Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Jul. 29, 2014 | Oct. 31, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'Dataram Corporation | ' | ' |
Entity Central Index Key | '0000027093 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Apr-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--04-30 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $6,484,277 |
Entity Common Stock, Shares Outstanding | ' | 2,410,512 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $258,000 | $324,000 |
Accounts receivable, less allowance for doubtful accounts and sales returns of $220 at April 30, 2014 and $200 at April 30, 2013 | 3,663,000 | 2,885,000 |
Inventories: | ' | ' |
Raw materials | 1,576,000 | 1,425,000 |
Work in process | 64,000 | 89,000 |
Finished goods | 651,000 | 1,389,000 |
Inventory, net | 2,291,000 | 2,903,000 |
Note receivable | ' | 275,000 |
Other current assets | 7,000 | 81,000 |
Total current assets | 6,219,000 | 6,468,000 |
Property and equipment: | ' | ' |
Machinery and equipment | 451,000 | 11,733,000 |
Leasehold improvements | 608,000 | 608,000 |
Property and equipment, gross | 1,059,000 | 12,341,000 |
Less: accumulated depreciation and amortization | 840,000 | 11,916,000 |
Net property and equipment | 219,000 | 425,000 |
Other assets | 51,000 | 56,000 |
Intangible assets, net of accumulated amortization | ' | 133,000 |
Goodwill | 1,083,000 | 1,083,000 |
Total assets | 7,572,000 | 8,165,000 |
Current liabilities: | ' | ' |
Note payable-revolving credit line | 2,970,000 | 1,876,000 |
Accounts payable | 1,438,000 | 948,000 |
Accrued liabilities | 929,000 | 684,000 |
Due to related party - current portion | ' | 400,000 |
Total current liabilities | 5,337,000 | 3,908,000 |
Due to related party - long term | ' | 1,267,000 |
Other liabilities | 250,000 | ' |
Total liabilities | 5,587,000 | 5,175,000 |
Stockholders' equity: | ' | ' |
Common stock, par value $1.00 per share. Authorized 54,000,000 shares and 2,410,512 issued and outstanding at April 30, 2014 and 1,754,662 issued and outstanding on April 30, 2013 | 2,411,000 | 1,755,000 |
Additional paid-in capital | 20,236,000 | 19,288,000 |
Accumulated deficit | -20,662,000 | -18,053,000 |
Total stockholders' equity | 1,985,000 | 2,990,000 |
Total liabilities and stockholders' equity | $7,572,000 | $8,165,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts and sales returns | $220,000 | $200,000 |
Common stock, par value | $1 | $1 |
Common stock, authorized shares | 54,000,000 | 9,000,000 |
Common stock, issued shares | 2,410,512 | 1,754,662 |
Common stock, outstanding shares | 2,410,512 | 1,754,662 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Income Statement [Abstract] | ' | ' | ' |
Revenues | $30,399,000 | $27,616,000 | $36,079,000 |
Costs and expenses: | ' | ' | ' |
Cost of sales | 24,353,000 | 22,042,000 | 27,509,000 |
Engineering | 1,186,000 | 715,000 | 740,000 |
Selling, general and administrative | 7,181,000 | 8,700,000 | 12,324,000 |
Impairment of goodwill | ' | 438,000 | ' |
Impairment of capitalized software | ' | ' | 2,387,000 |
Total costs and expenses | 32,720,000 | 31,895,000 | 42,960,000 |
Loss from operations | -2,321,000 | -4,279,000 | -6,881,000 |
Interest income | ' | 22,000 | ' |
Interest expense | 306,000 | 311,000 | 386,000 |
Currency gain (loss) | 18,000 | -52,000 | -65,000 |
Other income | ' | ' | 4,078,000 |
Total other income (expense) | -288,000 | -341,000 | 3,627,000 |
Loss before income tax expense | -2,609,000 | -4,620,000 | -3,254,000 |
Income tax expense | ' | 5,000 | 5,000 |
Net loss | ($2,609,000) | ($4,625,000) | ($3,259,000) |
Net loss per common share | ' | ' | ' |
Basic | ($1.30) | ($2.60) | ($1.84) |
Diluted | ($1.30) | ($2.60) | ($1.84) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($2,609,000) | ($4,625,000) | ($3,259,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Depreciation and amortization | 300,000 | 443,000 | 660,000 |
Bad debt expense | 186,000 | 57,000 | 14,000 |
Stock-based compensation expense | 43,000 | 231,000 | 451,000 |
Gain on sale of property and equipment | -139,000 | ' | ' |
Impairment of goodwill | ' | 438,000 | ' |
Impairment of software development cost | ' | ' | 2,387,000 |
Gain on sale of patents | ' | ' | -4,078,000 |
Changes in assets and liabilities: | ' | ' | ' |
Decrease (increase) in accounts and notes receivable | -689,000 | -337,000 | 2,011,000 |
Decrease in inventories | 612,000 | 29,000 | 2,530,000 |
Decrease (increase) in other current assets | 74,000 | 34,000 | 12,000 |
Decrease (increase) in other assets | 5,000 | -1,000 | 56,000 |
Increase (decrease) in accounts payable | 491,000 | -69,000 | -1,928,000 |
Increase (decrease) in accrued liabilities | 172,000 | -82,000 | -74,000 |
Net cash used in operating activities | -1,554,000 | -3,882,000 | -1,218,000 |
Cash flows from investing activities: | ' | ' | ' |
Acquisition of business | ' | -68,000 | -211,000 |
Additions to property and equipment | ' | -6,000 | -232,000 |
Software development costs | ' | ' | -907,000 |
Proceeds from sale of property and equipment | 500,000 | ' | ' |
Proceeds from sale of patents | ' | ' | 4,078,000 |
Issuance of note receivable | ' | -275,000 | ' |
Net cash provided by (used in) investing activities | 500,000 | -349,000 | 2,728,000 |
Cash flows from financing activities: | ' | ' | ' |
Net borrowings (repayments) under revolving credit line | 1,094,000 | 1,755,000 | -2,033,000 |
Net proceeds (payments) from related party note payable | -1,667,000 | -333,000 | 500,000 |
Net proceeds from sale of common stock | 1,561,000 | ' | 2,998,000 |
Purchase of treasury stock | ' | -142,000 | -45,000 |
Net cash provided by financing activities | 988,000 | 1,280,000 | 1,420,000 |
Net (decrease) increase in cash and cash equivalents | -66,000 | -2,951,000 | 2,930,000 |
Cash and cash equivalents at beginning of year | 324,000 | 3,275,000 | 345,000 |
Cash and cash equivalents at end of year | 258,000 | 324,000 | 3,275,000 |
Supplemental disclosure of non-cash financing activities: | ' | ' | ' |
Borrowings from and repayment to related party | ' | ' | 1,500,000 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Cash paid during the period for interest | 324,000 | 226,000 | 365,000 |
Cash paid during the period for income taxes | ' | $5,000 | $5,000 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Common Stock | Treasury Stock | Additional paid-in capital | Accumulated deficit | Total |
Beginning balance at Apr. 30, 2011 | $1,488,000 | ' | $16,062,000 | ($10,169,000) | $7,381,000 |
Beginning balance (shares) at Apr. 30, 2011 | 1,488 | ' | ' | ' | ' |
Net loss | ' | ' | ' | -3,259,000 | -3,259,000 |
Stock based compensation expense | ' | ' | 451,000 | ' | 451,000 |
Issuance of shares under registered direct offering (shares) | 296 | ' | ' | ' | ' |
Issuance of shares under registered direct offering | 296,000 | ' | 2,702,000 | ' | 2,998,000 |
Treasury stock purchased | ' | -45,000 | ' | ' | -45,000 |
Ending balance at Apr. 30, 2012 | 1,748,000 | -45,000 | 19,215,000 | -13,428,000 | ' |
Ending balance (shares) at Apr. 30, 2012 | 1,748 | ' | ' | ' | ' |
Net loss | ' | ' | ' | -4,625,000 | -4,625,000 |
Stock based compensation expense | ' | ' | 231,000 | ' | 231,000 |
Treasury stock purchased and cancelled (shares) | -129 | ' | ' | ' | ' |
Treasury stock purchased and cancelled | -129,000 | 45,000 | -158,000 | ' | -142,000 |
Ending balance at Apr. 30, 2013 | 1,755,000 | ' | 19,288,000 | -18,053,000 | 2,990,000 |
Ending balance (shares) at Apr. 30, 2013 | 1,755 | ' | ' | ' | ' |
Net loss | ' | ' | ' | -2,609,000 | -2,609,000 |
Stock based compensation expense | ' | ' | 43,000 | ' | 43,000 |
Issuance of shares under registered direct offering (shares) | 656 | ' | ' | ' | ' |
Issuance of shares under registered direct offering | 656,000 | ' | 905,000 | ' | 1,561,000 |
Ending balance at Apr. 30, 2014 | $2,411,000 | ' | $20,236,000 | ($20,662,000) | $1,985,000 |
Ending balance (shares) at Apr. 30, 2014 | 2,411 | ' | ' | ' | ' |
Description_of_Business_and_Si
Description of Business and Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Description of Business and Significant Accounting Policies | ' | ||||||||||||||||||||
(1) Description of Business and Significant Accounting Policies | |||||||||||||||||||||
Dataram Corporation (“the Company”) is a developer, manufacturer and marketer of large capacity memory products primarily used in high-performance network servers and workstations. The Company provides customized memory solutions for original equipment manufacturers (OEMs) and compatible memory for leading brands including Dell, HP, IBM and Sun Microsystems. Additionally, the Company manufactures a line of memory products for Intel and AMD motherboard based servers. The Company has developed and currently markets a line of high-performance storage caching products. | |||||||||||||||||||||
The Company’s memory products are sold worldwide to OEMs, distributors, value-added resellers and end-users. The Company has one leased manufacturing facility in the United States with sales offices in the United States, Europe and Japan. | |||||||||||||||||||||
The Company is an independent memory manufacturer specializing in high-capacity memory and competes with several other large independent memory manufacturers as well as the OEMs mentioned above. The primary raw material used in producing memory boards is dynamic random access memory (DRAM) chips. The purchase cost of DRAMs is the largest single component of the total cost of a finished memory board. Consequently, average selling prices for computer memory boards are significantly dependent on the pricing and availability of DRAM chips. | |||||||||||||||||||||
Liquidity and Basis of Presentation | |||||||||||||||||||||
The Company's financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. For the fiscal years ended April 30, 2014, 2013 and 2012, the Company incurred losses in the amounts of approximately $2,609,000, $4,625,000 and $3,259,000, respectively. Net cash used in operating activities totaled approximately $1,554,000, $3,882,000 and $1,218,000 for the fiscal years ended April 30, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
Our continuation as a going concern is dependent upon obtaining the additional working capital necessary to sustain our operations. Our future is dependent upon our ability to obtain financing, raise capital through the sales of equity and or debt securities and upon future profitable operations. There is no assurance that our current operations will be profitable or we will raise sufficient funds to continue operating. The Company continues to seek out opportunities to trim overhead expenses to meet revenues. | |||||||||||||||||||||
If current and projected revenue growth does not meet estimates, the Company may continue to choose to raise additional capital through debt and/or equity transactions, reduce certain overhead costs through the deferral of salaries and other means, and settle liabilities through negotiation. Currently, the Company does not have any commitments or assurances for additional capital, nor can the Company provide assurance that such financing will be available to it on favorable terms, or at all. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event we cannot continue in existence. | |||||||||||||||||||||
Stock Split | |||||||||||||||||||||
On January 31, 2013, the Company filed a proxy statement with the Securities and Exchange Commission for the purpose of calling a special meeting of its stockholders. The Board of Directors asked the stockholders to approve the Board’s action in effecting a reverse split of its Common Stock at a ratio of no less than 1 for 3 and no greater than 1 for 6. The meeting was held at the Company’s offices on March 13, 2013. The stockholders approved the action and immediately following the meeting, the Board of Directors voted to affect a reverse split of its common stock at the ratio of 1 for 6. The split shares were effective with the opening of trading on March 15, 2013. Relevant financial data has been adjusted in this report to reflect the 1 for 6 reverse stock split. | |||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. | |||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||
Cash and cash equivalents consist of unrestricted cash and money market accounts. | |||||||||||||||||||||
Accounts Receivable | |||||||||||||||||||||
Accounts receivable consist of the following: | |||||||||||||||||||||
April 30, | April 30, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Trade receivables | $ | 3,758,000 | $ | 2,962,000 | |||||||||||||||||
VAT receivable | 125,000 | 123,000 | |||||||||||||||||||
Allowance for doubtful accounts and sales returns | (220,000 | ) | (200,000 | ) | |||||||||||||||||
$ | 3,663,000 | $ | 2,885,000 | ||||||||||||||||||
Inventories | |||||||||||||||||||||
Inventories, consisting of materials, labor and manufacturing overhead, are stated at the lower of cost or market, with cost determined by the first-in, first-out method. | |||||||||||||||||||||
Property and Equipment | |||||||||||||||||||||
Property and equipment is recorded at cost. Depreciation is computed on the straight-line basis. Depreciation and amortization rates are based on the estimated useful lives, which range from two to five years for machinery and equipment and five to six years for leasehold improvements. When property or equipment is retired or otherwise disposed of, related costs and accumulated depreciation and amortization are removed from the accounts. Depreciation and amortization expense related to property and equipment for the fiscal years ended April 30, 2014, 2013 and 2012 totaled $167,000, $279,000 and $496,000, respectively. | |||||||||||||||||||||
Repair and maintenance costs are charged to operations as incurred. | |||||||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||
Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | |||||||||||||||||||||
Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheets and reported at the lower of the carrying amount or fair value less cost to sell, and no longer depreciated. The Company considers various valuation factors, principally undiscounted cash flows, to assess the fair values of long-lived assets. | |||||||||||||||||||||
Goodwill and Intangible Assets | |||||||||||||||||||||
Goodwill: | |||||||||||||||||||||
Goodwill – The carrying value of goodwill is not amortized, but is tested annually as of March 31 as well as whenever events or changes in circumstances indicate that the carrying amount may not be recoverable using a two-step process. Based on a combination of factors that occurred in the fourth quarter of fiscal 2013, including the operating results of the MMB business unit, management concluded that a goodwill impairment triggering event had occurred. Accordingly, the Company performed a testing of the carrying value of $1,519,000 of goodwill for MMB using a discounted cash flow model to estimate the fair value of the reporting unit. After this testing, management concluded that the carrying value of the MMB business unit exceeded the fair value of this reporting unit. The implied fair value of the goodwill of the MMB business unit was calculated by allocating the fair values of substantially all of its individual assets, liabilities and identified intangible assets as if MMB business unit had been acquired in a business combination. As a result, the Company recorded a non-cash goodwill impairment charge of $438,000 in fiscal year ended April 30, 2013. As of April 30, 2014, management has concluded that no additional impairment of goodwill is required. | |||||||||||||||||||||
