Stock Compensation Information

3 Months Ended

Jul. 31, 2014

Stock Compensation Information [Abstract]

Stock Compensation Information

7.Stock Compensation Information

Stock-based compensation expense is determined from the estimated fair value of stock-based awards at the date of grant and is recognized over the vesting period of the awards, net of estimated forfeitures.  For the three months ended July 31, 2014 and 2013, stock-based compensation expense was comprised of the following (in thousands):     

		Three Months Ended
		July 31,
		2014		2013
Direct costs of revenue	$	2	$	5
Product development		3		13
Selling, general, and administrative		22		35
Total equity-based compensation	$	27	$	53

We estimate the fair value of our stock-based awards using the Black-Scholes option pricing model. The Black-Scholes option pricing model incorporates various assumptions including expected term, interest rates and expected volatility. Changes in the assumptions can materially affect the fair value estimates and ultimately how much we recognize as stock-based compensation expense. The weighted-average input assumptions used and resulting fair values were as follows:     

		Three Months Ended
		July 31,
		2014		2013
Expected term (in years)		4.0		4.0
Risk-free interest rate		1.3	%	0.8	%
Volatility		74	%	57	%
Dividend yield		-		-
Weighted-average fair value of stock options granted during the period	$	0.68	$	0.50

We base our expected term assumption on our historical experience and on the terms and conditions of the stock awards we grant to employees. The risk-free interest rate is based upon United States Treasury interest rates appropriate for the expected term of the awards. The expected volatility is based on the historical volatility of our common stock over the most recent period commensurate with the estimated expected term of our stock options. We did not pay cash dividends to common stockholders in fiscal 2014 or year to date in fiscal 2015, and do not anticipate paying any cash dividends on common stock in the foreseeable future. Accordingly, an expected dividend yield of zero is used in the Black-Scholes option pricing model.   

At July 31, 2014, there was approximately $0.3 million of unrecognized compensation expense related to unvested stock-based awards granted. The unrecognized expense is expected to be recognized over a weighted-average period of 3.2years.     

A summary of our stock option activity for the three months ended July 31, 2014 is as follows:    

			Weighted-	Weighted-
			average	average remaining		Aggregate
			exercise	contractual		intrinsic
	Shares		price	term (in years)		value (1)
Outstanding at April 30, 2014	1,254,629	$	2.38	6.82	$	41,972
Granted	196,922
Exercised	-
Cancelled/expired	(97,398)
Outstanding at July 31, 2014	1,354,153		2.26	6.92		14,612
Exercisable at July 31, 2014	882,961	$	2.80	5.76	$	2,631

(1) Aggregate intrinsic value is defined as the difference between the current market value and the exercise price and is estimated using the closing price of our common stock on the last trading day of the periods ended as of the dates indicated.

There were no awards exercised during the three months ended July 31, 2014and 2013. The total fair value of awards vested during the three months ended July 31, 2014and 2013 was $27 thousand and $53 thousand, respectively.  The total fair value of awards granted during the three months ended July 31, 2014and 2013 was $0.1 million and $0.1 million, respectively.