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Share-Based Payments | 9 Months Ended
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Jan. 31, 2014
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 (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 $941,000 and $570,000 was recognized for the three months ended January 31, 2014 and 2013, respectively, and $1,968,000 and $1,934,000 for the nine months ended January 31, 2014 and 2013, respectively. Stock-based compensation expense was recognized as follows (in thousands):
|  | Three Months Ended |  | Nine Months Ended |
|  | January 31, |  | January 31, |
|  | 2014 |  | 2013 |  | 2014 |  | 2013 |
General and administrative |  | $ | 866 |  | $ | 500 |  | $ | 1,686 |  | $ | 1,619 |
Sales and marketing |  |  | 63 |  |  | 56 |  |  | 189 |  |  | 199 |
Research and development |  |  | 4 |  |  | 4 |  |  | 19 |  |  | 33 |
TOS cost of sales |  |  | 2 |  |  | 4 |  |  | 12 |  |  | 16 |
POS cost of sales |  |  | 6 |  |  | 6 |  |  | 62 |  |  | 67 |
Total stock-based compensation expense |  | $ | 941 |  | $ | 570 |  | $ | 1,968 |  | $ | 1,934 |
Stock Option Grants Black-Scholes assumptions used to calculate the fair value of options granted during the three and nine months ended January 31, 2014 and 2013 were as follows (in thousands):
|  | Three Months Ended |  | Nine Months Ended |
|  | January 31, |  | January 31, |
|  | 2014 |  | 2013 |  | 2014 |  | 2013 |
Expected term in years |  |  | 5 - 6 |  |  | 6.0 |  |  | 5 - 6 |  |  | 6.0 |
Risk-free interest rates |  |  | 1.4% - 2.1% |  |  | 0.9% - 1.0% |  |  | 0.8% - 2.4% |  |  | 0.8% - 1.0% |
Volatility |  |  | 97% - 102% |  |  | 100% - 102% |  |  | 97% - 102% |  |  | 99% - 102% |
Dividend yield |  |  | 0% |  |  | 0% |  |  | 0% |  |  | 0% |
The weighted average fair value of stock options granted during the three months ended January 31, 2014 and 2013 was $0.97 and $0.27, respectively. The weighted average fair value of stock options granted during the nine months ended January 31, 2014 and 2013 was $0.96 and $0.36, respectively. The Company’s stock options activity for the nine months ended January 31, 2014 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 |  |  | - |  |  | 8,850,000 |  |  | 8,850,000 |  |  | 1.23 |  |  | 9.7 |  |  | 148,000 |
Exercised |  |  | - |  |  | (15,000) |  |  | (15,000) |  |  | 0.62 |  |  |  |  |  |  |
Forfeited |  |  | - |  |  | (65,000) |  |  | (65,000) |  |  | 0.84 |  |  |  |  |  |  |
Expired |  |  | - |  |  | (26,250) |  |  | (26,250) |  |  | 0.75 |  |  |  |  |  |  |
Outstanding, January 31, 2014 |  |  | 765,000 |  |  | 21,868,955 |  |  | 22,633,955 |  |  | 1.00 |  |  | 7.6 |  |  | 2,224,000 |
Vested and expected to vest as of January 31, 2014 |  |  | 765,000 |  |  | 21,868,955 |  |  | 22,633,955 |  |  | 1.00 |  |  | 7.6 |  |  | 2,224,000 |
Exercisable as of January 31, 2014 |  |  | 522,292 |  |  | 13,090,203 |  |  | 13,612,495 |  |  | 0.85 |  |  | 6.2 |  |  | 2,132,000 |
Included in the balances outstanding in the table above are 3,000,000 options (which vest based on service criteria) granted to the Company’s Chief Executive Officer and its President as of November 5, 2013 as part of their new employment agreements. In addition to the above, there are 3,000,000 additional options granted to the Company’s Chief Executive Officer and President which vest based on both service and performance criteria. The service-based conditions of these options provide for vesting to occur monthly over a period of three years. The performance-based conditions have not been finalized as of January 31, 2014. 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 3,000,000 performance-based options will be expensed on an accelerated basis once the Company determines it is probable that the performance-based conditions will be met. 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 January 31, 2014 |  |  | - |  |  | - |
Stock Purchase Warrants As of January 31, 2014 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, January 31, 2014 |  |  | 3,276,667 |  | $ | 0.61 |  |  | 3.2 |  | $ | 1,265,734 |

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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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