The following table outlines the changes in goodwill for the year ended April 30, 2014: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Opening balance May 1 | $ | 1,083,000 | $ | 1,453,000 | |||||||||||||||||
Contingent purchase price | — | 68,000 | |||||||||||||||||||
Impairment charge | — | (438,000 | ) | ||||||||||||||||||
Goodwill balance April 30 | $ | 1,083,000 | $ | 1,083,000 | |||||||||||||||||
Intangible Assets: | |||||||||||||||||||||
Intangible assets with determinable lives, other than customer relationships, are amortized on a straight-line basis over their estimated period of benefit, ranging from four to five years. Customer relationships are amortized over a two-year period at a rate of 65% of the gross value acquired in the first year subsequent to their acquisition and 35% of the gross value acquired in the second year. The Company evaluates the recoverability of intangible assets periodically and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. | |||||||||||||||||||||
All of the Company’s intangible assets with definitive lives are subject to amortization. During the third quarter of the fiscal year ended April 30, 2012, the XcelaSAN product was available for general release and generated approximately $8,000 of revenue, which was significantly lower than expected. The Company determined in the fiscal year ended April 30, 2012’s third quarter based on the estimated future net realizable value for the expected periods of benefit that the carrying value of capitalized software development cost was impaired. As such, approximately $2,387,000 of capitalized software development cost was written down to zero. | |||||||||||||||||||||
The Company estimates that it has no significant residual value related to its intangible assets. Intangible assets amortization expense was $133,000 for fiscal year ended April 30, 2014, $164,000 for the fiscal year ended April 30, 2013 and $164,000 for the fiscal year ended April 30, 2012. As of April 30, 2013, the components of intangible assets acquired are as follows: | |||||||||||||||||||||
Gross | Weighted | Net | |||||||||||||||||||
Carrying | Average | Accumulated | Carrying | ||||||||||||||||||
Amount | Life | Amortization | Amount | ||||||||||||||||||
Customer relationships | $ | 758,000 | 2 Years | $ | 758,000 | $ | 0 | ||||||||||||||
Trade names | 733,000 | 5 Years | 733,000 | 0 | |||||||||||||||||
Non-compete agreement | 68,000 | 4 Years | 68,000 | 0 | |||||||||||||||||
$ | 1,559,000 | $ | 1,559,000 | $ | 0 | ||||||||||||||||
As of April 30, 2013, the components of finite-lived intangible assets acquired were as follows: | |||||||||||||||||||||
Gross | Weighted | Net | |||||||||||||||||||
Carrying | Average | Accumulated | Carrying | ||||||||||||||||||
Amount | Life | Amortization | Amount | ||||||||||||||||||
Customer relationships | $ | 758,000 | 2 Years | $ | 758,000 | $ | 0 | ||||||||||||||
Trade names | 733,000 | 5 Years | 600,000 | 133,000 | |||||||||||||||||
Non-compete agreement | 68,000 | 4 Years | 68,000 | 0 | |||||||||||||||||
$ | 1,559,000 | $ | 1,426,000 | $ | 133,000 | ||||||||||||||||
Fair Value of Financial Instruments: | |||||||||||||||||||||
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 Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy. | |||||||||||||||||||||
The following table sets forth the assets and liabilities measured at fair value on a nonrecurring basis, by input level, in the consolidated balance sheets at April 30, 2014: | |||||||||||||||||||||
Quoted | Total | ||||||||||||||||||||
Prices in | Reduction | ||||||||||||||||||||
Active Markets for | Significant Other | Significant | in Fair value | ||||||||||||||||||
Balance Sheet | Identical Assets or | Observable Inputs | Unobservable | 30-Apr-14 | Recorded as of | ||||||||||||||||
Location | Liabilities (Level 1) | (Level 2) | Inputs (Level 3) | Total | 30-Apr-14 | ||||||||||||||||
Assets: | |||||||||||||||||||||
Goodwill | $ | — | $ | — | $ | 1,083,000 | $ | 1,083,000 | $ | (438,000 | ) | ||||||||||
Revenue Recognition | |||||||||||||||||||||
Revenue is recognized when title passes upon shipment of goods to customers. The Company’s revenue earning activities involve delivering or producing goods. The following criteria are met before revenue is recognized: persuasive evidence of an arrangement exists, shipment has occurred, selling price is fixed or determinable and collection is reasonably assured. The Company does experience a minimal level of sales returns and allowances for which the Company accrues a reserve at the time of sale. Estimated warranty costs are accrued by management upon product shipment based on an estimate of future warranty claims. | |||||||||||||||||||||
Engineering and Research and Development | |||||||||||||||||||||
Research and development costs are expensed as incurred, including Company-sponsored research and development and costs of patents and other intellectual property that have no alternative future use when acquired and in which we had an uncertainty of receiving future economic benefits. Development costs of a computer software product to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. Technological feasibility of a computer software product is established when all planning, designing, coding and testing activities that are necessary to establish that the product can be produced to meet its design specifications (including functions, features and technical performance requirements) are completed. The Company had been developing computer software for its XcelaSAN storage caching product line. On November 4, 2010, the Company determined that technological feasibility of the product was established, and development costs subsequent to that date have been capitalized. Prior to November 4, 2010, the Company expensed all development costs related to this product line. In the third quarter of fiscal year ended April 30, 2012 when the product was made available for general release to customers, the Company discontinued capitalizing development costs. | |||||||||||||||||||||
During the third quarter of the fiscal year ended April 30, 2012, the XcelaSAN product was available for general release and generated approximately $8,000 of revenue, which was significantly lower than expected. The Company determined in the fiscal year ended April 30, 2012’s third quarter based on the estimated future net realizable value for the expected periods of benefit that the carrying value of capitalized software development cost was impaired. As such, approximately $2,387,000 of capitalized software development cost was written down to zero. | |||||||||||||||||||||
Advertising | |||||||||||||||||||||
Advertising is expensed as incurred and amounted to $139,000, $77,000 and $223,000 in the fiscal years ended April 30, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
Income Taxes | |||||||||||||||||||||
The Company utilizes the asset and liability method of accounting for income taxes in accordance with the provisions of the Expenses – Income Taxes Topic of the FASB ASC. Under the asset and liability method, deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The Company considers certain tax planning strategies in its assessment as to the recoverability of its tax assets. Deferred income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in earnings in the period that the tax rate changes. The Company recognizes, in its consolidated financial statements, the impact of a tax position, if that position is more likely than not to be sustained on audit, based on the technical merits of the position. There are no material unrecognized tax positions in the financial statements. | |||||||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents in financial institutions and brokerage accounts. To the extent that such deposits exceed the maximum insurance levels, they are uninsured. The Company performs ongoing evaluations of its customers’ financial condition, as well as general economic conditions and, generally, requires no collateral from its customers. At April 30, 2014 and 2013, amounts due from one customer totaled approximately 30% and 19%, respectively, of accounts receivable. | |||||||||||||||||||||
In fiscal years ended April 30, 2014, 2013 and 2012, the Company had sales to one customer that accounted for approximately 15%, 9% and 11%, respectively, of revenues. | |||||||||||||||||||||
Net Income (Loss) Per Share | |||||||||||||||||||||
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is calculated in a manner consistent with basic net income (loss) per share except that the weighted average number of common shares outstanding also includes the dilutive effect of stock options outstanding (using the treasury stock method). | |||||||||||||||||||||
The following presents a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share. All amounts shown have adjusted to reflect the reverse 6-for-1 stock split effective March 18, 2013. | |||||||||||||||||||||
Year ended April 30, 2014 | |||||||||||||||||||||
Loss | Shares | Per share | |||||||||||||||||||
(numerator) | (denominator) | amount | |||||||||||||||||||
Basic net loss per share-net loss and weighted average common shares outstanding | $ | (2,609,000 | ) | 1,999,856 | $ | (1.30 | ) | ||||||||||||||
Effect of dilutive securities-stock options | — | — | — | ||||||||||||||||||
Diluted net loss per share -net loss weighted average common shares outstanding and effect of stock options | $ | (2,609,000 | ) | 1,999,856 | $ | (1.30 | ) | ||||||||||||||
Year ended April 30, 2013 | |||||||||||||||||||||
Loss | Shares | Per share | |||||||||||||||||||
(numerator) | (denominator) | amount | |||||||||||||||||||
Basic net loss per share-net loss and weighted average common shares outstanding | $ | (4,625,000 | ) | 1,776,796 | $ | (2.60 | ) | ||||||||||||||
Effect of dilutive securities-stock options | — | — | — | ||||||||||||||||||
Diluted net loss per share-net loss weighted average common shares outstanding | $ | (4,625,000 | ) | 1,776,796 | $ | (2.60 | ) | ||||||||||||||
and effect of stock options | |||||||||||||||||||||
Year ended April 30, 2012 | |||||||||||||||||||||
Loss | Shares | Per share | |||||||||||||||||||
(numerator) | (denominator) | amount | |||||||||||||||||||
Basic net loss per share-net loss and weighted average common shares outstanding | $ | (3,259,000 | ) | 1,770,952 | $ | (1.84 | ) | ||||||||||||||
Effect of dilutive securities-stock options | — | — | — | ||||||||||||||||||
Diluted net loss per share-net loss, weighted average common shares outstanding | $ | (3,259,000 | ) | 1,770,952 | $ | (1.84 | ) | ||||||||||||||
and effect of stock options | |||||||||||||||||||||
Diluted net loss per common share does not include the effect of options to purchase 272,580, 319,908 and 299,317 shares of Common Stock for the years ended April 30, 2014, 2013 and 2012, respectively, because they are anti-dilutive. Diluted net loss per common share for the years ended April 30, 2014, 2013 and 2012 also does not include the effect of warrants to purchase 485,775, 221,875 and 221,875 shares, respectively, because they are anti-dilutive. | |||||||||||||||||||||
Product Warranty | |||||||||||||||||||||
The majority of the Company’s products are intended for single use; therefore, the Company requires limited product warranty accruals. The Company accrues estimated product warranty cost at the time of sale and any additional amounts are recorded when such costs are probable and can be reasonably estimated. | |||||||||||||||||||||
Balance | Charges to | Balance | |||||||||||||||||||
Beginning | Costs and | End | |||||||||||||||||||
of Year | Expenses | Deductions | of Year | ||||||||||||||||||
Year Ended April 30, 2014 | $ | 69,000 | $ | 9,000 | $ | (9,000 | ) | $ | 69,000 | ||||||||||||
Year Ended April 30, 2013 | $ | 79,000 | $ | 14,000 | $ | (24,000 | ) | $ | 69,000 | ||||||||||||
Year Ended April 30, 2012 | $ | 79,000 | $ | 6,000 | $ | (6,000 | ) | $ | 79,000 | ||||||||||||
Use of Estimates | |||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including deferred tax asset valuation allowances and certain other reserves and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Some of the more significant estimates made by management include the allowance for doubtful accounts and sales returns, the deferred income tax asset valuation allowance and other operating allowances and accruals. Actual results could differ from those estimates. | |||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||
At April 30, 2014, the Company has stock-based employee and director compensation plans, which are described more fully in Note 6. New shares of the Company’s Common Stock are issued upon exercise of stock options. | |||||||||||||||||||||
The accounting for transactions in which an enterprise receives employee services in exchange for (a) equity instruments of the enterprise or (b) liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments are accounted for using a fair value-based method with a recognition of an expense for compensation cost related to share-based payment arrangements, including stock options and employee stock purchase plans. | |||||||||||||||||||||
The Company’s consolidated statement of operations for fiscal year ended April 30, 2014 includes $43,000 of stock based compensation expense. Stock based compensation expense is recognized in the results of operations on a ratable basis over the vesting periods. These stock option grants have been classified as equity instruments, and as such, a corresponding increase has been reflected in additional paid-in capital in the accompanying balance sheet as of April 30, 2014. In fiscal 2013 and fiscal 2012, stock-based compensation expense totaled $231,000 and $451,000, respectively. A corresponding increase is reflected in additional paid-in capital for these years. The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option pricing model. | |||||||||||||||||||||
A summary of option activity for the fiscal year ended April 30, 2014 is as follows: | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Weighted | average | Aggregate | |||||||||||||||||||
average | remaining | intrinsic | |||||||||||||||||||
Shares | exercise price | contractual life | value(1) | ||||||||||||||||||
Balance April 30, 2013 | 311,575 | $ | 12.4 | 5.02 | $ | — | |||||||||||||||
Granted | — | $ | — | — | — | ||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||
Expired | (47,331 | ) | $ | 12.26 | — | — | |||||||||||||||
Balance April 30, 2014 | 264,244 | $ | 12.42 | 4.46 | $ | 6,250 | |||||||||||||||
Exercisable April 30, 2014 | 251,744 | $ | 12.91 | 4.23 | $ | 3,125 | |||||||||||||||
Expected to vest April 30, 2014 | 250,000 | $ | 12.42 | 4.46 | $ | 6,250 | |||||||||||||||
All amounts shown have adjusted to reflect the reverse 6-for-1 stock split effective March 18, 2013. | |||||||||||||||||||||
(1) These amounts represent the difference between the exercise price and the closing price of Dataram Common Stock as of the end of the reporting period, $2.69 on April 30, 2014 as reported on the NASDAQ Stock Market. There are 25,000 in-the-money options outstanding at April 30, 2014. | |||||||||||||||||||||
