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Share-Based Compensation
 6 Months Ended
Oct. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation

(12) Share-Based Compensation

 

In 2015, upon approval by the Company’s shareholders, the Company’s 2015 Omnibus Incentive Plan (the “2015 Plan”) became effective. A total of 1,332,036 shares were authorized for issuance under the 2015 Omnibus Incentive Plan, including shares available for awards under the 2006 Stock Incentive Plan remaining at the time that plan terminated, or that were subject to awards under the 2006 Stock Incentive Plan that thereafter terminated by reason of expiration, forfeiture, cancellation or otherwise. If any award under the 2006 Stock Incentive Plan or 2015 Plan expires, is cancelled, terminates unexercised or is forfeited, those shares become again available for grant under the 2015 Plan. The 2015 Plan will terminate ten years after its effective date, in October 2025, but is subject to earlier termination as provided in the 2015 Plan. At subsequent shareholder meetings, including most recently in January 2023, the shareholders approved an aggregate increase to the 2015 Plan of 3,050,000 shares resulting in total shares authorized for issuance of 4,382,036 as of January 2023. As of October 31, 2023, the Company had approximately 684,000 shares available for future issuance under the 2015 Plan.

 

 

On January 18, 2018, the Company’s Board of Directors adopted the Company’s Employment Inducement Incentive Award Plan (the “2018 Inducement Plan”) pursuant to which the Company reserved 25,000 shares of common stock for issuance under the Inducement Plan in accordance with Rule 711(a) of the NYSE American Company Guide. On February 9, 2022, the 2018 Inducement Plan was amended to increase the authorized shares by 250,000 to 275,000. As of October 31, 2023, there were approximately 111,000 shares available for grant under the 2018 Inducement Plan. The 2015 Plan and the 2018 Inducement Plan together comprise the “Stock Incentive Plans”.

 

Stock Options

 

The Company estimates the fair value of each stock option award granted with service-based vesting requirements, using the Black-Scholes option pricing model, assuming no dividends, and using weighted average valuation assumptions. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant commensurate with the expected life of the award. The expected life (estimated period of time outstanding) of the stock options granted was estimated using the “simplified” method as permitted by the SEC’s Staff Accounting Bulletin No. 110, Share-Based Payment. Expected volatility is based on the Company’s historical volatility over the expected life of the stock option granted. The Company did not grant any stock options during the three and six months ended October 31, 2023 and 2022.

 

A summary of stock options under our Stock Incentive Plans is detailed in the following table.

 

  

Shares

Underlying

Options

  

Weighted

Average

Exercise

Price

  

Weighted

Average

Remaining

Contractual

Term

(In Years)

 
Outstanding as of April 30, 2023   1,529,185   $1.75    8.8 
Granted   —   $—      
Exercised   —   $—      
Cancelled/forfeited   (345,694)  $1.57      
Outstanding as of October 31, 2023   1,183,491   $1.80    8.2 
Exercisable as of October 31, 2023   417,211   $3.34    7.1 

 

As of October 31, 2023, the total intrinsic value of outstanding and exercisable options was approximately zero. As of October 31, 2023, approximately 766,000 options were unvested, which had an intrinsic value of zero and a weighted average remaining contractual term of 8.8 years. There was approximately $98,000 and $168,000 of total recognized compensation cost related to stock options during each of the six months ended October 31, 2023 and 2022, respectively. There was approximately $20,000 and $72,000 of total recognized compensation cost related to stock options during each of the three months ended October 31, 2023 and 2022, respectively. As of October 31, 2023, there was approximately $0.4 million of total unrecognized compensation cost related to non-vested stock options granted under the plans. This cost is expected to be recognized over a weighted-average period of 1.8 years.

 

Performance Stock Options

 

As of October 31, 2023, there were no performance stock options outstanding. As of April 30, 2023 there were 66,667 shares outstanding which were all canceled during the quarter ended July 31, 2023. There was approximately $43,000 and $101,000 of total recognized compensation cost related to performance stock options during the six months ended October 31, 2023 and 2022, respectively. There was approximately zero and $48,000 of total recognized compensation cost related to performance stock options during the three months ended October 31, 2023 and 2022, respectively.

 

 

Restricted Stock Units

 

Compensation expense for RSUs is generally recorded based on the market value on the date of grant and recognized ratably over the associated service and performance period. During the six months ended October 31, 2023 and 2022, the Company granted 58,000 and 52,500 shares, respectively, that were subject to both service-based and market-based vesting requirements.

 

A summary of unvested RSU’s under our Stock Incentive Plans is as follows:

 

  

Number

of Shares

  

Weighted

Average Price per

Share

 
Unvested at April 30, 2023   1,985,994   $0.89 
Granted   58,500   $0.53 
Vested and issued   (69,666)  $1.41 
Cancelled/forfeited   (58,647)  $2.01 
Unvested at October 31, 2023   1,916,181   $0.86 

 

There was approximately $532,000 and $364,000 of total recognized compensation cost related to RSUs for the six months ended October 31, 2023 and 2022, respectively. There was approximately $252,000 and $180,000 of total recognized compensation cost related to restricted stock units for the three months ended October 31, 2023 and 2022, respectively. As of October 31, 2023, there was approximately $554,000 of unrecognized compensation cost remaining related to unvested restricted stock units granted under our plans. The primary driver of unrecognized compensation cost for RSU’s is related to RSU grants in accordance with the Company’s stock holding guidelines for Named Executive Officers (“NEO’s”). This cost is expected to be recognized over a weighted-average period of 1.2 years.