Stockholders' Equity

12 Months Ended

Apr. 30, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

Note 11.Stockholders’ Equity

Preferred Stock

In June 2011, the Company issued through a private placement 1,666,667 shares of preferred stock to a group of related party institutional investors at a price of $2.40 per share for a total of $4.0 million.The preferred stock will automatically convert on a 1-for-1 basis into shares of common stock of the Company upon the earlier of the second anniversary of the financing, June 30, 2013, or the date on which the Company’s common stock has an average closing price above $4.00 per share during the preceding 30 trading days. The preferred stock includes an annual dividend of 10% payable in cash or stock at the Company’s option.The preferred stock has no other provisions or preferences.During fiscal year 2012, the Company paid $334,247 in preferred stock dividends ($0.20 per preferred share).As of April 30, 2012, the Company had no accrued preferred stock dividends.

The Company may issue up to 7,931,370 shares of preferred stock in one or more series upon authorization by its board of directors. The board of directors, without further approval of the stockholders, is authorized to fix the dividend rights and terms, conversion rights, voting rights, redemption rights and terms, liquidation preferences, and any other rights, preferences, privileges and restrictions applicable to each series of preferred stock.

Stock Option Plan

In fiscal 2011 the Company’s shareholders approved the 2010 Stock Plan (the “2010 Stock Plan”).Under the 2010 Stock Plan the Company may make awards to issue up to 1,500,000 shares of common stock to eligible employees, consultants and directors. Stock options granted under the 2010 Stock Plan generally vest over four years, are exercisable to the extent vested and expire 10 years from the date of grant. Under the 2010 Stock Plan the Company may grant options at prices not less than the fair market value at the date of grant.Under the 2001 Stock Option Plan (the “2001 Option Plan”) which expired as of September 2010, the Company was able to grant options to eligible employees, directors, and consultants at prices not less than the fair market value at the date of grant for incentive stock options and not less than 85% of the fair market value at the date of grant for non-statutory stock options. Options granted under the 2001 Option Plan generally vest over four years, are exercisable to the extent vested, and expire 10 years from the date of grant.

A summary of stock option activity is as follows:

			Weighted-
			average
	Number of		exercise
	shares		price
Outstanding at April 30, 2009	1,075,804	$	3.93
Granted (weighted-average fair value of $2.84)	705,300		2.84
Exercised	(7,911)		1.59
Cancelled/expired	(109,696)		6.07
Outstanding at April 30, 2010	1,663,497		3.34
Granted (weighted-average fair value of $3.38)	656,100		3.38
Exercised	(16,000)		1.28
Cancelled/expired	(151,414)		3.15
Outstanding at April 30, 2011	2,152,183		3.38
Granted (weighted-average fair value of $2.38)	839,400		2.38
Exercised	(124,500)		1.40
Cancelled/expired	(234,968)		3.11
Outstanding at April 30, 2012	2,632,115		3.18

Additional information regarding options outstanding at April 30, 2012 is as follows:

	Options outstanding				Options exercisable
		Average		Weighted-			Weighted-
		remaining		average			average
	Number	contractual		exercise	Number		exercise
Range of exercise prices	outstanding	life (years)		price	outstanding		price
$1.10 - 1.90	77,343	4.74	$	1.69	62,394	$	1.66
1.92 - 1.92	370,500	9.17		1.92	83,481		1.92
1.94 - 2.55	251,575	5.48		2.41	211,044		2.47
2.60 - 2.60	420,799	7.01		2.60	314,663		2.60
2.65 - 2.86	85,800	1.12		2.74	80,591		2.74
2.90 - 2.90	378,200	9.01		2.90	129,794		2.90
3.00 - 3.15	275,391	8.24		3.07	123,735		3.08
3.18 - 3.46	15,800	5.78		3.38	12,973		3.40
3.56 - 3.56	290,200	8.01		3.56	165,082		3.56
3.57 - 6.70	466,507	5.97		5.48	443,322		5.55

Options to purchase 1,627,079 and 1,267,329 shares at weighted average exercise prices of $3.49 and $3.37 were exercisable at April 30, 2012 and 2011. At April 30, 2012, there were 472,909 shares reserved for future grants under the 2010 Stock Plan.

Restricted Stock

On May 1, 2002, the Company established the 2002 Director Restricted Stock Plan (“Director Restricted Stock Plan”) as part of a compensation program designed to attract and retain independent members for our board of directors. There were 96,138 shares of common stock awarded and outstanding under this plan on April 30, 2012.This plan was terminated on November 10, 2010 and no additional shares will be issued under this plan.

Warrants

The following table presents details of the Company’s outstanding warrants as of April 30, 2012:

Date of issuance	Number of warrants issued	Number of warrants outstanding		Exercise price	Expiration date
November 20, 2006	200,000	80,000	$	1.35	October 31, 2012
November 20, 2006	270,000	166,425		1.60	October 31, 2012
November 20, 2006	200,000	189,519		1.90	October 31, 2012
April 24, 2009	190,182	190,182		2.75	April 24, 2014
June 29, 2010	718,860	718,860		2.45	June 29, 2020