During fiscal 2014, 34,498 options completed vesting. As of April 30, 2014, there was approximately $14,000 of total unrecognized compensation expense related to stock options. This expense is expected to be recognized over a weighted average period of approximately six months. At April 30, 2014, 8,333 shares were authorized for future grant under the Company’s stock option plans. | |||||||||||||||||||||
The fair value of each stock option granted during the year is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected life (years) | — | 3.0 to 5.75 | 3.0 to 3.3 | ||||||||||||||||||
Expected volatility | — | 77% | 77% | ||||||||||||||||||
Expected dividend yield | — | — | — | ||||||||||||||||||
Expected forfeiture rate | — | 5.00% | 5.00% | ||||||||||||||||||
Risk-free interest rate | — | 0.5% to 0.6% | 0.5% to 0.6% | ||||||||||||||||||
Weighted average fair value of options granted during the year | — | $ | 0.9 | $ | 0.56 | ||||||||||||||||
The expected life represents the period that the Company’s stock-based awards are expected to be outstanding and was calculated using the simplified method pursuant to SEC Staff Accounting Bulletin (SAB) Nos. 107 and 110. Expected volatility is based on the historical volatility of the Company’s Common Stock using the daily closing price of the Company’s Common Stock, pursuant to SAB 107. Expected dividend yield assumes the current dividend rate remains unchanged. Expected forfeiture rate is based on the Company’s historical experience. The risk-free interest rate is based on the rate of U.S Treasury zero-coupon issues with a remaining term equal to the expected life of the option grants. |
Financing_Agreements
Financing Agreements | 12 Months Ended |
Apr. 30, 2014 | |
Notes to Financial Statements | ' |
Financing Agreements | ' |
(2) Financing Agreements | |
On July 27, 2010, the Company entered into an agreement with a financial institution for formula-based secured debt financing of up to $5,000,000. Borrowings were secured by substantially all assets. On March 2, 2012, the agreement was amended to reduce the amount available under the credit facility to $3,500,000. On May 17, 2012, the agreement was amended and restated. The amended and restated documents reduced the interest rate to prime plus 6%, subject to a minimum of 9.25% and also not less than $8,000 per month. The loan facility allowed borrowing of 90% of eligible domestic receivables. In addition, the loan facility allowed borrowing of 90% of eligible foreign receivables to a maximum of $500,000 and 25% of eligible inventory to a maximum of 20% of the amount available on receivables. On December 18, 2012, the agreement was amended in exchange for a fee of $7,500 to reduce the minimum Tangible Net Worth covenant to $1,300,000. As described below, on November 6, 2013, the Company entered into a new financing agreement (the “Financing Agreement”) with Rosenthal & Rosenthal, Inc., and simultaneously terminated the loan agreement with the financial institution and paid in full the outstanding balance and accrued interest with proceeds received from the Financing Agreement. | |
On December 14, 2011, the Company entered into a Note and Security Agreement with Mr. Sheerr. The agreement provided for secured financing of up to $2,000,000. The Company was obligated to pay monthly interest equal to 10% per annum calculated on a 360 day year of the outstanding loan balance. Principal was payable in sixty equal monthly installments, beginning on July 15, 2012. The Company had borrowed the full $2,000,000 available under this agreement. Principal amounts due under this obligation were $33,333 per month which began on July 15, 2012. | |
The Company amended and restated its Note and Security Agreement with Mr. Sheerr as of October 31, 2013; the Company sold certain equipment and furniture for a purchase price of $500,000 under a sale leaseback transaction to Mr. Sheerr. The Company used the proceeds of the purchase price received from Mr. Sheerr to reduce the remaining principal amount of the original loan by an amount equal to $500,000. The principal amount was reduced to approximately $966,667 at October 31, 2013. The Company was obligated to pay monthly interest equal to 10% per annum calculated on a 360 day year of the outstanding loan balance. Principal was payable in 29 equal monthly installments of $33,333, beginning on November 15, 2013 and subsequently on the 15th day of each month thereafter, until paid in full. On April 30, 2014 the note was paid in full. Interest expense recorded for the Note in the fiscal year ended April 30, 2014 was approximately $122,000. | |
As of October 31, 2013, the Company also entered into an agreement with Mr. Sheerr to leaseback the aforementioned equipment and furniture that was sold to Mr. Sheerr on October 31, 2013. The lease is for a term of 60 months and the Company is obligated to pay approximately $7,500 per month for the term of the lease. The Company has an option to extend the lease for an additional two year period. The transactions described have been accounted for as a sale-leaseback transaction. Accordingly, the Company recognized a gain on the sale of assets of approximately $139,000, which is the amount of the gain on sale in excess of present value of the future lease payments and will recognize the remaining approximately $322,000 in proportion to the related gross rental charged to expense over the term of the lease, 60 months. The current portion of $72,000 deferred gain is reflected in accrued liabilities and the long term portion of $250,000 is reflected in other liabilities long term in the consolidated balance sheet as of April 30, 2014. | |
On July 30, 2012, a Convertible Senior Promissory Note was executed by and between Shoreline Memory, Inc. (“Shoreline”) and the Company whereby the Company could lend up to $1,500,000 to Shoreline in exchange for interest payments at prime plus 3.0% and the right to convert the amount outstanding into Common Stock of Shoreline on or before its maturity date. Each time the Company advanced money under the note, the Company was granted 1% of the outstanding Common Stock of Shoreline for every $100,000 advanced up to a maximum of 15%. This was in addition to the 15% allowable under the conversion of the note and the warrant to acquire 30% of Shoreline Common Stock. The conversion is at the rate of 1% of the outstanding Common Stock for each $100,000 converted up to a maximum of 15%. This note had a maturity date of three years and at such time Shoreline would have had to repay the note or the Company would have had to convert the note into Common Stock. The note was secured by all the assets of Shoreline and Shoreline Capital Management Ltd. (“Shoreline Capital”) as guarantor. Also executed with the note was a warrant to purchase 30% of the outstanding Common Stock of Shoreline at the time of exercise and the warrant expires sixty days after the third anniversary of the closing of the transaction. The warrant prescribed a formula to determine the price per share at the time of exercise. If all the amounts under the note were advanced and converted and the full warrant was exercised, the Company would have owned 60% of the outstanding Common Stock of Shoreline. The note was executed simultaneously with a Master Services Agreement which details the parameters under which the Company and Shoreline would have fulfilled orders from Shoreline’s primary customer. On July 31, 2012, the Company advanced $375,000 under the note and an additional $375,000 on August 1, 2012. The purpose of the loan was to fund startup expenses and to prepay initial orders. On February 19, 2013, the Company received $50,000 from Shoreline and, on February 22, 2013, the Company received an additional $200,000 from Shoreline as a partial repayment of their loan. On March 27, 2013, the Company reached an agreement to terminate its relationship with Shoreline. At closing, the Company received an additional $225,000 as a partial repayment of the loan in connection with the termination of all agreements with Shoreline. The promissory note bears interest at the rate of 6% and is guaranteed by Shoreline Memory, Inc., Shoreline Capital Management Ltd and Trevor Folk. All agreements with Shoreline have been terminated with the exception of the amended and restated promissory note. The remaining $275,000 was scheduled to be repaid in accordance with the amended and restated promissory note on July 31, 2013. Shoreline Memory defaulted on the note. The Company fully reserved the $275,000 balance on the amended and restated promissory note at July 31, 2013. During fiscal 2014’s second quarter the Company agreed to settle the amount due on the defaulted note for approximately $162,000. The funds were received in escrow on October 31, 2013 and forwarded to the Company on November 1, 2013. | |
On November 6, 2013, the Company entered into a new financing agreement (the “Financing Agreement”) with Rosenthal & Rosenthal, Inc. to replace the existing loan agreement. The Financing Agreement provides for a revolving loan with a maximum borrowing capacity of $3,500,000. The loans under the Financing Agreement mature on November 30, 2016 unless such Financing Agreement is either earlier terminated or renewed. Loans outstanding under the Financing Agreement bear interest at a rate of the Prime Rate (as defined in the Financing Agreement) plus 3.25% (the “Effective Rate”) or on Over-advances (as defined in the Financing Agreement), if any, at a rate of the Effective Rate plus 3%. The Financing Agreement contains other financial and restrictive covenants, including, among others, covenants limiting our ability to incur indebtedness, guarantee obligations, sell assets, make loans, enter into mergers and acquisition transactions and declare or make dividends. Borrowings under the Financing Agreement are collateralized by substantially all the assets of the Company. On April 29, 2014, the Company entered into an amendment (the "Amendment") to the Financing Agreement. The Amendment provides for advances against inventory balances based on prescribed formulas of raw materials and finished goods. The maximum borrowing capacity remains at $3,500,000. Borrowings at April 30, 2014 totaled approximately $2,970,000 and there was no additional availability on that date. | |
The weighted average interest rate on amounts borrowed under these agreements at April 30, 2014 and 2013 was 9.4% and 9.7%, respectively. The average dollar amounts borrowed under these agreements for the fiscal years ended April 30, 2014, 2013 and 2012 were $3,327,000, $3,190,000 and $3,143,000, respectively. |
Securities_Purchase_Agreement
Securities Purchase Agreement | 12 Months Ended |
Apr. 30, 2014 | |
Notes to Financial Statements | ' |
Securities Purchase Agreement | ' |
(3) Securities Purchase Agreement | |
On May 11, 2011, the Company and certain investors entered into a securities purchase agreement in connection with a registered direct offering, pursuant to which the Company agreed to sell an aggregate of 295,833 shares of its Common Stock and warrants to purchase a total of 221,875 shares of its Common Stock to such investors for aggregate net proceeds of approximately $2,998,000. The Common Stock and warrants were sold in fixed combinations, with each combination consisting of one share of Common Stock and 0.75 of one warrant, with each whole warrant exercisable for one share of Common Stock. The purchase price was $11.28 per fixed combination. The warrants became exercisable six months and one day following the closing date of the offering and will remain exercisable for five years thereafter at an exercise price of $13.56 per share. The exercise price of the warrants is subject to adjustment in the case of stock splits, stock dividends, combinations of shares and similar recapitalization transactions. The exercisability of the warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99% of the Common Stock. After the one year anniversary of the initial exercise date of the warrants, the Company had the right to call the warrants for cancellation for $.006 per share in the event that the volume weighted average price of the Common Stock for 20 consecutive trading days exceeds $27.12. | |
On September 18, 2013, the Company and certain investors entered into a securities purchase agreement (the “Purchase Agreement”) in connection with the offering, pursuant to which the Company agreed to sell an aggregate of 350,931 shares of its common stock and warrants to purchase a total of 350,931 shares of its common stock to such investors for aggregate net proceeds, after deducting fees to the Placement Agent and other estimated offering expenses payable by the Company, of approximately $807,000. The common stock and warrants were sold in fixed combinations, with each combination consisting of one share of common stock and one warrant, with each warrant exercisable for one share of common stock. The purchase price was $2.30 per fixed combination. On September 23, 2013 the offering of 350,000 shares and warrants was closed with net proceeds to the Company of approximately $695,491 after accounting for all expenses of the offering. | |
On March 20, 2014, the Company and certain investors entered into a common stock purchase agreement (the “Purchase Agreement”) in connection with the offering, pursuant to which the Company agreed to sell an aggregate of 219,754 shares of its common stock to such investors for aggregate proceeds, after deducting fees to the Placement Agent and other estimated offering expenses payable by the Company, of approximately $559,000. The purchase price was $3.00 per share. | |
On March 20, 2014, holders of warrants issued in connection with the sale of common stock on September 18, 2013, exercised 86,100 of those warrants at the exercise price of $3.50 per share resulting in net proceeds of approximately $306,350. The exercise of these warrants resulted in the issuance of 86,100 shares of the Company’s common stock. | |
At April 30, 2014 the Company had 485,775 warrants outstanding. The exercise price of 221,875 warrants outstanding is $13.56 per warrant and the exercise price of 263,900 of warrants outstanding is $3.50 per warrant. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2014 | |
Notes to Financial Statements | ' |
Related Party Transactions | ' |
(4) Related Party Transactions | |
During the fiscal years ended April 30, 2014, 2013 and 2012, the Company purchased inventories for resale totaling approximately $3,144,000, $3,158,000 and $5,400,000, respectively, from Sheerr Memory, LLC (“Sheerr Memory”). Sheerr Memory’s owner (“Mr. Sheerr”) is employed by the Company as the general manager of the acquired MMB business unit and is an executive officer of the Company. When the Company acquired certain assets of MMB, it did not acquire any of its inventories. However, the Company informally agreed to purchase such inventory on an as needed basis, provided that the offering price was a fair market value price. The inventory acquired was purchased subsequent to the acquisition of MMB at varying times and consisted primarily of raw materials and finished goods used to produce products sold by the MMB business unit. Approximately $271,000 and $158,000 respectively, of accounts payable in the Company’s consolidated balance sheets as of April 30, 2014 and 2013 is payable to Sheerr Memory. Sheerr Memory offers the Company trade terms of net 30 days and all invoices are settled in the normal course of business. No interest is paid. The Company has made further purchases from Sheerr Memory subsequent to April 30, 2014 and management anticipates that the Company will continue to do so, although the Company has no obligation to do so. | |
