Stock Options

12 Months Ended

Apr. 30, 2012

Stock Options [Abstract]

STOCK OPTIONS

NOTE L—STOCK OPTIONS

The Company has stock option plans (“Option Plans”) under which certain employees and non-employee directors may acquire up to 1,753,500 shares of common stock. Options available for grant under the employee plans total 1,357,500, with the non-employee director plans allowing for a total of 396,000 options available for grant. All Option Plans have been approved by the Company’s shareholders. At April 30, 2012, the Company has 205,864 shares available for future issuance to employees under the employee plan and none under the non-employee director plan. The Option Plans are interpreted and administered by the Compensation Committee of the Board of Directors. In fiscal year 2012, there were 150,000 options approved and available for grant by the Board of Directors. The maximum term of options granted under the Option Plans is generally 10 years. Options granted under the Option Plans are either incentive stock options or nonqualified options. Each Option under the Option Plans is exercisable for one share of stock. Options forfeited under the Option Plans are available for reissuance. Options granted under these plans are granted at an exercise price equal to the fair market value of a share of the Company’s common stock on the date of grant.

There were no options granted during fiscal year 2012 or 2011.

Option-valuation models require the input of highly subjective assumptions. Because the Company’s stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing method does not necessarily provide a reliable single measure of the fair value of the Company’s stock options. When the Company does grant stock options, it uses the U.S. Treasury yield in effect at the time of the option grant to calculate the risk-free interest rate and the simplified method to calculate the weighted-average expected life, due to limited history. The expected dividend, volatility and forfeitures rates of options are based on historical experience and expected future results.

The table below summarizes option activity through April 30, 2012:

	Number of					Number of
	securities to be			Weighted-		options
	issued upon			average		exercisable
	exercise of			exercise		at end
	outstanding options			price		of year
Outstanding at April 30, 2010		502,037		$	7.90		498,910
Options exercised during 2011		(41,218	)		2.20
Options exercised/expired during 2011		(1,230	)		4.00
Outstanding at April 30, 2011		459,589			8.42		458,337
Options exercised during 2012		(45,298	)		2.20
Options expired during 2012		(4,099	)		3.69
Outstanding at April 30, 2012		410,192		$	9.16		410,192

Intrinsic value is calculated as the positive difference between the market price of the Company’s common stock and the exercise price of the underlying options. During the fiscal years ended April 30, 2012 and 2011, the aggregate intrinsic value of options exercised was $71,118 and $128,009, respectively. As of April 30, 2012 and 2011, the aggregate intrinsic value of in the money options outstanding was $0 and $159,529, respectively.

Information with respect to stock options outstanding and exercisable at April 30, 2012, follows:

	Options outstanding and exercisable
	Number		Weighted-average		Weighted-
	outstanding at		remaining		average
Range of exercise prices	April 30, 2012		contractual life		exercise price
$3.99 – 5.40		15,000		3.52 years	$	4.46
9.17 – 11.56		395,192		3.82 years		9.34
		410,192			$	9.16

The Company recognized approximately $2,400 and $9,700 in stock compensation expense in fiscal years 2012 and 2011, respectively.

As of April 30, 2012, the balance of unrecognized compensation cost related to the Company’s stock option plans was $0.