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Stockholders' Deficit (Tables)

9 Months Ended

Oct. 31, 2013

Stockholders' Equity Note [Abstract]

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 (years)	3.0
Volatility	17.4	%
Dividends	0.0	%
Interest rate	0.82	%

The weighted-average inputs for the three months ended April 30, 2013 were as follows:

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 (years)	3.0
Volatility	29.7	%
Dividends	0.0	%
Interest rate	0.5	%

Fair Value Of Options Granted Based On Assumptions

The weighted-average inputs for the three months ended April 30, 2013 were as follows:

Exercise Price	$	0.41
Expected Term (in years)		4.59
Volatility		26.0	%
Dividend rate		0.0	%
Interest rate		0.5	%

The weighted-average inputs were as follows:

Exercise Price	$	0.004
Expected Term (in years)		3.00
Volatility		29.7	%
Dividend rate		0.0	%
Interest rate		0.6	%

Stock Option Transactions Under Stock Option Plans

Stock option activity for the nine months ended October 31, 2013 is summarized below:

	Shares	Weighted Average Per Share Exercise Price		Weighted Average Remaining Life (Years)	Aggregate Intrinsic Value
Balance, January 31, 2013	5,300,000	$	0.18	9.1	$	-
Granted	2,935,000		0.18	9.6		-
Cancelled	(1,000,000)		0.21	8.9
Exercised	-		-	-		-
Expired	-		-	-		-
Forfeited	-		-	-		-
Balance, October 31, 2013	7,235,000	$	0.17	9.3	$	-

Vested and exercisable - October 31, 2013	5,581,474	$	0.17	9.3	$	-

Summary of Restricted Stock Award

	Shares	Weighted Average Remaining Life (Years)	Aggregate Intrinsic Value			Weighted Average Fair Value
Balance, January 31, 2013	3,690,000	1.9	$	36,900	$	0.01
Granted	62,000	1.7		620		0.01
Released	-
Balance, October 31, 2013	3,752,000	1.3	$	37,520	$	0.01

Total Unrecognized Compensation Costs Related To Non-Vested Stock-Based Compensation Arrangements

As of October 31, 2013, total unrecognized compensation costs related to non-vested stock-based compensation arrangements granted under our 2010 and 2013 Equity Plans, and the ACO Plan’s and the weighted-average period of years expected to recognize those costs are as follows:

			Weighted
			Average
			Remaining
			Life
			(Years)

Common stock options	$	134,122	0.9

ACO Plan restricted stock	$	15,736	1.3

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 accompany condensed consolidated statement of operations as follows:

	Three months ended October 31,				Nine months ended October 31,
	2013		2012		2013		2012
Stock-based compensation expense:
Cost of services	$	73,767	$	440,075	$	550,925	$	452,584
General and administrative		284,203		1,107,162		1,475,757		1,279,717
	$	357,969	$	1,547,237	$	2,026,682	$	1,732,301

Warrants Outstanding

Warrants consisted of the following as of and for the nine months ended October 31, 2013:

	Aggregate
	Intrinsic		Number of
	Value		warrants
Outstanding at January 31, 2013	$	-	2,936,000
Granted		-	209,000
Exercised		-	-
Cancelled		-	-
Outstanding at October 31, 2013	$	-	3,145,000

Exercise Price		Warrants outstanding	Weighted average remaining contractual life		Warrants exercisable		Weighted average exercise price		Expiration
$	0.11485	1,250,000		2.75		1,250,000	$	0.1149	7/31/2016
$	0.11485	250,000		2.75		250,000	$	0.1149	7/31/2016
$	0.45000	500,000		2.75		500,000	$	0.4500	7/31/2016
$	0.50000	100,000		3.99		100,000	$	0.5000	10/28/2017
$	0.45000	825,000		4.25		825,000	$	0.4500	1/30/2018
$	0.40000	220,000		4.25		220,000	$	0.4000	1/31/2018
		3,145,000		3.29		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 October 31, 2013:

Common stock issued and outstanding		37,977,607
Conversion of 10% Notes		10,883,761
Conversion of 8% Notes		600,000
Conversion of 9% Notes		2,750,000
Warrants outstanding		3,145,000
Stock options outstanding		7,235,000
Remaining shares issuable under 2013 Equity Incentive Plan		2,410,000
		65,001,368

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References+ Details