During the fiscal years ended April 30, 2014, 2013 and 2012, the Company purchased inventories for resale totaling approximately $1,058,000, $564,000 and $290,000 respectively, from Keystone Memory Group (“Keystone Memory”). Keystone Memory’s owner is a relativeof Mr. Sheerr. Approximately $27,000 of accounts payable in the Company’s consolidated balance sheets as of April 30, 2014 is payable to Keystone Memory. At April 30, 2013 no monies were due Keystone Memory. Keystone Memory offers the Company trade terms of net due and all invoices are settled in the normal course of business. No interest is paid. The Company has made further purchases from Keystone Memory subsequent to April 30, 2014 and management anticipates that the Company will continue to do so, although the Company has no obligation to do so. | |
On December 14, 2011, the Company entered into a Note and Security Agreement with Mr. Sheerr. The agreement provided for secured financing of up to $2,000,000. The Company was obligated to pay monthly interest equal to 10% per annum calculated on a 360 day year of the outstanding loan balance. Principal was payable in sixty equal monthly installments, beginning on July 15, 2012. The Company had borrowed the full $2,000,000 available under this agreement. Principal amounts due under this obligation were $33,333 per month which began on July 15, 2012. | |
The Company amended and restated its Note and Security Agreement with Mr. Sheerr as of October 31, 2013; the Company sold certain equipment and furniture for a purchase price of $500,000 under a sale leaseback transaction to Mr. Sheerr. The Company used the proceeds of the purchase price received from Mr. Sheerr to reduce the remaining principal amount of the original loan by an amount equal to $500,000. The principal amount was reduced to approximately $966,667 at October 31, 2013. The Company was obligated to pay monthly, interest equal to 10% per annum calculated on a 360 day year of the outstanding loan balance. Principal was payable in 29 equal monthly installments of $33,333, beginning on November 15, 2013 and subsequently on the 15th day of each month thereafter, until paid in full. On April 30, 2014 the note was paid in full. Interest expense recorded for the Note in the fiscal years ended April 30, 2014, 2013 and 2012 was approximately $122,000, $187,000 and $178,000, respectively. | |
As of October 31, 2013, the Company also entered into an agreement with Mr. Sheerr to leaseback the aforementioned equipment and furniture that was sold to Mr. Sheerr on October 31, 2013. The lease is for a term of 60 months and the Company is obligated to pay approximately $7,500 per month for the term of the lease. The Company has an option to extend the lease for an additional two year period. The transactions described have been accounted for as a sale-leaseback transaction. Accordingly, the Company recognized a gain on the sale of assets of approximately $139,000, which is the amount of the gain on sale in excess of present value of the future lease payments and will recognize the remaining approximately $322,000 in proportion to the related gross rental charged to expense over the term of the lease, 60 months. The current portion of $72,000 deferred gain is reflected in accrued liabilities and the long term portion of $250,000 is reflected in other liabilities - long term in the consolidated balance sheet as of April 30, 2014. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
(5) Income Taxes | |||||||||||||
Income tax expense for the years ended April 30 consists of the following: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | — | 5,000 | 5,000 | ||||||||||
— | 5,000 | 5,000 | |||||||||||
Deferred: | |||||||||||||
Federal | — | — | — | ||||||||||
State | — | — | — | ||||||||||
— | — | — | |||||||||||
Total income tax expense | $ | — | $ | 5,000 | $ | 5,000 | |||||||
Income tax expense differs from “expected” tax expense (computed by applying the applicable U.S. statutory Federal income tax rate to earnings before income taxes) as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax at statutory rates | $ | (879,000 | ) | $ | (1,459,000 | ) | $ | (1,106,000 | ) | ||||
State income taxes (net of Federal income tax benefit) | (179,000 | ) | (249,000 | ) | (193,000 | ) | |||||||
Other | (105,000 | ) | 52,000 | (47,000 | ) | ||||||||
Total income tax expense (benefit) before provision for valuation allowance | (1,163,000 | ) | (1,656,000 | ) | (1,346,000 | ) | |||||||
Changes in valuation allowance | 1,163,000 | 1,661,000 | 1,351,000 | ||||||||||
Total income tax expense | $ | 0 | $ | 5,000 | $ | 5,000 | |||||||
The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Compensated absences and severance, principally due to accruals for financial reporting purposes | $ | 75,000 | $ | 150,000 | |||||||||
Stock-based compensation expense | 1,275,000 | 1,259,000 | |||||||||||
Accounts receivable, principally due to allowance for doubtful accounts and sales returns | 86,000 | 78,000 | |||||||||||
Property and equipment, principally due to differences in depreciation | 240,000 | 106,000 | |||||||||||
Intangible assets | 430,000 | 464,000 | |||||||||||
Inventories | 68,000 | 91,000 | |||||||||||
Domestic net operating losses | 10,134,000 | 9,089,000 | |||||||||||
Alternative minimum tax | 438,000 | 438,000 | |||||||||||
Other | 153,000 | 61,000 | |||||||||||
Net deferred tax assets | 12,899,000 | 11,736,000 | |||||||||||
Valuation allowance | (12,899,000 | ) | (11,736,000 | ) | |||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||
The Company recorded a valuation allowance of $1,163,000 and $1,661,000 for the fiscal years ended April 30, 2014 and 2013, respectively. Management believes sufficient uncertainty exists regarding the realization of the deferred tax asset items and that a valuation allowance is required. Management considers projected future taxable income and tax planning strategies in making this assessment. The amount of deferred tax assets considered realizable could materially change in the future if estimates of future taxable income change. | |||||||||||||
The Company has Federal and state net operating loss carry-forwards of approximately $25,600,000 and $24,000,000, respectively. These can be used to offset future taxable income and expire between 2023 and 2034 for Federal tax purposes and 2016 and 2034 for state tax purposes. | |||||||||||||
The Company adopted Financial Accounting Standards Board (“FASB”) guidance for accounting for uncertainty in income taxes on May 1, 2008. The implementation of this guidance did not result in a material adjustment to the Company’s liability for unrecognized income tax benefits. At the time of adoption and as of April 30, 2014, the Company currently was not and is not engaged in an income tax examination by any tax authority. The Company recognizes interest and penalties on unpaid taxes in its income tax expense. No interest or penalties were recognized during the Company’s fiscal years ended April 30, 2014, 2013 or 2012. The Company files income tax returns in the United States and in various states. The Company’s significant tax jurisdictions are the U.S. Federal, New Jersey and Pennsylvania. The tax years subsequent to 2009 remain open to examination by the taxing authorities. |
Stock_Options
Stock Options | 12 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Stock Options | ' | ||||||||||||
(6) Stock Options | |||||||||||||
The Company has a 2001 incentive and non-statutory stock option plan for the purpose of permitting certain key employees to acquire equity in the Company and to promote the growth and profitability of the Company by attracting and retaining key employees. In general, the plan allows granting of up to 300,000 shares of the Company’s Common Stock at an option price to be no less than the fair market value of the Company’s Common Stock on the date such options are granted. Currently, options granted under the plan vest ratably on the annual anniversary date of the grants. Vesting periods for options currently granted under the plan range from one to five years. At April 30, 2014, 239,246 of the outstanding options are exercisable. No further options may be granted under this plan. The Company also has a 2011 incentive and non-statutory stock option plan for the purpose of permitting certain key employees and consultants to acquire equity in the Company and to promote the growth and profitability of the Company by attracting and retaining key employees. No executive officer or director of the Company is eligible to receive options under the 2011 plan. In general, the plan allows granting of up to 33,333 shares of the Company’s Common Stock at an option price to be no less than the fair market value of the Company’s Common Stock on the date such options are granted. Options granted under the plan vest ratably on the annual anniversary date of the grants. There have been 25,000 shares granted under this plan. At April 30, 2014, 12,500 of the outstanding options are exercisable. | |||||||||||||
The status of these plans for the three years ended April 30, 2014 is as follows: | |||||||||||||
Options Outstanding | |||||||||||||
Exercise | Weighted | ||||||||||||
price | average | ||||||||||||
Shares | per share | exercise price | |||||||||||
Balance April 30, 2011 | 260,867 | $ 7.68-47.88 | $ | 16.72 | |||||||||
Granted | 48,000 | 6.36-6.72 | 6.59 | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (55,884 | ) | 6.72-47.88 | 21.67 | |||||||||
Balance April 30, 2012 | 252,983 | $ 6.36-24.54 | $ | 13.7 | |||||||||
Granted | 41,667 | 2.44-4.14 | 4.14 | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (14,408 | ) | 6.72-24.54 | 15.49 | |||||||||
Balance April 30, 2013 | 280,242 | $ 2.44-24.54 | $ | 12.04 | |||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (34,665 | ) | 6.72-24.54 | 10.41 | |||||||||
Balance April 30, 2014 | 245,577 | $ 2.44-19.20 | $ | 12.27 | |||||||||
All amounts shown have been adjusted to reflect the reverse 6-for-1 stock split effective March 18, 2013. | |||||||||||||
The Company periodically grants nonqualified stock options to non-employee directors of the Company. These options are granted for the purpose of retaining the services of directors who are not employees of the Company and to provide additional incentive for such directors to work to further the best interests of the Company and its shareholders. The options granted to these non-employee directors are exercisable at a price representing the fair value at the date of grant, and expire either five or ten years after date of grant. Vesting periods for options currently granted under the plan range from one to two years. At April 30, 2014, 18,667 of the outstanding options are exercisable. | |||||||||||||
The status of the non-employee director options for the three years ended April 30, 2014 is as follows: | |||||||||||||
Options Outstanding | |||||||||||||
Exercise | Weighted | ||||||||||||
price | average | ||||||||||||
Shares | per share | exercise price | |||||||||||
Balance April 30, 2011 | 47,333 | $ 11.94-47.88 | $ | 20.25 | |||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (9,333 | ) | 28.20-47.88 | 36.64 | |||||||||
Balance April 30, 2012 | 38,000 | $ 11.94-24.54 | $ | 16.23 | |||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (6,667 | ) | 17.94-19.98 | 19.16 | |||||||||
Balance April 30, 2013 | 31,333 | $ 11.94-24.54 | $ | 15.6 | |||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (12,666 | ) | 15.42-24.54 | 17.34 | |||||||||
Balance April 30, 2014 | 18,667 | $ 11.94-15.42 | $ | 14.43 | |||||||||
All amounts shown have adjusted to reflect the reverse 6-for-1 stock split effective March 18, 2013. | |||||||||||||
Other Stock Option Expense | |||||||||||||
During the first quarter of the fiscal year ended April 30, 2009, the Company granted options to purchase 8,333 shares of the Company’s Common Stock to a privately held company in exchange for certain patents and other intellectual property. The options granted are exercisable at a price representing the fair value at the date of grant, were 100% exercisable on the date of grant and expire ten years after the date of grant. The calculated fair value of these options was approximately $121,000 and was determined using the Black-Scholes option-pricing model. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
(7) Accrued Liabilities | |||||||||
Accrued liabilities consist of the following at April 30: | |||||||||
2014 | 2013 | ||||||||
Payroll, including vacation | $ | 226,000 | $ | 253,000 | |||||
Commissions | 75,000 | 60,000 | |||||||
Bonuses | 70,000 | 50,000 | |||||||
Lease abandonment | — | 100,000 | |||||||
Lease legal settlement | 225,000 | — | |||||||
Deferred gain on equipment sale | 72,000 | — | |||||||
Other | 261,000 | 221,000 | |||||||
$ | 929,000 | $ | 684,000 |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Commitments and Contingencies | ' | ||||||||||||
(8) Commitments and contingencies | |||||||||||||
Leases | |||||||||||||
The Company and its subsidiaries occupy various facilities and operate various equipment under operating lease arrangements. Rent charged to operations pursuant to such operating leases amounted to approximately $419,000 in 2014, $512,000 in 2013 and $516,000 in 2012. | |||||||||||||
Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of April 30, 2014 are as follows: | |||||||||||||
Year ending April 30: | Non-Related | Related | Total | ||||||||||
Party | Party | ||||||||||||
2015 | $ | 301,000 | $ | 90,000 | $ | 391,000 | |||||||
2016 | 293,000 | 90,000 | 383,000 | ||||||||||
2017 | 68,000 | 90,000 | 158,000 | ||||||||||
2018 | — | 90,000 | 90,000 | ||||||||||
2019 | — | 45,000 | 45,000 | ||||||||||
Thereafter | — | — | — | ||||||||||
Total | $ | 662,000 | $ | 405,000 | $ | 1,067,000 | |||||||
Purchases | |||||||||||||
At April 30, 2014, the Company had open purchase orders outstanding totaling $1,758,000 primarily for inventory items to be delivered in the first three months of the fiscal year ending April 30, 2015. These purchase orders are cancelable. | |||||||||||||
License Agreements | |||||||||||||
The Company has entered into certain licensing agreements with varying terms and conditions. The Company is obligated to pay royalties on certain of these agreements. Royalties charged to operations pursuant to such agreements amounted to approximately $60,000 in 2014, $92,000 in 2013 and $94,000 in 2012. | |||||||||||||
Legal Proceedings | |||||||||||||
We are a party to a litigation that could cause us to incur substantial cost or pay substantial damages. The landlord for the property previously leased by the Company in Ivyland, Pennsylvania filed suit against the Company, which vacated the property at the expiration of its lease, for the Company's alleged failure to restore the Property to its original condition. The landlord is currently in possession of a security deposit in the amount of $52,000. The Company denies its liability for the restoration of the property and believes that the outcome cannot be determined at this time. | |||||||||||||
