Stock-based Payments

12 Months Ended

Apr. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based compensation in the amount of $1.1 million and $864,000 was recognized for years ended April 30, 2024 and 2023, respectively. Stock-based compensation costs were recorded as follows (in thousands):


	Year Ended April 30,
	2024		2023
General and administrative	$	706	$	505
Sales and marketing	168		192
Research and development	21		19
TOS cost of sales	223		148


Total stock-based compensation expense	$	1,118	$	864

The Company has in place a 2021 Equity Incentive Plan and 2010 Equity Incentive Plan ("the Plans"). In general, these plans provide for stock-based compensation to the Company’s employees, directors and non-employees. The plans also provide for limits on the aggregate number of shares that may be granted, the term of grants and the strike price of option awards.

2021 Equity Incentive Plan

As part of the 2021 Annual Shareholders Meeting, shareholders approved the adoption of the 2021 Equity Incentive Plan (“2021 Equity Plan”). The purpose of the 2021 Equity Plan is to grant (i) Non-statutory Stock Options; (ii) Incentive Stock Options; (iii) Restricted Stock Awards; and/or (iv) Stock Appreciation Rights (collectively, stock-based compensation) to its employees, directors and non-employees. Total stock awards under the 2021 Equity Plan shall not exceed 2 million shares of common stock. Options and Stock Appreciation Rights expire no later than ten years from the date of grant and the awards vest as determined by the Board of Directors (the "Board") or Chief Executive Officer. Options and Stock Appreciation Rights have a strike price not less than 100% of the fair market value of the common stock subject to the option or right at the date of grant. As of April 30, 2024, approximately 1.3 million shares were left to issue under this plan.

2010 Equity Incentive Plan

On February 18, 2011, shareholders owning a majority of the issued and outstanding shares of the Company executed a written consent approving the 2010 Equity Incentive Plan (“2010 Equity Plan”). The purpose of the 2010 Equity Plan is to grant (i) Non-statutory Stock Options; (ii) Restricted Stock Awards; and (iii) Stock Appreciation Rights (collectively, stock-based compensation) to its employees, directors and non-employees. Total stock awards under the 2010 Equity Plan shall not exceed 30,000,000 shares of common stock. Options and Stock Appreciation Rights expire no later than ten years from the date of grant and the awards vest as determined by the Board. Options and Stock Appreciation Rights have a strike price not less than 100% of the fair market value of the common stock subject to the option or right at the date of grant. After February 2021, no more shares were available to be issued from this plan.

Director Compensation Plan

On December 12, 2013, the Compensation Committee of the Board (the "Committee") adopted changes to the Director Compensation Plan of 2010 (the “Director Plan”) effective December 1, 2013. Under the Director Plan, independent directors of the Company were entitled to an annual award of a five-year option to purchase 8,333 shares of the Company’s common stock, and the Chairman of the Board of the Company was entitled to an annual award of a five-year option to purchase 16,667 shares of the Company’s common stock. Independent directors who serve as chairperson of a committee were also to receive an annual grant of a five-year option to purchase 1,667 shares of the Company’s common stock. During fiscal year 2021, the Committee adopted the Director Compensation Plan of 2021 (the "2021 Plan"). Under the 2021 Plan, independent directors are entitled to an annual base compensation of $100,000 which can be received in either ten-year company options or a combination of company options and cash, not to exceed $35,000. The Chairman of the Board’s annual compensation was set at an equivalent of $150,000. Compensation for independent directors who serve as chairperson of a committee was set at an equivalent of between $110,000 to $120,000. All options issued under the 2021 Plan vest quarterly at a rate of 25%. Option grants will typically be issued after the annual shareholder meeting which will generally be held in October of each year. New directors will receive compensation upon joining the Board equal to a pro-rata equivalent for the remainder of the year. Options issued under the 2021 Plan are issued pursuant to the 2021 Equity Plan.

Stock Option Grants

Black-Scholes weighted average assumptions used to calculate the fair value of options granted during the years ended April 30, 2024 and 2023 were as follows:


	Year Ended April 30,
	2024	2023
Expected term in years	6	6
Risk-free interest rates	4.0% - 4.5%	2.9% - 3.9%
Volatility	63% - 64%	61% - 63%
Dividend yield	0%	0%

The weighted average fair value of stock options granted during the years ended April 30, 2024 and 2023, was $3.75 and $4.31, respectively. The Company’s stock options activity and related information as of and for the years ended April 30, 2024 and 2023 is as follows:


	Directors and Employees	Non- Employees	Total	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding, May 1, 2023	1,739,336	36,331	1,775,667	$	4.80	4.6	$	2,683,000
Granted	444,730	—	444,730	6.08		9.5	$	—
Exercised	(155,449)	—	(155,449)	2.31
Canceled	(50,535)	—	(50,535)	4.82
Forfeited	(40,750)	—	(40,750)	6.21
Expired	(54,166)	—	(54,166)	12.78

Outstanding, April 30, 2024	1,883,166	36,331	1,919,497	5.04		5.2	$	2,172,000

Vested and expected to vest as of April 30, 2024	1,883,166	36,331	1,919,497	5.04		5.2	$	2,172,000

Exercisable as of April 30, 2024	1,481,145	3,750	1,484,895	4.65		4.2	$	2,172,000


	Directors and Employees	Non- Employees	Total	Weighted Average Exercise Price	Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding, May 1, 2022	1,617,324	40,915	1,658,239	4.51	4.9	$	6,131,000
Granted	186,720	—	186,720	7.22	9.4	—
Exercised	(36,209)	—	(36,209)	3.21
Canceled	(13,874)	—	(13,874)	3.93
Forfeited	(14,625)	—	(14,625)	7.94
Expired	—	(4,584)	(4,584)	5.40

Outstanding, April 30, 2023	1,739,336	36,331	1,775,667	4.80	4.6	$	2,683,000

Vested and expected to vest as of April 30, 2023	1,739,336	36,331	1,775,667	4.80	4.6	$	2,683,000

Exercisable as of April 30, 2023	1,436,932	1,875	1,438,807	4.35	3.8	$	2,681,000

Share Repurchase Program

On March 29, 2023, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to an aggregate of $5.0 million of the Company’s common stock. The share repurchase program is designed in accordance with Rule 10b-18 of the Exchange Act. The shares may be purchased from time to time in the open market, as permitted under applicable rules and regulations, at prevailing market prices. The timing and amount of repurchases will depend on market conditions, share price, applicable legal requirements and other factors. The program does not obligate the Company to acquire a minimum number of shares. As of April 30, 2024, the Company had purchased approximately 120,300 shares of its common stock, at an average price of $5.73 per share, totaling approximately $708,000 and leaving an available balance of approximately $4.3 million authorized by the Board for use in the program as of that date.