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Stock Compensation Information
 9 Months Ended
Jan. 31, 2015
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.  Stock-based compensation expense was comprised of the following (in thousands):     

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

January 31,

 

January 31,

 

 

2015

 

2014

 

2015

 

2014

Direct costs of revenue

$
3 

$
3 

$
10 

$
12 

Product development

 
2 

 
5 

 
6 

 
24 

Selling, general, and administrative

 
34 

 
30 

 
75 

 
94 

Total equity-based compensation

$
39 

$
38 

$
91 

$
130 

 

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:     

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

January 31,

 

 

 

2015

 

2014

 

Expected term (in years)

 
4.6 

 
4.0 

 

Risk-free interest rate

 
1.4 

%
0.9 

%

Volatility

 
76 

%
51 

%

Dividend yield

 

 -

 

 -

 

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

$
0.52 

$
0.47 

 

 

We calculate our expected term using the simplified method as the historical exercise data does not provide a reasonable basis upon which to estimate expected life due to operational and structural changes of the Company.  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 January 31, 2015, there was approximately $0.4 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 3.29 years.     

 

A summary of our stock option activity for the nine months ended January 31, 2015 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 

915,300 

 

 

 

 

 

 

Exercised

-

 

 

 

 

 

 

Cancelled/expired

(322,655)

 

 

 

 

 

 

Outstanding at January 31, 2015
1,847,274 

 
1.69 

 
7.78 

 

 -

Exercisable at January 31, 2015
773,916 

$
2.81 

 
5.33 

$

 -

    

(1) Aggregate intrinsic value is defined as the difference between the current market value and the exercise price. It 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 nine months ended January 31, 2015 and 2014. The total fair value of awards vested during the nine months ended January 31, 2015 and 2014 was $84 thousand and $0.2 million, respectively.  The total fair value of awards granted during the nine months ended January 31, 2015 and 2014 was $0.5 million and $0.2 million, respectively.