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Stock Compensation Information
 6 Months Ended
Oct. 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 and six months ended October 31, 2014 and 2013, stock-based compensation expense was comprised of the following (in thousands):     

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

October 31,

 

October 31,

 

 

2014

 

2013

 

2014

 

2013

Direct costs of revenue

$
4 

$
4 

$
6 

$
9 

Product development

 
2 

 
6 

 
5 

 
19 

Selling, general, and administrative

 
19 

 
29 

 
41 

 
64 

Total equity-based compensation

$
25 

$
39 

$
52 

$
92 

 

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:     

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

October 31,

 

 

 

2014

 

2013

 

Expected term (in years)

 
4.0 

 
4.0 

 

Risk-free interest rate

 
1.3 

%
0.9 

%

Volatility

 
74 

%
52 

%

Dividend yield

 

 -

 

 -

 

Weighted-average fair value of stock options granted during the period

$
0.68 

$
0.49 

 

 

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 October 31, 2014, there was approximately $0.2 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 3.24 years.     

 

A summary of our stock option activity for the six months ended October 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 

201,922 

 

 

 

 

 

 

Exercised

-

 

 

 

 

 

 

Cancelled/expired

(307,255)

 

 

 

 

 

 

Outstanding at October 31, 2014
1,149,296 

 
2.32 

 
6.68 

 

 -

Exercisable at October 31, 2014
769,779 

$
2.86 

 
5.48 

$

 -

    

(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 six months ended October 31, 2014 and 2013. The total fair value of awards vested during the six months ended October 31, 2014 and 2013 was $0.05 million and $0.1 million, respectively.  The total fair value of awards granted during the six months ended October 31, 2014 and 2013 was $0.1 million, respectively.