XML 98 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stockholders' Deficit (Tables)
 12 Months Ended
Jan. 31, 2014
Stockholders' Equity Note [Abstract]  
Schedule of Nonvested Share Activity
A summary of the Company’s restricted stock sold to employees, directors and consultants with a right of repurchase of unlapsed or unvested shares is as follows for the year ended January 31: 
 
 
 
 
 
 
Weighted-average
 
 
 
 
 
 
Grant Date
 
 
 
Shares
 
Fair Value
 
Unvested or unlapsed shares - February 1, 2012
 
 
-
 
$
-
 
Granted
 
 
5,750,000
 
$
0.30
 
Vested / lapsed
 
 
(3,914,815)
 
$
0.30
 
Forfeited
 
 
-
 
$
-
 
Unvested or unlapsed shares - January 31, 2013
 
 
1,835,185
 
$
0.30
 
Granted
 
 
-
 
$
-
 
Vested / lapsed
 
 
(822,222)
 
$
0.21
 
Forfeited
 
 
-
 
$
-
 
Unvested or unlapsed shares - January 31, 2014
 
 
1,012,963
 
$
0.41
Fair Value of Closing Stock Price Based on Assumptions
The calculation was based on the Company’s closing stock price on the date of grant and the following weighted-average inputs:
 
Expected term (in years)
 
3.0
 
Volatility
 
17.4
%
Dividends
 
0.0
%
Interest rate
 
0.82
%
 
The calculation was based on the Company’s closing stock price on the date of grant and the following weighted-average inputs:
 
Exercise Price
 
$
0.41
 
Expected Term (in years)
 
 
4.59
 
Volatility
 
 
26.0
%
Dividend rate
 
 
0.0
%
Interest rate
 
 
0.5
%
 
The calculation was based on the Company’s closing stock price on the date of grant and the following weighted-average inputs:
 
Expected term (in years)
 
3.0
 
Volatility
 
29.7
%
Dividends
 
0.0
%
Interest rate
 
0.5
%
 
The fair value of the 400,000 stock options of $ 69,464 was determined under the Black-Scholes option pricing model using the Company’s closing stock price on the date of grant and the following weighted-average inputs:
 
Exercise Price
 
$
0.50
 
Expected Term (in years)
 
 
3.0
 
Volatility
 
 
29.7
%
Dividend rate
 
 
0.0
%
Interest rate
 
 
0.64
%
Fair Value of Options Granted Based on Assumptions
The calculation was based on the Company’s closing stock price on the date of grant and the following weighted-average inputs:
 
Exercise Price
 
$
0.004
 
Expected Term (in years)
 
 
3.00
 
Volatility
 
 
29.7
%
Dividend rate
 
 
0.0
%
Interest rate
 
 
0.6
%
 
The calculation was based on the estimated fair value of the Company’s stock price on the date of grant and the following weighted-average inputs:
 
Exercise Price
 
$
0.47
 
Expected Term (in years)
 
 
6.00
 
Volatility
 
 
67.2
%
Dividend rate
 
 
0.0
%
Interest rate
 
 
1.4
%
Stock Option Transactions Under Stock Option Plans
Stock option activity for the years ended January 31, 2014 and 2013 is summarized below: 
 
 
 
Shares
 
Weighted
Average
Per Share
Exercise
Price
 
Weighted
Average
Remaining
Life
(Years)
 
Aggregate
Intrinsic
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, February 1, 2012
 
1,150,000
 
$
0.15
 
8.9
 
$
-
 
Granted
 
4,225,000
 
 
0.19
 
9.2
 
 
-
 
Exercised
 
(75,000)
 
 
0.21
 
-
 
 
-
 
Expired
 
-
 
 
-
 
-
 
 
-
 
Forfeited
 
-
 
 
-
 
-
 
 
-
 
Balance, January 31, 2013
 
5,300,000
 
 
0.18
 
9.1
 
$
-
 
Granted
 
3,085,000
 
 
0.18
 
9.4
 
 
-
 
Cancelled
 
(1,020,250)
 
 
0.22
 
8.6
 
 
-
 
Exercised
 
-
 
 
-
 
-
 
 
-
 
Expired
 
-
 
 
-
 
-
 
 
-
 
Forfeited
 
(6,750)
 
 
0.79
 
9.0
 
 
-
 
Balance, January 31, 2014
 
7,358,000
 
$
0.17
 
9.0
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested and exercisable - January 31, 2014
 
6,066,890
 
$
0.16
 
9.1
 
$
-
Summary of Restricted Stock Award
The following table summarizes the restricted stock award in the ACO Plan during the years ended January 31, 2014 and 2013:
 
