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Share-Based Compensation
 9 Months Ended
Jan. 31, 2024
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 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 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 January 31, 2024, the Company had approximately 1,167,000 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 January 31, 2024, 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 nine months ended January 31, 2024 and 2023.

 

A summary of stock options under the 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   (685,196)  $1.32      
Outstanding as of January 31, 2024   843,989   $2.09    7.8 
Exercisable as of January 31, 2024   560,200   $2.70    7.4 

 

As of January 31, 2024, the total intrinsic value of outstanding and exercisable options was approximately zero. As of January 31, 2024, approximately 284,000 options were unvested, which had an intrinsic value of zero and a weighted average remaining contractual term of 8.7 years. There was approximately $50,000 and $230,000 of total recognized compensation cost related to stock options during each of the nine months ended January 31, 2024 and 2023, respectively. There was approximately $(49,000) and $62,000 of total recognized compensation cost related to stock options during each of the three months ended January 31, 2024 and 2023, respectively. The current period negative expense is a result of expense recapture due to employee terminations during the quarter. As of January 31, 2024, there was approximately $207,000 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 1.6 years.

 

 

Performance Stock Units

 

As of January 31, 2024, there were no performance stock unit outstanding. As of April 30, 2023 there were 66,667 units outstanding which were all canceled during the quarter ended July 31, 2023. There was approximately $43,000 and $132,000 of total recognized compensation cost related to performance stock units during the nine months ended January 31, 2024 and 2023, respectively. There was approximately zero and $31,000 of total recognized compensation cost related to performance stock units during the three months ended January 31, 2024 and 2023, respectively.

 

Restricted Stock Units

 

Compensation expense for restricted stock units (“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 nine months ended January 31, 2024 and 2023, the Company granted 183,000 and 1,609,000 shares, respectively, that were subject to both service-based and market-based vesting requirements.

 

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

  

   Number of Shares  

Weighted Average
Price per Share

 
Unvested at April 30, 2023   1,985,995   $0.89 
Granted   183,500   $0.35 
Vested and issued   (786,998)  $0.86 
Cancelled/forfeited   (326,952)  $1.32 
Unvested at January 31, 2024   1,055,545   $0.75 

 

There was approximately $710,000 and $549,000 of total recognized compensation cost related to RSUs for the nine months ended January 31, 2024 and 2023, respectively. There was approximately $179,000 and $185,000 of total recognized compensation cost related to RSUs for the three months ended January 31, 2024 and 2023, respectively. As of January 31, 2024, there was approximately $392,000 of unrecognized compensation cost remaining related to unvested RSUs. 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 1.3 years. Included in Vested and Issued are 47,103 RSU’s which vested for the nine months ended January 31, 2024 and were withheld for tax withholding purposes. These shares are included in treasury shares (see the Consolidated Statement of Shareholders Equity).