On July 30, 2013, the District Court Judge issued an order against the Company in favor of the landlord Ivyland Ventures, LLC. Based on the language of the lease agreement, the Court, without making any factual findings on the extent of the Company's liability, ruled that the Company is required to remove and restore the premises to condition that existed as of January 11, 2006 or pay the cost of removal and restoration of improvements made during its entire occupation. Dates have been set for discovery with a trial tentatively scheduled for the Fall/Winter of 2014. The Company believes that the claims of the landlord are without merit and intends to vigorously defend this action. However, no assurance can be given that any amounts ultimately due by the Company will not have a material impact on the Company's financial condition. | |||||||||||||
On July XX, 2014 the parties have agreed to settle the case in the amount of $225,000 payable in three installments of $75,000 each. The payments will be made over a ninety day period from the date of executing appropriate documents. The settlement amount of $225,000 is accrued in the April 30, 2014 financial statements. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Apr. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plan | ' |
(9) Employee Benefit Plan | |
The Company has a defined contribution plan (the “Plan”) which is available to all qualified employees. Employees may elect to contribute a portion of their compensation to the Plan, subject to certain limitations. The Company contributes a percentage of the employee’s contribution, subject to a maximum of 4.5 percent. The Company’s matching contributions aggregated approximately $180,000, $201,000 and $248,000 in 2014, 2013 and 2012, respectively. |
Revenues_by_Geographic_Locatio
Revenues by Geographic Location | 12 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Revenues by Geographic Location | ' | ||||||||||||||||
(10) Revenues by Geographic Location | |||||||||||||||||
The Company operates in one business segment and develops, manufactures and markets a variety of memory systems for use with servers and workstations which are manufactured by various companies. Revenues, total assets and long lived assets for 2014, 2013 and 2012 by geographic region is as follows: | |||||||||||||||||
United | |||||||||||||||||
States | Europe | Other* | Consolidated | ||||||||||||||
30-Apr-14 | |||||||||||||||||
Revenues | $ | 24,917,000 | $ | 3,431,000 | $ | 2,051,000 | $ | 30,399,000 | |||||||||
Total assets | $ | 7,556,000 | $ | 16,000 | $ | 0 | $ | 7,572,000 | |||||||||
Long lived assets | $ | 1,353,000 | $ | 0 | $ | 0 | $ | 1,353,000 | |||||||||
30-Apr-13 | |||||||||||||||||
Revenues | $ | 21,702,000 | $ | 3,983,000 | $ | 1,931,000 | $ | 27,616,000 | |||||||||
Total assets | $ | 8,153,000 | $ | 12,000 | $ | 0 | $ | 8,165,000 | |||||||||
Long lived assets | $ | 1,697,000 | $ | 0 | $ | 0 | $ | 1,697,000 | |||||||||
30-Apr-12 | |||||||||||||||||
Revenues | $ | 27,980,000 | $ | 5,393,000 | $ | 2,706,000 | $ | 36,079,000 | |||||||||
Total assets | $ | 11,373,000 | $ | 54,000 | $ | 3,000 | $ | 11,430,000 | |||||||||
Long lived assets | $ | 2,503,000 | $ | 0 | $ | 0 | $ | 2,503,000 | |||||||||
*Principally Asia Pacific Region |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Apr. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
(11) Subsequent Event | |
On July 15, 2014, the Company entered into a Subordinated Secured Convertible Bridge Note and Warrant Purchase Agreement (the “Purchase Agreement”) governing the issuance of up to $750,000 aggregate principal amount of Subordinated Secured Convertible Bridge Notes (the “Bridge Notes”) and Warrants (the “Warrants”). The Bridge Notes and Warrants were issued on July 15, 2014. The Company issued $600,000 aggregate principal amount of the Bridge Notes to certain institutional investors (“Institutional Investors”) and $150,000 aggregate principal amount of the Bridge Notes to certain members of management, officers and directors of the Company (“Management”). The Bridge Notes, which mature on October 15, 2014 (subject to a three-month extension at the option of the holders), are convertible into shares of the Company’s common stock. The initial conversion price for Institutional Investors is $2.50 per share, and the initial conversion price for Management is equal to the closing price of the Company’s common stock on the closing date of the Purchase Agreement, $2.94. The Bridge Notes are secured obligations of the Company and will bear interest at a rate of 8% per year. The Warrants are exercisable for five years after the closing date of the Purchase Agreement. For each $1,000 of principal amount of Bridge Notes, the holder will receive 1,200 Warrants to purchase the Company’s common stock. Each holder will be entitled to exercise one-third of all warrants received at an exercise price of $3.00, one-third of all warrants received at an exercise price of $3.50, and one-third of all warrants received at an exercise price that is equal to the closing price on the closing date of the Purchase Agreement, $2.94. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Liquidity and Basis of Presentation | ' | ||||||||||||||||||||
Liquidity and Basis of Presentation | |||||||||||||||||||||
The Company's financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. For the fiscal years ended April 30, 2014, 2013 and 2012, the Company incurred losses in the amounts of approximately $2,609,000, $4,625,000 and $3,259,000, respectively. Net cash used in operating activities totaled approximately $1,554,000, $3,882,000 and $1,218,000 for the fiscal years ended April 30, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
Our continuation as a going concern is dependent upon obtaining the additional working capital necessary to sustain our operations. Our future is dependent upon our ability to obtain financing, raise capital through the sales of equity and or debt securities and upon future profitable operations. There is no assurance that our current operations will be profitable or we will raise sufficient funds to continue operating. The Company continues to seek out opportunities to trim overhead expenses to meet revenues. | |||||||||||||||||||||
If current and projected revenue growth does not meet estimates, the Company may continue to choose to raise additional capital through debt and/or equity transactions, reduce certain overhead costs through the deferral of salaries and other means, and settle liabilities through negotiation. Currently, the Company does not have any commitments or assurances for additional capital, nor can the Company provide assurance that such financing will be available to it on favorable terms, or at all. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event we cannot continue in existence. | |||||||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. | |||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||
Cash and cash equivalents consist of unrestricted cash and money market accounts. | |||||||||||||||||||||
Accounts Receivable | ' | ||||||||||||||||||||
Accounts Receivable | |||||||||||||||||||||
Accounts receivable consist of the following: | |||||||||||||||||||||
April 30, | April 30, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Trade receivables | $ | 3,758,000 | $ | 2,962,000 | |||||||||||||||||
VAT receivable | 125,000 | 123,000 | |||||||||||||||||||
Allowance for doubtful accounts and sales returns | (220,000 | ) | (200,000 | ) | |||||||||||||||||
$ | 3,663,000 | $ | 2,885,000 | ||||||||||||||||||
Inventories | ' | ||||||||||||||||||||
Inventories | |||||||||||||||||||||
Inventories, consisting of materials, labor and manufacturing overhead, are stated at the lower of cost or market, with cost determined by the first-in, first-out method. | |||||||||||||||||||||
Property and Equipment | ' | ||||||||||||||||||||
Property and Equipment | |||||||||||||||||||||
Property and equipment is recorded at cost. Depreciation is computed on the straight-line basis. Depreciation and amortization rates are based on the estimated useful lives, which range from two to five years for machinery and equipment and five to six years for leasehold improvements. When property or equipment is retired or otherwise disposed of, related costs and accumulated depreciation and amortization are removed from the accounts. Depreciation and amortization expense related to property and equipment for the fiscal years ended April 30, 2014, 2013 and 2012 totaled $167,000, $279,000 and $496,000, respectively. | |||||||||||||||||||||
Repair and maintenance costs are charged to operations as incurred. | |||||||||||||||||||||
Long-Lived Assets | ' | ||||||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||
Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | |||||||||||||||||||||
Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheets and reported at the lower of the carrying amount or fair value less cost to sell, and no longer depreciated. The Company considers various valuation factors, principally undiscounted cash flows, to assess the fair values of long-lived assets. | |||||||||||||||||||||
Goodwill | ' | ||||||||||||||||||||
Goodwill: | |||||||||||||||||||||
Goodwill – The carrying value of goodwill is not amortized, but is tested annually as of March 31 as well as whenever events or changes in circumstances indicate that the carrying amount may not be recoverable using a two-step process. Based on a combination of factors that occurred in the fourth quarter of fiscal 2013, including the operating results of the MMB business unit, management concluded that a goodwill impairment triggering event had occurred. Accordingly, the Company performed a testing of the carrying value of $1,519,000 of goodwill for MMB using a discounted cash flow model to estimate the fair value of the reporting unit. After this testing, management concluded that the carrying value of the MMB business unit exceeded the fair value of this reporting unit. The implied fair value of the goodwill of the MMB business unit was calculated by allocating the fair values of substantially all of its individual assets, liabilities and identified intangible assets as if MMB business unit had been acquired in a business combination. As a result, the Company recorded a non-cash goodwill impairment charge of $438,000 in fiscal year ended April 30, 2013. As of April 30, 2014, management has concluded that no additional impairment of goodwill is required. | |||||||||||||||||||||
The following table outlines the changes in goodwill for the year ended April 30, 2014: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Opening balance May 1 | $ | 1,083,000 | $ | 1,453,000 | |||||||||||||||||
Contingent purchase price | — | 68,000 | |||||||||||||||||||
Impairment charge | — | (438,000 | ) | ||||||||||||||||||
Goodwill balance April 30 | $ | 1,083,000 | $ | 1,083,000 | |||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||
Intangible Assets: | |||||||||||||||||||||
Intangible assets with determinable lives, other than customer relationships, are amortized on a straight-line basis over their estimated period of benefit, ranging from four to five years. Customer relationships are amortized over a two-year period at a rate of 65% of the gross value acquired in the first year subsequent to their acquisition and 35% of the gross value acquired in the second year. The Company evaluates the recoverability of intangible assets periodically and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. | |||||||||||||||||||||
All of the Company’s intangible assets with definitive lives are subject to amortization. During the third quarter of the fiscal year ended April 30, 2012, the XcelaSAN product was available for general release and generated approximately $8,000 of revenue, which was significantly lower than expected. The Company determined in the fiscal year ended April 30, 2012’s third quarter based on the estimated future net realizable value for the expected periods of benefit that the carrying value of capitalized software development cost was impaired. As such, approximately $2,387,000 of capitalized software development cost was written down to zero. | |||||||||||||||||||||
The Company estimates that it has no significant residual value related to its intangible assets. Intangible assets amortization expense was $133,000 for fiscal year ended April 30, 2014, $164,000 for the fiscal year ended April 30, 2013 and $164,000 for the fiscal year ended April 30, 2012. As of April 30, 2014, the components of finite-lived intangible assets acquired are as follows: | |||||||||||||||||||||
Gross | Weighted | Net | |||||||||||||||||||
Carrying | Average | Accumulated | Carrying | ||||||||||||||||||
Amount | Life | Amortization | Amount | ||||||||||||||||||
Customer relationships | $ | 758,000 | 2 Years | $ | 758,000 | $ | 0 | ||||||||||||||
Trade names | 733,000 | 5 Years | 733,000 | 0 | |||||||||||||||||
Non-compete agreement | 68,000 | 4 Years | 68,000 | 0 | |||||||||||||||||
$ | 1,559,000 | $ | 1,559,000 | $ | 0 | ||||||||||||||||
As of April 30, 2013, the components of finite-lived intangible assets acquired were as follows: | |||||||||||||||||||||
Gross | Weighted | Net | |||||||||||||||||||
Carrying | Average | Accumulated | Carrying | ||||||||||||||||||
Amount | Life | Amortization | Amount | ||||||||||||||||||
Customer relationships | $ | 758,000 | 2 Years | $ | 758,000 | $ | 0 | ||||||||||||||
Trade names | 733,000 | 5 Years | 600,000 | 133,000 | |||||||||||||||||
Non-compete agreement | 68,000 | 4 Years | 68,000 | 0 | |||||||||||||||||
$ | 1,559,000 | $ | 1,426,000 | $ | 133,000 | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||
Fair Value of Financial Instruments: | |||||||||||||||||||||
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 Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy. | |||||||||||||||||||||
The following table sets forth the assets and liabilities measured at fair value on a nonrecurring basis, by input level, in the consolidated balance sheets at April 30, 2014: | |||||||||||||||||||||
Quoted | Total | ||||||||||||||||||||
Prices in | Reduction | ||||||||||||||||||||
Active Markets for | Significant Other | Significant | in Fair value | ||||||||||||||||||
Balance Sheet | Identical Assets or | Observable Inputs | Unobservable | 30-Apr-14 | Recorded as of | ||||||||||||||||
Location | Liabilities (Level 1) | (Level 2) | Inputs (Level 3) | Total | 30-Apr-14 | ||||||||||||||||
Assets: | |||||||||||||||||||||
Goodwill | $ | — | $ | — | $ | 1,083,000 | $ | 1,083,000 | $ | (438,000 | ) | ||||||||||
Revenue Recognition | ' | ||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||
Revenue is recognized when title passes upon shipment of goods to customers. The Company’s revenue earning activities involve delivering or producing goods. The following criteria are met before revenue is recognized: persuasive evidence of an arrangement exists, shipment has occurred, selling price is fixed or determinable and collection is reasonably assured. The Company does experience a minimal level of sales returns and allowances for which the Company accrues a reserve at the time of sale. Estimated warranty costs are accrued by management upon product shipment based on an estimate of future warranty claims. | |||||||||||||||||||||