 
 
Shares
 
Weighted
Average
Remaining
Life
(Years)
 
Aggregate
Intrinsic
Value
 
Weighted
Average
Fair Value
 
Balance, February 1, 2012
 
-
 
-
 
$
-
 
 
-
 
Granted
 
3,690,000
 
1.9
 
 
36,900
 
 
0.01
 
Released
 
 
 
 
 
 
 
 
 
 
 
Balance, January 31, 2013
 
3,690,000
 
1.9
 
 
36,900
 
 
0.01
 
Granted
 
62,000
 
1.7
 
 
620
 
 
0.01
 
Released
 
-
 
 
 
 
 
 
 
 
 
Balance, January 31, 2014
 
3,752,000
 
1.0
 
$
37,520
 
$
0.01
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested and exercisable - January 31, 2014
 
2,480,042
 
 
 
 
 
 
 
 
 
Total Unrecognized Compensation Costs Related To Non-Vested Stock-Based Compensation Arrangements
As of January 31, 2014, total unrecognized compensation costs related to non-vested stock-based compensation arrangements granted under our 2010 and 2013 Equity Plans, and the ACO Plan and the weighted-average period of years expected to recognize those costs are as follows:
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
Average
 
 
 
 
 
 
Remaining
 
 
 
 
 
 
Life
 
 
 
 
 
 
(Years)
 
 
 
 
 
 
 
 
Common stock options
 
$
118,194
 
0.8
 
 
 
 
 
 
 
 
ACO Plan restricted stock
 
$
15,736
 
1.0
 
Summary of Stock Based Compensation Expense Related To Restricted Stock and Option Awards
Stock-based compensation expense related to common stock and common stock option awards is recognized over their respective vesting periods and was included in the accompanying consolidated statement of operations for the years ended January 31:  
 
 
 
2014
 
2013
 
Stock-based compensation expense:
 
 
 
 
 
 
 
Cost of services
 
$
616,902
 
$
550,710
 
General and administrative
 
 
1,540.955
 
 
1,511,018
 
 
 
$
2,157,857
 
$
2,061,728
 
Warrants Outstanding
Warrants consisted of the following:
 
 
 
Aggregate
 
 
 
 
 
Intrinsic
Value
 
Number of
warrants
 
Outstanding at February 1, 2012
 
$
-
 
1,500,000
 
Granted
 
 
-
 
2,936,000
 
Exercised
 
 
-
 
 
 
Cancelled
 
 
-
 
(1,500,000)
 
Outstanding at January 31, 2013
 
$
-
 
2,936,000
 
Granted
 
 
-
 
209,000
 
Exercised
 
 
-
 
-
 
Cancelled
 
 
-
 
-
 
Outstanding at January 31, 2014
 
$
-
 
3,145,000
 
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
 
 
 
 
 
average
 
 
 
Weighted
 
 
 
 
Warrants
 
remaining
 
Warrants
 
average
 
Exercise Price
 
outstanding
 
contractual life
 
exercisable
 
exercise price
 
$
0.11485
 
1,250,000
 
2.50
 
1,250,000
 
$
0.1149
 
$
0.11485
 
250,000
 
2.50
 
250,000
 
$
0.1149
 
$
0.45000
 
500,000
 
2.50
 
500,000
 
$
0.4500
 
$
0.50000
 
100,000
 
3.74
 
100,000
 
$
0.5000
 
$
0.45000
 
825,000
 
4.00
 
825,000
 
$
0.4500
 
$
0.40000
 
220,000
 
4.00
 
220,000
 
$
0.4000
 
 
 
 
3,145,000
 
3.04
 
3,145,000
 
$
0.2882
 
Amount of Shares of Common Stock Reserved
The amount of shares of common stock reserved for these purposes is as follows at January 31, 2014:
  
Common stock issued and outstanding
 
46,952,469
 
Conversion of 8% Notes (1)
 
182,080
 
Conversion of 9% Notes
 
2,750,000
 
Warrants outstanding
 
3,145,000
 
Stock options outstanding
 
7,358,000
 
Remaining shares issuable under 2013 Equity Incentive Plan
 
1,820,000
 
Shares and warrants issued in March 2014 (2)
 
6,000,000
 
 
 
68,207,549
 
  
(1) Reflects shares issued in February 2014 in connection with the conversion of the 8% notes. See Note 10.
 
(2) Reflects 2,000,000 shares and 4,000,000 warrants issued in March 2014 in connection with an equity investment. See Note 10.