FAIR VALUE MEASUREMENTS

3 Months Ended

Jul. 31, 2011

Notes to Financial Statements

FAIR VALUE MEASUREMENTS

NOTE 8 - FAIR VALUE MEASUREMENTS

As defined by the Accounting Standard Codification (ASC), fair value measurements and disclosures establish a hierarchy that prioritizes fair value measurements based on the type of inputs used for the various valuation techniques (market approach, income approach and cost approach).  The levels of hierarchy are described below:

●   Level 1:  Observable inputs such as quoted market prices in active markets for identical assets or liabilities.

●   Level 2:  Inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets, such as interest rates and yield curves that are observable at commonly-quoted intervals.

●   Level 3:  Unobservable inputs that reflect the reporting entity’s own assumptions, as there is little, if any, related market activity.

The following table sets forth the assets and liabilities measured at fair value on a nonrecurring basis, by input level, in the consolidated balance sheet at July 31, 2011:

	Quoted Prices in
	Active Markets for		Significant Other		Significant
Balance Sheet	Identical Assets or		Observable Inputs		Unobservable		July 31, 2011		April 30, 2011
Location	Liabilities (Level 1)		(Level 2)		Inputs (Level 3)		Total		Total
Liabilities:
Acquisition-related
contingent consideration	$	-	$	-	$	1,049,011	$	1,049,011	$	1,008,200

Following the first year contingent payment, and the recording of $43,068 of additional non-cash expense for the three months ended July 31, 2011 for the change in the fair value of the contingent consideration from the present value of the future payments of this obligation, the fair value of the acquisition-related contingent consideration was $1,049,011 as of July 31, 2011. The Level 3 measurements included an estimated discount rate of 18.02%, future revenue growth rate of 10%, earnings before interest and taxes (EBIT) margins ranging from 7.5% to 13.32%, and weighted probability of EBIT achievement ranging from 0% to 100%.