Engineering and Research and Development | ' | ||||||||||||||||||||
Engineering and Research and Development | |||||||||||||||||||||
Research and development costs are expensed as incurred, including Company-sponsored research and development and costs of patents and other intellectual property that have no alternative future use when acquired and in which we had an uncertainty of receiving future economic benefits. Development costs of a computer software product to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. Technological feasibility of a computer software product is established when all planning, designing, coding and testing activities that are necessary to establish that the product can be produced to meet its design specifications (including functions, features and technical performance requirements) are completed. The Company had been developing computer software for its XcelaSAN storage caching product line. On November 4, 2010, the Company determined that technological feasibility of the product was established, and development costs subsequent to that date have been capitalized. Prior to November 4, 2010, the Company expensed all development costs related to this product line. In the third quarter of fiscal year ended April 30, 2012 when the product was made available for general release to customers, the Company discontinued capitalizing development costs. | |||||||||||||||||||||
During the third quarter of the fiscal year ended April 30, 2012, the XcelaSAN product was available for general release and generated approximately $8,000 of revenue, which was significantly lower than expected. The Company determined in the fiscal year ended April 30, 2012’s third quarter based on the estimated future net realizable value for the expected periods of benefit that the carrying value of capitalized software development cost was impaired. As such, approximately $2,387,000 of capitalized software development cost was written down to zero. | |||||||||||||||||||||
Advertising | ' | ||||||||||||||||||||
Advertising | |||||||||||||||||||||
Advertising is expensed as incurred and amounted to $139,000, $77,000 and $223,000 in the fiscal years ended April 30, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
Income taxes | ' | ||||||||||||||||||||
Income Taxes | |||||||||||||||||||||
The Company utilizes the asset and liability method of accounting for income taxes in accordance with the provisions of the Expenses – Income Taxes Topic of the FASB ASC. Under the asset and liability method, deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The Company considers certain tax planning strategies in its assessment as to the recoverability of its tax assets. Deferred income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in earnings in the period that the tax rate changes. The Company recognizes, in its consolidated financial statements, the impact of a tax position, if that position is more likely than not to be sustained on audit, based on the technical merits of the position. There are no material unrecognized tax positions in the financial statements. | |||||||||||||||||||||
Concentrations of Credit Risk | ' | ||||||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents in financial institutions and brokerage accounts. To the extent that such deposits exceed the maximum insurance levels, they are uninsured. The Company performs ongoing evaluations of its customers’ financial condition, as well as general economic conditions and, generally, requires no collateral from its customers. At April 30, 2014 and 2013, amounts due from one customer totaled approximately 30% and 19%, respectively, of accounts receivable. | |||||||||||||||||||||
In fiscal years ended April 30, 2014, 2013 and 2012, the Company had sales to one customer that accounted for approximately 15%, 9% and 11%, respectively, of revenues. | |||||||||||||||||||||
Net Income (Loss) Per Share | ' | ||||||||||||||||||||
Net Income (Loss) Per Share | |||||||||||||||||||||
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is calculated in a manner consistent with basic net income (loss) per share except that the weighted average number of common shares outstanding also includes the dilutive effect of stock options outstanding (using the treasury stock method). | |||||||||||||||||||||
The following presents a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share. All amounts shown have adjusted to reflect the reverse 6-for-1 stock split effective March 18, 2013. | |||||||||||||||||||||
Year ended April 30, 2014 | |||||||||||||||||||||
Loss | Shares | Per share | |||||||||||||||||||
(numerator) | (denominator) | amount | |||||||||||||||||||
Basic net loss per share-net loss and weighted average common shares outstanding | $ | (2,609,000 | ) | 1,999,856 | $ | (1.30 | ) | ||||||||||||||
Effect of dilutive securities-stock options | — | — | — | ||||||||||||||||||
Diluted net loss per share -net loss weighted average common shares outstanding and effect of stock options | $ | (2,609,000 | ) | 1,999,856 | $ | (1.30 | ) | ||||||||||||||
Year ended April 30, 2013 | |||||||||||||||||||||
Loss | Shares | Per share | |||||||||||||||||||
(numerator) | (denominator) | amount | |||||||||||||||||||
Basic net loss per share-net loss and weighted average common shares outstanding | $ | (4,625,000 | ) | 1,776,796 | $ | (2.60 | ) | ||||||||||||||
Effect of dilutive securities-stock options | — | — | — | ||||||||||||||||||
Diluted net loss per share-net loss weighted average common shares outstanding | $ | (4,625,000 | ) | 1,776,796 | $ | (2.60 | ) | ||||||||||||||
and effect of stock options | |||||||||||||||||||||
Year ended April 30, 2012 | |||||||||||||||||||||
Loss | Shares | Per share | |||||||||||||||||||
(numerator) | (denominator) | amount | |||||||||||||||||||
Basic net loss per share-net loss and weighted average common shares outstanding | $ | (3,259,000 | ) | 1,770,952 | $ | (1.84 | ) | ||||||||||||||
Effect of dilutive securities-stock options | — | — | — | ||||||||||||||||||
Diluted net loss per share-net loss, weighted average common shares outstanding | $ | (3,259,000 | ) | 1,770,952 | $ | (1.84 | ) | ||||||||||||||
and effect of stock options | |||||||||||||||||||||
Diluted net loss per common share does not include the effect of options to purchase 272,580, 319,908 and 299,317 shares of Common Stock for the years ended April 30, 2014, 2013 and 2012, respectively, because they are anti-dilutive. Diluted net loss per common share for the years ended April 30, 2014, 2013 and 2012 also does not include the effect of warrants to purchase 485,775, 221,875 and 221,875 shares, respectively, because they are anti-dilutive. | |||||||||||||||||||||
Product Warranty | ' | ||||||||||||||||||||
Product Warranty | |||||||||||||||||||||
The majority of the Company’s products are intended for single use; therefore, the Company requires limited product warranty accruals. The Company accrues estimated product warranty cost at the time of sale and any additional amounts are recorded when such costs are probable and can be reasonably estimated. | |||||||||||||||||||||
Balance | Charges to | Balance | |||||||||||||||||||
Beginning | Costs and | End | |||||||||||||||||||
of Year | Expenses | Deductions | of Year | ||||||||||||||||||
Year Ended April 30, 2014 | $ | 69,000 | $ | 9,000 | $ | (9,000 | ) | $ | 69,000 | ||||||||||||
Year Ended April 30, 2013 | $ | 79,000 | $ | 14,000 | $ | (24,000 | ) | $ | 69,000 | ||||||||||||
Year Ended April 30, 2012 | $ | 79,000 | $ | 6,000 | $ | (6,000 | ) | $ | 79,000 | ||||||||||||
Use of Estimates | ' | ||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including deferred tax asset valuation allowances and certain other reserves and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Some of the more significant estimates made by management include the allowance for doubtful accounts and sales returns, the deferred income tax asset valuation allowance and other operating allowances and accruals. Actual results could differ from those estimates. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Accounts receivable | ' | ||||||||||||||||||||
April 30, | April 30, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Trade receivables | $ | 3,758,000 | $ | 2,962,000 | |||||||||||||||||
VAT receivable | 125,000 | 123,000 | |||||||||||||||||||
Allowance for doubtful accounts and sales returns | (220,000 | ) | (200,000 | ) | |||||||||||||||||
$ | 3,663,000 | $ | 2,885,000 | ||||||||||||||||||
Changes in goodwill | ' | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Opening balance May 1 | $ | 1,083,000 | $ | 1,453,000 | |||||||||||||||||
Contingent purchase price | — | 68,000 | |||||||||||||||||||
Impairment charge | — | (438,000 | ) | ||||||||||||||||||
Goodwill balance April 30 | $ | 1,083,000 | $ | 1,083,000 | |||||||||||||||||
The components of finite-lived intangible assets acquired | ' | ||||||||||||||||||||
As of April 30, 2014, the components of finite-lived intangible assets acquired are as follows: | |||||||||||||||||||||
Gross | Weighted | Net | |||||||||||||||||||
Carrying | Average | Accumulated | Carrying | ||||||||||||||||||
Amount | Life | Amortization | Amount | ||||||||||||||||||
Customer relationships | $ | 758,000 | 2 Years | $ | 758,000 | $ | 0 | ||||||||||||||
Trade names | 733,000 | 5 Years | 733,000 | 0 | |||||||||||||||||
Non-compete agreement | 68,000 | 4 Years | 68,000 | 0 | |||||||||||||||||
$ | 1,559,000 | $ | 1,559,000 | $ | 0 | ||||||||||||||||
As of April 30, 2013, the components of finite-lived intangible assets acquired were as follows: | |||||||||||||||||||||
Gross | Weighted | Net | |||||||||||||||||||
Carrying | Average | Accumulated | Carrying | ||||||||||||||||||
Amount | Life | Amortization | Amount | ||||||||||||||||||
Customer relationships | $ | 758,000 | 2 Years | $ | 758,000 | $ | 0 | ||||||||||||||
Trade names | 733,000 | 5 Years | 600,000 | 133,000 | |||||||||||||||||
Non-compete agreement | 68,000 | 4 Years | 68,000 | 0 | |||||||||||||||||
$ | 1,559,000 | $ | 1,426,000 | $ | 133,000 | ||||||||||||||||
The assets and liabilities measured at fair value on a nonrecurring basis, by input level, in the consolidated balance sheet | ' | ||||||||||||||||||||
Quoted | Total | ||||||||||||||||||||
Prices in | Reduction | ||||||||||||||||||||
Active Markets for | Significant Other | Significant | in Fair value | ||||||||||||||||||
Balance Sheet | Identical Assets or | Observable Inputs | Unobservable | 30-Apr-14 | Recorded as of | ||||||||||||||||
Location | Liabilities (Level 1) | (Level 2) | Inputs (Level 3) | Total | 30-Apr-14 | ||||||||||||||||
Assets: | |||||||||||||||||||||
Goodwill | $ | — | $ | — | $ | 1,083,000 | $ | 1,083,000 | $ | (438,000 | ) | ||||||||||
Reconciliation of the numerator and denominator used in computing basic and diluted net loss per share | ' | ||||||||||||||||||||
Year ended April 30, 2014 | |||||||||||||||||||||
Loss | Shares | Per share | |||||||||||||||||||
(numerator) | (denominator) | amount | |||||||||||||||||||
Basic net loss per share-net loss and weighted average common shares outstanding | $ | (2,609,000 | ) | 1,999,856 | $ | (1.30 | ) | ||||||||||||||
Effect of dilutive securities-stock options | — | — | — | ||||||||||||||||||
Diluted net loss per share -net loss weighted average common shares outstanding and effect of stock options | $ | (2,609,000 | ) | 1,999,856 | $ | (1.30 | ) | ||||||||||||||
Year ended April 30, 2013 | |||||||||||||||||||||
Loss | Shares | Per share | |||||||||||||||||||
(numerator) | (denominator) | amount | |||||||||||||||||||
Basic net loss per share-net loss and weighted average common shares outstanding | $ | (4,625,000 | ) | 1,776,796 | $ | (2.60 | ) | ||||||||||||||
Effect of dilutive securities-stock options | — | — | — | ||||||||||||||||||
Diluted net loss per share-net loss weighted average common shares outstanding | $ | (4,625,000 | ) | 1,776,796 | $ | (2.60 | ) | ||||||||||||||
and effect of stock options | |||||||||||||||||||||
Year ended April 30, 2012 | |||||||||||||||||||||
Loss | Shares | Per share | |||||||||||||||||||
(numerator) | (denominator) | amount | |||||||||||||||||||
Basic net loss per share-net loss and weighted average common shares outstanding | $ | (3,259,000 | ) | 1,770,952 | $ | (1.84 | ) | ||||||||||||||
Effect of dilutive securities-stock options | — | — | — | ||||||||||||||||||
Diluted net loss per share-net loss, weighted average common shares outstanding | $ | (3,259,000 | ) | 1,770,952 | $ | (1.84 | ) | ||||||||||||||
and effect of stock options | |||||||||||||||||||||
Product warranty accruals | ' | ||||||||||||||||||||
Balance | Charges to | Balance | |||||||||||||||||||
Beginning | Costs and | End | |||||||||||||||||||
of Year | Expenses | Deductions | of Year | ||||||||||||||||||
Year Ended April 30, 2014 | $ | 69,000 | $ | 9,000 | $ | (9,000 | ) | $ | 69,000 | ||||||||||||
Year Ended April 30, 2013 | $ | 79,000 | $ | 14,000 | $ | (24,000 | ) | $ | 69,000 | ||||||||||||
Year Ended April 30, 2012 | $ | 79,000 | $ | 6,000 | $ | (6,000 | ) | $ | 79,000 | ||||||||||||
Summary of option activity | ' | ||||||||||||||||||||
Options Outstanding | |||||||||||||||||||||
Exercise | Weighted | ||||||||||||||||||||
price | average | ||||||||||||||||||||
Shares | per share | exercise price | |||||||||||||||||||
Balance April 30, 2011 | 260,867 | $ 7.68-47.88 | $ | 16.72 | |||||||||||||||||
Granted | 48,000 | 6.36-6.72 | 6.59 | ||||||||||||||||||
Exercised | — | — | — | ||||||||||||||||||
Expired | (55,884 | ) | 6.72-47.88 | 21.67 | |||||||||||||||||
Balance April 30, 2012 | 252,983 | $ 6.36-24.54 | $ | 13.7 | |||||||||||||||||
Granted | 41,667 | 2.44-4.14 | 4.14 | ||||||||||||||||||
Exercised | — | — | — | ||||||||||||||||||
Expired | (14,408 | ) | 6.72-24.54 | 15.49 | |||||||||||||||||
Balance April 30, 2013 | 280,242 | $ 2.44-24.54 | $ | 12.04 | |||||||||||||||||
Granted | — | — | — | ||||||||||||||||||
Exercised | — | — | — | ||||||||||||||||||
Expired | (34,665 | ) | 6.72-24.54 | 10.41 | |||||||||||||||||
Balance April 30, 2014 | 245,577 | $ 2.44-19.20 | $ | 12.27 | |||||||||||||||||
The fair value of each stock option granted during the year | ' | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected life (years) | — | 3.0 to 5.75 | 3.0 to 3.3 | ||||||||||||||||||
Expected volatility | — | 77% | 77% | ||||||||||||||||||
Expected dividend yield | — | — | — | ||||||||||||||||||
Expected forfeiture rate | — | 5.00% | 5.00% | ||||||||||||||||||
Risk-free interest rate | — | 0.5% to 0.6% | 0.5% to 0.6% | ||||||||||||||||||
Weighted average fair value of options granted during the year | — | $ | 0.9 | $ | 0.56 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income tax expense | ' | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | — | 5,000 | 5,000 | ||||||||||
— | 5,000 | 5,000 | |||||||||||
Deferred: | |||||||||||||
Federal | — | — | — | ||||||||||
State | — | — | — | ||||||||||
— | — | — | |||||||||||
Total income tax expense | $ | — | $ | 5,000 | $ | 5,000 | |||||||
Income tax expense differs from expected tax expense | ' | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax at statutory rates | $ | (879,000 | ) | $ | (1,459,000 | ) | $ | (1,106,000 | ) | ||||
State income taxes (net of Federal income tax benefit) | (179,000 | ) | (249,000 | ) | (193,000 | ) | |||||||
