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Share-Based Payments | 6 Months Ended
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Oct. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 3. Share-Based Payments The Company has in place a 2010 Equity Incentive Plan and a 2008 Equity Incentive Plan. In general, these plans provide for stock-based compensation in the form of (i) Non-statutory Stock Options; (ii) Restricted Stock Awards; and (iii) Stock Appreciation Rights 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. Stock-based compensation in the amount of $476,000 and $624,000 was recognized for the three months ended October 31, 2013 and 2012, respectively, and $1,028,000 and $1,364,000 for the six months ended October 31, 2013 and 2012, respectively. Stock-based compensation expense was recognized as follows (in thousands):
|  | Three Months Ended |  | Six Months Ended |
|  | October 31, |  | October 31, |
|  | 2013 |  | 2012 |  | 2013 |  | 2012 |
General and administrative |  | $ | 401 |  | $ | 550 |  | $ | 820 |  | $ | 1,119 |
Sales and marketing |  |  | 63 |  |  | 61 |  |  | 126 |  |  | 143 |
Research and development |  |  | 3 |  |  | 3 |  |  | 16 |  |  | 29 |
TOS cost of sales |  |  | 3 |  |  | 4 |  |  | 11 |  |  | 12 |
POS cost of sales |  |  | 6 |  |  | 6 |  |  | 55 |  |  | 61 |
Total stock-based compensation expense |  | $ | 476 |  | $ | 624 |  | $ | 1,028 |  | $ | 1,364 |
Stock Option Grants Black-Scholes assumptions used to calculate the fair value of options granted during the three and six months ended October 31, 2013 and 2012 were as follows (in thousands):
|  | Three Months Ended |  | Six Months Ended |
|  | October 31, |  | October 31, |
|  | 2013 |  | 2012 |  | 2013 |  | 2012 |
Expected term in years |  | 6.0 |  | 6.0 |  | 6.0 |  | 6.0 |
Risk-free interest rates |  | 1.13% - 2.41% |  | 0.9% |  | 1.13% - 2.41% |  | 0.8% - 0.9% |
Volatility |  | 97.9% - 101.4% |  | 99% - 100% |  | 97.9% - 101.4% |  | 99% - 100% |
Dividend yield |  | 0% |  | 0% |  | 0% |  | 0% |
The weighted average fair value of stock options granted during the three months ended October 31, 2013 and 2012 was $1.06 and $ 0.26, respectively. The weighted average fair value of stock options granted during the six months ended October 31, 2013 and 2012 was $0.94 and $0.52, respectively. The Company’s stock options activity for the six months ended October 31, 2013 is as follows:
|  |  |  |  |  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  |  |  |  | Weighted |  | Average |  |  |  |
|  |  |  | Directors |  |  |  | Average |  | Remaining |  | Aggregate |
|  | Non- |  | and |  |  |  | Exercise |  | Contractual |  | Intrinsic |
|  | Employees |  | Employees |  | Total |  | Price |  | Life (Years) |  | Value |
Outstanding, May 1, 2013 |  | 765,000 |  | 13,125,205 |  | 13,890,205 |  | $ | 0.85 |  | 7.0 |  | $ | 89,000 |
Granted |  | - |  | 1,645,000 |  | 1,645,000 |  |  | 1.18 |  | 9.8 |  |  | 237,000 |
Exercised |  | - |  | (15,000) |  | (15,000) |  |  | 0.62 |  |  |  |  |  |
Forfeited |  | - |  | (20,000) |  | (20,000) |  |  | 0.50 |  |  |  |  |  |
Expired |  | - |  | (26,250) |  | (26,250) |  |  | 0.75 |  |  |  |  |  |
Outstanding, October 31, 2013 |  | 765,000 |  | 14,708,955 |  | 15,473,955 |  |  | 0.89 |  | 6.8 |  |  | 6,290,000 |
Vested and expected to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
vest as of October 31, 2013 |  | 765,000 |  | 14,708,955 |  | 15,473,955 |  |  | 0.89 |  | 6.8 |  |  | 6,290,000 |
Exercisable as of |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
October 31, 2013 |  | 514,792 |  | 13,014,370 |  | 13,529,162 |  |  | 0.85 |  | 6.5 |  |  | 2,703,000 |
Included in the balances outstanding in the table above are 10,000,000 options granted to the Company’s Chief Executive Officer and its President at the time of commencement of their employment in fiscal 2011, of which 5,000,000 contain only service-based vesting provisions and 5,000,000 contain both service and performance-based vesting provisions. The service-based provisions of these options provide for vesting to occur monthly over a period of three years. The performance-based conditions, which had to be met prior to vesting to occur included: (i) closing of one or more financings of the Company in the aggregate amount of at least $5,000,000; (ii) bringing in new Company management; (iii) launching of personalized medicine (oncology) business; and (iv) commencing implementation of the Company’s business plan. The service-based options, like all of the Company’s service-based options, are expensed on a straight-line basis. Since the straight-line method is not available for performance or market-based share-based payments, the 5,000,000 performance-based options are being expensed on an accelerated basis. The Company’s Board of Directors determined that in April 2011 each of the performance conditions under the awards were met. Subsequent to October 31, 2013, but prior to the issuance of this Form 10Q, the company granted approximately 6.4 million stock options to certain employees at a weighted average exercise price of $1.23. Restricted Stock Grants A summary of the activity related to restricted stock grants is as follows (in thousands):
|  |  |  | Weighted |
|  |  |  | Average Grant |
|  |  |  | Date Fair Value |
|  | Shares |  | Per Share |
Nonvested as of May 1, 2013 |  | 50,000 |  | $ | 0.30 |
Granted |  | - |  |  | - |
Vested |  | (50,000) |  |  | 0.30 |
Forfeited |  | - |  |  | - |
Expired |  | - |  |  | - |
Nonvested as of October 31, 2013 |  | - |  |  | - |
The aggregate fair value of shares vested during the six months ended October 31, 2013 and 2012 was $7,500 and $11,000, respectively. Stock Purchase Warrants As of October 31, 2013 and April 30, 2013, the Company had warrants outstanding for the purchase of 3,276,667 shares of its common stock, all of which were exercisable. Of these warrants, 1,266,667 were issued in connection with the April 2011 Private Placement and 1,860,000 were issued in connection with the January 2013 Private Placement and are accounted for as liabilities as further discussed in Note 4. The remaining 150,000 warrants are accounted for as equity instruments and expire on July 31, 2014. Activity related to these warrants, which expire at various dates through April 2016, is summarized as follows (dollars in thousands):
|  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  | Weighted |  | Average |  |  |  |
|  | Number |  | Average |  | Remaining |  | Aggregate |
|  | of |  | Exercise |  | Contractual |  | Intrinsic |
|  | Shares |  | Price |  | Life (Years) |  | Value |
Outstanding, May 1, 2013 |  | 3,276,667 |  | $ | 0.61 |  | 3.9 |  | $ | - |
Granted |  | - |  |  | - |  | - |  |  | - |
Exercised |  | - |  |  | - |  | - |  |  | - |
Expired |  | - |  |  | - |  | - |  |  | - |
Outstanding, October 31, 2013 |  | 3,276,667 |  | $ | 0.61 |  | 3.4 |  | $ | 2,215,967 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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