Other | (105,000 | ) | 52,000 | (47,000 | ) | ||||||||
Total income tax expense (benefit) before provision for valuation allowance | (1,163,000 | ) | (1,656,000 | ) | (1,346,000 | ) | |||||||
Changes in valuation allowance | 1,163,000 | 1,661,000 | 1,351,000 | ||||||||||
Total income tax expense | $ | 0 | $ | 5,000 | $ | 5,000 | |||||||
The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities | ' | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Compensated absences and severance, principally due to accruals for financial reporting purposes | $ | 75,000 | $ | 150,000 | |||||||||
Stock-based compensation expense | 1,275,000 | 1,259,000 | |||||||||||
Accounts receivable, principally due to allowance for doubtful accounts and sales returns | 86,000 | 78,000 | |||||||||||
Property and equipment, principally due to differences in depreciation | 240,000 | 106,000 | |||||||||||
Intangible assets | 430,000 | 464,000 | |||||||||||
Inventories | 68,000 | 91,000 | |||||||||||
Domestic net operating losses | 10,134,000 | 9,089,000 | |||||||||||
Alternative minimum tax | 438,000 | 438,000 | |||||||||||
Other | 153,000 | 61,000 | |||||||||||
Net deferred tax assets | 12,899,000 | 11,736,000 | |||||||||||
Valuation allowance | (12,899,000 | ) | (11,736,000 | ) | |||||||||
Net deferred tax assets | $ | — | $ | — |
Stock_Options_Tables
Stock Options (Tables) | 12 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Stock options activity table | ' | ||||||||||||
Options Outstanding | |||||||||||||
Exercise | Weighted | ||||||||||||
price | average | ||||||||||||
Shares | per share | exercise price | |||||||||||
Balance April 30, 2011 | 260,867 | $ 7.68-47.88 | $ | 16.72 | |||||||||
Granted | 48,000 | 6.36-6.72 | 6.59 | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (55,884 | ) | 6.72-47.88 | 21.67 | |||||||||
Balance April 30, 2012 | 252,983 | $ 6.36-24.54 | $ | 13.7 | |||||||||
Granted | 41,667 | 2.44-4.14 | 4.14 | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (14,408 | ) | 6.72-24.54 | 15.49 | |||||||||
Balance April 30, 2013 | 280,242 | $ 2.44-24.54 | $ | 12.04 | |||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (34,665 | ) | 6.72-24.54 | 10.41 | |||||||||
Balance April 30, 2014 | 245,577 | $ 2.44-19.20 | $ | 12.27 | |||||||||
Non-employee direction stock award plan activity table | ' | ||||||||||||
Options Outstanding | |||||||||||||
Exercise | Weighted | ||||||||||||
price | average | ||||||||||||
Shares | per share | exercise price | |||||||||||
Balance April 30, 2011 | 47,333 | $ 11.94-47.88 | $ | 20.25 | |||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (9,333 | ) | 28.20-47.88 | 36.64 | |||||||||
Balance April 30, 2012 | 38,000 | $ 11.94-24.54 | $ | 16.23 | |||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (6,667 | ) | 17.94-19.98 | 19.16 | |||||||||
Balance April 30, 2013 | 31,333 | $ 11.94-24.54 | $ | 15.6 | |||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | (12,666 | ) | 15.42-24.54 | 17.34 | |||||||||
Balance April 30, 2014 | 18,667 | $ 11.94-15.42 | $ | 14.43 |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued liabilities | ' | ||||||||
2014 | 2013 | ||||||||
Payroll, including vacation | $ | 226,000 | $ | 253,000 | |||||
Commissions | 75,000 | 60,000 | |||||||
Bonuses | 70,000 | 50,000 | |||||||
Lease abandonment | — | 100,000 | |||||||
Lease legal settlement | 225,000 | — | |||||||
Deferred gain on equipment sale | 72,000 | — | |||||||
Other | 261,000 | 221,000 | |||||||
$ | 929,000 | $ | 684,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Future minimum lease payments | ' | ||||||||||||
Year ending April 30: | Non-Related | Related | Total | ||||||||||
Party | Party | ||||||||||||
2015 | $ | 301,000 | $ | 90,000 | $ | 391,000 | |||||||
2016 | 293,000 | 90,000 | 383,000 | ||||||||||
2017 | 68,000 | 90,000 | 158,000 | ||||||||||
2018 | — | 90,000 | 90,000 | ||||||||||
2019 | — | 45,000 | 45,000 | ||||||||||
Thereafter | — | — | — | ||||||||||
Total | $ | 662,000 | $ | 405,000 | $ | 1,067,000 |
Revenues_by_Geographic_Locatio1
Revenues by Geographic Location (Tables) | 12 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Revenue by geographic location | ' | ||||||||||||||||
United | |||||||||||||||||
States | Europe | Other* | Consolidated | ||||||||||||||
30-Apr-14 | |||||||||||||||||
Revenues | $ | 24,917,000 | $ | 3,431,000 | $ | 2,051,000 | $ | 30,399,000 | |||||||||
Total assets | $ | 7,556,000 | $ | 16,000 | $ | 0 | $ | 7,572,000 | |||||||||
Long lived assets | $ | 1,353,000 | $ | 0 | $ | 0 | $ | 1,353,000 | |||||||||
30-Apr-13 | |||||||||||||||||
Revenues | $ | 21,702,000 | $ | 3,983,000 | $ | 1,931,000 | $ | 27,616,000 | |||||||||
Total assets | $ | 8,153,000 | $ | 12,000 | $ | 0 | $ | 8,165,000 | |||||||||
Long lived assets | $ | 1,697,000 | $ | 0 | $ | 0 | $ | 1,697,000 | |||||||||
30-Apr-12 | |||||||||||||||||
Revenues | $ | 27,980,000 | $ | 5,393,000 | $ | 2,706,000 | $ | 36,079,000 | |||||||||
Total assets | $ | 11,373,000 | $ | 54,000 | $ | 3,000 | $ | 11,430,000 | |||||||||
Long lived assets | $ | 2,503,000 | $ | 0 | $ | 0 | $ | 2,503,000 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Liquidity and Basis of Presentation (Details Narrative) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Summary Of Significant Accounting Policies - Liquidity And Basis Of Presentation Details Narrative | ' | ' | ' |
Net loss | ($2,609,000) | ($4,625,000) | ($3,259,000) |
Net cash used in operating activities | ($1,554,000) | ($3,882,000) | ($1,218,000) |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Stock Split (Details Narrative) | 12 Months Ended |
Apr. 30, 2014 | |
Summary Of Significant Accounting Policies - Stock Split Details Narrative | ' |
Stock split, description | 'On January 31, 2013, the Company filed a proxy statement with the Securities and Exchange Commission for the purpose of calling a special meeting of its stockholders. The Board of Directors asked the stockholders to approve the Board’s action in effecting a reverse split of its Common Stock at a ratio of no less than 1 for 3 and no greater than 1 for 6. The meeting was held at the Company’s offices on March 13, 2013. The stockholders approved the action and immediately following the meeting, the Board of Directors voted to affect a reverse split of its common stock at the ratio of 1 for 6. The split shares were effective with the opening of trading on March 15, 2013. Relevant financial data has been adjusted in this report to reflect the 1 for 6 reverse stock split. |
Disclosure_Summary_of_Signific
Disclosure - Summary of Significant Accounting Policies - Accounts receivable (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Notes to Financial Statements | ' | ' |
Trade receivables | $3,758,000 | $2,962,000 |
VAT receivable | 125,000 | 123,000 |
Allowance for doubtful accounts and sales returns | 220,000 | 200,000 |
Accounts receivable | $3,663,000 | $2,885,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Property and Equipment (Details Narrative) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Summary Of Significant Accounting Policies - Liquidity And Basis Of Presentation Details Narrative | ' | ' | ' |
Depreciation and amortization expense related to property and equipment | $167,000 | $279,000 | $496,999 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Goodwill (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Summary Of Significant Accounting Policies - Liquidity And Basis Of Presentation Details Narrative | ' | ' |
Opening balance May 1 | $1,083,000 | $1,453,000 |
Impairment charge | ' | 438,000 |
Goodwill balance April 30 | $1,083,000 | $1,083,000 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Goodwill (Details Narrative) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Summary Of Significant Accounting Policies - Liquidity And Basis Of Presentation Details Narrative | ' | ' |
Goodwill impairment triggering event | 'Based on a combination of factors that occurred in the fourth quarter of fiscal 2013, including the operating results of the MMB business unit, management concluded that a goodwill impairment triggering event had occurred. Accordingly, the Company performed a testing of the carrying value of $1,519,000 of goodwill for MMB using a discounted cash flow model to estimate the fair value of the reporting unit. After this testing, management concluded that the carrying value of the MMB business unit exceeded the fair value of this reporting unit. The implied fair value of the goodwill of the MMB business unit was calculated by allocating the fair values of substantially all of its individual assets, liabilities and identified intangible assets as if MMB business unit had been acquired in a business combination. | ' |
Goodwill impairment charge | ' | $438,000 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Intangible Assets - Components of finite-lived intangible assets acquired (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Components of finite-lived intangible assets acquired | ' | ' |
Total gross carrying amount | $1,559,000 | $1,559,000 |
Accumulated amortization | 1,559,000 | 1,426,000 |
Net carrying amount | 0 | 133,000 |
Customer Relationships | ' | ' |
Components of finite-lived intangible assets acquired | ' | ' |
Total gross carrying amount | 758,000 | 758,000 |
Accumulated amortization | 758,000 | 758,000 |
Net carrying amount | 0 | 0 |
Weighted Average Life | '2 years | '2 years |
Trade Names | ' | ' |
Components of finite-lived intangible assets acquired | ' | ' |
Total gross carrying amount | 733,000 | 733,000 |
Accumulated amortization | 733,000 | 600,000 |
Net carrying amount | 0 | 133,000 |
Weighted Average Life | '5 years | '5 years |
Noncompete Agreement | ' | ' |
Components of finite-lived intangible assets acquired | ' | ' |
Total gross carrying amount | 68,000 | 68,000 |
Accumulated amortization | 68,000 | 68,000 |
Net carrying amount | $0 | $0 |
Weighted Average Life | '4 years | '4 years |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Intangible Assets (Details Narrative) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | Jan. 31, 2012 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | |
Finite-Lived Intangible Assets | Maximum | Minimum | Finite-Lived Intangible Assets | Customer Relationships | ||||
Intangible Assets and Goodwill (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, Amortization method | ' | ' | ' | ' | ' | ' | 'Straight-line basis | 'Amortized over a two-year period at a rate of 65% of the gross value acquired in the first year subsequent to their acquisition and 35% of the gross value acquired in the second year. |
Intangible Asset, Estimated period of benefit | ' | ' | ' | ' | '5 years | '4 years | ' | ' |
Impairments of intangible assets | ' | ' | $2,387,000 | ' | ' | ' | ' | ' |
Residual value of intangible assets | 0 | ' | ' | ' | ' | ' | ' | ' |
Revenues | 30,399,000 | 27,616,000 | 36,079,000 | 8,000 | ' | ' | ' | ' |
Intangible assets amortization expense | $133,000 | $164,000 | $164,000 | ' | ' | ' | ' | ' |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) (USD $) | 12 Months Ended |
Apr. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Goodwill | $1,083,000 |
Total Increase (Reduction) in Fair Value | -438,000 |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 | Goodwill | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Goodwill | ' |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 | Goodwill | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Goodwill | ' |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Goodwill | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Goodwill | $1,083,000 |
Recovered_Sheet1
Summary of Significant Accounting Policies - Engineering and Research and Development (Details Narrative) (USD $) | 12 Months Ended | 3 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | Jan. 31, 2012 | |
XcelaSAN | ||||
Revenues | ' | ' | ' | $8,000 |
Impairment of capitalized software | ' | ' | $2,387,000 | $2,387,000 |
Recovered_Sheet2
Summary of Significant Accounting Policies - Advertising (Details Narrative) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Summary Of Significant Accounting Policies - Advertising Details Narrative | ' | ' | ' |
Advertising expense | $139,000 | $77,000 | $223,000 |
Recovered_Sheet3
Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details Narrative) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Accounts Receivable | ' | ' | ' |
One customer percentage | 30.00% | 19.00% | ' |
Revenues | ' | ' | ' |
One customer percentage | 15.00% | 9.00% | 11.00% |
Recovered_Sheet4
Summary of Significant Accounting Policies - Reconciliation of the numerator and denominator used in computing basic and diluted net loss per share (Details) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Summary Of Significant Accounting Policies - Reconciliation Of Numerator And Denominator Used In Computing Basic And Diluted Net Loss Per Share Details | ' | ' | ' |
Loss (numerator) | ($2,609,000) | ($4,625,000) | ($3,259,000) |
Shares (denominator) | 1,999,856 | 1,776,796 | 1,770,952 |
Net loss per share, basic | ($1.30) | ($2.60) | ($1.84) |
Effect of dilutive securities b stock options | ' | ' | ' |
Loss (numerator) | ($2,609,000) | ($4,625,000) | ($3,259,000) |
Shares (denominator) | 1,999,856 | 1,776,796 | 1,770,952 |
Net loss per share, diluted | ($1.30) | ($2.60) | ($1.84) |
Recovered_Sheet5
Summary of Significant Accounting Policies - Net Income (Loss) Per Share (Details Narrative) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Stock Options | ' | ' | ' |
Anti-dilutive securities not included in diluted net loss per common share computation | 272,580 | 319,908 | 299,317 |
Warrant | ' | ' | ' |
Anti-dilutive securities not included in diluted net loss per common share computation | 485,775 | 221,875 | 221,875 |
Recovered_Sheet6
Summary of Significant Accounting Policies - Product Warranty (Details) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Summary Of Significant Accounting Policies - Product Warranty Details | ' | ' | ' |
Balance beginning of year | $69,000 | $79,000 | $79,000 |
Charges to costs and expenses | 9,000 | 14,000 | 6,000 |
Deductions | -9,000 | -24,000 | -6,000 |
Balance end of year | $69,000 | $69,000 | $79,000 |
Recovered_Sheet7
Summary of Significant Accounting Policies - Stock-Based Compensation - Summary of option activity (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2009 | Apr. 30, 2014 | Apr. 30, 2013 | ||
options | ||||
Summary of option activity, Shares | ' | ' | ' | |
Beginning Balance (in shares) | ' | 311,575 | ' | |
Granted | 8,333 | ' | ' | |
Exercised | ' | ' | ' | |
Expired | ' | -47,331 | ' | |
Ending balance (in shares) | ' | 264,244 | 311,575 | |
Exercisable April 30, 2014 | ' | 251,744 | 257,325 | |
Expected to vest April 30, 2014 | ' | 250,000 | 272,000 | |
Summary of option activity, Weighted average exercise price | ' | ' | ' | |
Granted | ' | ' | ' | |
Exercised | ' | ' | ' | |
Expired | ' | $12.26 | ' | |
Ending balance (in dollars per share) | ' | $12.42 | ' | |
Exercisable April 30, 2014 | ' | $12.91 | $14.10 | |
Expected to vest April 30, 2014 | ' | $12.42 | $12.40 | |
Summary of option activity, Additional disclosures | ' | ' | ' | |
Weighted average remaining contractual life | ' | '4 years 5 months 16 days | '5 years 0 months 7 days | |
Exercisable, weighted average remaining contractual life | ' | '4 years 2 months 23 days | ' | |
Expected to vest, weighted average remaining contractual life | ' | '4 years 5 months 16 days | ' | |
Balance April 30, 2013, Aggregate intrinsic value | ' | ' | ' | |
Granted, Aggregate intrinsic value | ' | ' | ' | |
Exercised, Aggregate intrinsic value | ' | ' | ' | |
Expired, Aggregate intrinsic value | ' | ' | ' | |
Balance April 30, 2014, Aggregate intrinsic value | ' | 6,250 | [1] | ' |
Exercisable April 30, 2014, Aggregate intrinsic value | ' | 3,125 | [1] | ' |
Expected to vest April 30, 2014, Aggregate intrinsic value | ' | $6,250 | [1] | ' |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | |
Closing price of common stock on NASDAQ Stock Market | ' | $2.69 | ' | |
Number of in-the-money options outstanding | ' | 25,000 | ' | |
[1] | These amounts represent the difference between the exercise price and the closing price of Dataram Common Stock as of the end of the reporting period, $2.69 on April 30, 2014 as reported on the NASDAQ Stock Market. There are 25,000 in-the-money options outstanding at April 30, 2014. |
Recovered_Sheet8
Summary of Significant Accounting Policies - Stock-Based Compensation - Fair Value of Each Stock Option Granted (Details) (Stock Option Plan, USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Stock Option Plan | ' | ' | ' |
Expected life (years) | 'B B B B | '3.0 to 5.75 | '3.0 to 3.3 |
Expected volatility | ' | 77.00% | 77.00% |
Expected dividend yield | ' | ' | ' |
Expected forfeiture rate | ' | 5.00% | 5.00% |
Risk-free interest rate minimum | ' | 0.50% | 0.50% |
Risk-free interest rate maximum | ' | 0.60% | 0.60% |
Weighted average fair value of options granted during the year | ' | $0.90 | $0.56 |
Recovered_Sheet9
Summary of Significant Accounting Policies - Stock-Based Compensation (Details Narrative) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' |
Stock-based compensation expense | $43,000 | $231,000 | $451,000 |
Options completing vesting | 34,498 | ' | ' |
Total unrecognized compensation costs related to stock options | $14,000 | ' | ' |
Shares authorized for future grant under the Company's stock option plans | 8,333 | ' | ' |
Financing_Agreements_Payables_
Financing Agreements - Payables (Details Narrative) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||
Apr. 30, 2014 | Apr. 30, 2012 | Apr. 30, 2013 | Jul. 31, 2010 | Mar. 02, 2012 | 17-May-12 | Dec. 18, 2012 | Nov. 30, 2013 | Apr. 30, 2014 | Nov. 06, 2013 | Apr. 30, 2013 | Apr. 30, 2012 | Dec. 14, 2011 | Oct. 31, 2013 | Apr. 30, 2014 | 17-May-12 | |
Secured Debt Financing Agreement 2010-27-07 | Secured Debt Financing Agreement Amended | Secured Debt Financing Agreement Amended and Restated | Secured Debt Financing Agreement Amendment 2 | Rosenthal and Rosenthal Financing Agreement | Rosenthal and Rosenthal Financing Agreement | Rosenthal and Rosenthal Financing Agreement | Rosenthal and Rosenthal Financing Agreement | Rosenthal and Rosenthal Financing Agreement | Mr. Sheerr | Mr. Sheerr | Mr. Sheerr | Minimum | ||||
Note and Security Agreement | Note and Security Agreement | Note and Security Agreement | Secured Debt Financing Agreement Amended and Restated | |||||||||||||
integer | ||||||||||||||||
Financing Agreements (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Formula-based secured debt financing capacity | ' | ' | ' | $5,000,000 | $3,500,000 | ' | ' | ' | ' | $3,500,000 | ' | ' | ' | ' | ' | ' |
Financing agreement, maturity date | ' | ' | ' | ' | ' | ' | ' | 30-Nov-16 | ' | ' | ' | ' | ' | ' | ' | ' |
Financing agreement, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 2,970,000 | ' | ' | ' | ' | ' | ' | ' |
Borrowings, collateral, description | ' | ' | ' | ' | ' | 'Borrowings were secured by substantially all assets. | ' | 'Borrowings under the Financing Agreement are collateralized by substantially all the assets of the Company. | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | 'Prime plus 6% | ' | 'Loans outstanding under the Financing Agreement bear interest at a rate of the Prime Rate (as defined in the Financing Agreement) plus 3.25% (the "Effective Rate") or on Over-advances (as defined in the Financing Agreement), if any, at a rate of the Effective Rate plus 3%. | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.25% |
Interest amount as per amended and restated document | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000 |
Loan facility, borrowing capacity, description | ' | ' | ' | ' | ' | 'On May 17, 2012, the agreement was amended and restated. The amended and restated documents reduced the interest rate to prime plus 6%, subject to a minimum of 9.25% and also not less than $8,000 per month. The loan facility allowed borrowing of 90% of eligible domestic receivables. In addition, the loan facility allowed borrowing of 90% of eligible foreign receivables to a maximum of $500,000 and 25% of eligible inventory to a maximum of 20% of the amount available on receivables. | ' | ' | ' | ' | ' | ' | ' | 'The Company was obligated to pay monthly interest equal to 10% per annum calculated on a 360 day year of the outstanding loan balance. Principal was payable in 29 equal monthly installments of $33,333, beginning on November 15, 2013 and subsequently on the 15th day of each month thereafter, until paid in full. | 'On April 30, 2014 the note was paid in full. | ' |
Credit facility, covenant terms | ' | ' | ' | ' | ' | ' | 'On December 18, 2012, the agreement was amended in exchange for a fee of $7,500 to reduce the minimum Tangible Net Worth covenant to $1,300,000. | 'The Financing Agreement contains other financial and restrictive covenants, including, among others, covenants limiting our ability to incur indebtedness, guarantee obligations, sell assets, make loans, enter into mergers and acquisition transactions and declare or make dividends. | ' | ' | ' | ' | ' | ' | ' | ' |
Fee paid to amend financing agreement | ' | ' | ' | ' | ' | ' | 7,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tangible net worth | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale of common stock and warrants | 1,561,000 | 2,998,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum secured financing under agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' |
Frequency of periodic payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Monthly | ' | ' | ' |
Number of installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | ' | ' | ' |
Date of first required payment, principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jul-12 | ' | ' | ' |
Proceeds from sale of equipment and furniture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' |
Repayment of Note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' |
Sale leaseback transaction, lease terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The Company entered into an agreement with Mr. Sheerr to leaseback the equipment and furniture that was sold to Mr. Sheerr on October 31, 2013. The lease is for a term of 60 months and the Company is obligated to pay approximately $7,500 per month for the term of the lease. The Company has an option to extend the lease for an additional 2 year period. | ' | ' |
Sale leaseback, monthly rental payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500 | ' | ' |
Sale leaseback, gain on sale of assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 139,000 | ' | ' |
Sale leaseback, deferred gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 322,000 | ' |
Sale leaseback, portion of deferred gain in accrued liabilities | 929,000 | ' | 684,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,000 | ' |
Sale leaseback, portion of deferred gain in other long term liabilities | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' |
Amount borrowed under agreement | ' | ' | ' | ' | ' | ' | ' | ' | 3,327,000 | ' | 3,190,000 | 3,143,000 | 2,000,000 | 966,667 | ' | ' |
Principal amount due per month | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,333 | 33,333 | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $122,000 | ' | ' |
Weighted average interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 9.40% | ' | 9.70% | ' | ' | ' | ' | ' |
Financing_Agreements_Receivabl
Financing Agreements - Receivables (Details Narrative) (Shoreline Memory, USD $) | 1 Months Ended | 12 Months Ended | ||||||
Jul. 30, 2012 | Apr. 30, 2013 | Oct. 31, 2013 | Jul. 31, 2013 | Mar. 27, 2013 | Feb. 22, 2013 | Feb. 19, 2013 | Jul. 31, 2012 | |
Warrant | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Receivable (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock called by warrants, percentage | 30.00% | ' | ' | ' | ' | ' | ' | ' |
Convertible Senior Promissory Note | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Receivable (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Amount to be lend under Convertible Senior Promissory Note | ' | ' | ' | ' | ' | ' | ' | $1,500,000 |
Note receivable, interest rate description | 'Prime plus 3.0% | ' | ' | ' | ' | ' | ' | ' |
Terms of advance under the note | 'Each time the Company advanced money under the note, the Company was granted 1% of the outstanding Common Stock of Shoreline for every $100,000 advanced up to a maximum of 15%. This was in addition to the 15% allowable under the conversion of the note and the warrant to acquire 30% of Shoreline Common Stock. The conversion is at the rate of 1% of the outstanding Common Stock for each $100,000 converted up to a maximum of 15%. | ' | ' | ' | ' | ' | ' | ' |
Note receivable maturity period | '3 years | ' | ' | ' | ' | ' | ' | ' |
Note receivable collateral, description | 'The note was secured by all the assets of Shoreline and Shoreline Capital Management Ltd. ("Shoreline Capital") as guarantor. | ' | ' | ' | ' | ' | ' | ' |
Convertible terms, description | 'Also executed with the note was a warrant to purchase 30% of the outstanding Common Stock of Shoreline at the time of exercise and the warrant expires sixty days after the third anniversary of the closing of the transaction. The warrant prescribed a formula to determine the price per share at the time of exercise. If all the amounts under the note were advanced and converted and the full warrant was exercised, the Company would have owned 60% of the outstanding Common Stock of Shoreline. | ' | ' | ' | ' | ' | ' | ' |
Partial repayments of note receivable | ' | ' | 162,000 | ' | 225,000 | 200,000 | 50,000 | ' |
Termination agreement, description | ' | 'The Company reached an agreement to terminate its relationship with Shoreline. At closing, the Company received an additional $225,000 as a partial repayment of the loan in connection with the termination of all agreements with Shoreline. The remaining $275,000 was scheduled to be repaid in accordance with the amended and restated promissory note on July 31, 2013. The promissory note bears interest at the rate of 6% and is guaranteed by Shoreline Memory, Inc., Shoreline Capital Management Ltd and Trevor Folk. The Company reserved the remaining $275,000 on July 31, 2013. The Company received $162,000 as a final settlement for the note on November 1, 2013. | ' | ' | ' | ' | ' | ' |
Allowance for uncollectible notes receivable | ' | ' | ' | 275,000 | ' | ' | ' | ' |
Convertible Senior Promissory Note | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Receivable (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Amount advanced under the note | ' | ' | ' | ' | ' | ' | ' | 375,000 |
Convertible Senior Promissory Note | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Receivable (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Amount advanced under the note | ' | ' | ' | ' | ' | ' | ' | $375,000 |
Securities_Purchase_Agreement_
Securities Purchase Agreement (Details Narrative) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||
Apr. 30, 2014 | Apr. 30, 2012 | Mar. 18, 2013 | 11-May-11 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 20, 2014 | Sep. 23, 2013 | Sep. 18, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | |
Securities Purchase Agreement | Securities Purchase Agreement | Securities Purchase Agreement | Securities Purchase Agreement | Securities Purchase Agreement | Securities Purchase Agreement | Securities Purchase Agreement | Warrants #1 | Warrants #2 | |||
Securities Purchase Agreement of May 11, 2011 (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock sold | ' | ' | ' | 295,833 | 219,754 | 350,000 | ' | ' | ' | ' | ' |
Number of common stock called by warrants | ' | ' | ' | 221,875 | ' | ' | ' | 350,000 | ' | ' | ' |
Net proceeds from sale of common stock and warrants | $1,561,000 | $2,998,000 | ' | $2,998,000 | ' | $695,491 | ' | ' | ' | ' | ' |
Combination of securities offered in Securities Purchase Agreement, description | ' | ' | ' | 'The common stock and warrants were sold in fixed combinations, with each combination consisting of one share of common stock and 0.75 of one warrant, with each whole warrant exercisable for one share of common stock. | ' | 'The Company offered 350,931 shares of common stock and 350,931 common stock warrants to certain investors. | ' | ' | ' | ' | ' |
Purchase price per fixed combination | ' | ' | ' | 11.28 | 3 | 2.3 | ' | ' | ' | ' | ' |
Description of period for exercisability of warrants | ' | ' | ' | 'The warrants became exercisable six months and one day following the closing date of the Offering and will remain exercisable for five years thereafter. | ' | 'The exercisability of the warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99% of the Common Stock. After the one year anniversary of the initial exercise date of the warrants, the Company had the right to call the warrants for cancellation for $.001 per share in the event that the volume weighted average price of the Common Stock for 20 consecutive trading days exceeds $10.00. | ' | ' | ' | ' | ' |
Warrants exercised | ' | ' | ' | ' | 86,100 | ' | ' | ' | ' | ' | ' |
Exercise price of warrants | ' | ' | ' | $13.56 | ' | ' | $3.50 | ' | ' | $13.56 | $3.50 |
Proceeds from exercise of warrants | ' | ' | ' | ' | 306,350 | ' | ' | ' | ' | ' | ' |
Stock warrants outstanding | 485,775 | ' | ' | ' | ' | ' | ' | ' | ' | 221,875 | 263,900 |
Common stock issued upon exercise of warrants | ' | ' | ' | ' | 86,100 | ' | ' | ' | ' | ' | ' |
Percentage of holding in common stock after which exercisability of warrant may be limited | ' | ' | ' | 4.99% | ' | ' | ' | ' | ' | ' | ' |
Right to call warrants for cancellation, description | ' | ' | ' | 'After the one year anniversary of the initial exercise date of the warrants, the Company has the right to call the warrants for cancellation for $.006 per share in the event that the volume weighted average price of the Company's Common Stock for 20 consecutive trading days exceeds $27.12 | ' | ' | ' | ' | ' | ' | ' |
Estimated offering expenses | ' | ' | ' | ' | ' | ' | $559,000 | ' | $807,000 | ' | ' |
Stock split, description | ' | ' | 'All prices have been adjusted to reflect the reverse 6-for-1 stock split which was effective March 18, 2013. | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Sheerr Memory | ' | ' | ' |
Related Party Transactions (Textual) [Abstract] | ' | ' | ' |
Purchase of inventories for resale | $3,144,000 | $3,158,000 | $5,400,000 |
Accounts payable | 271,000 | 158,000 | ' |
Keystone Memory Group | ' | ' | ' |
Related Party Transactions (Textual) [Abstract] | ' | ' | ' |
Purchase of inventories for resale | 1,058,000 | 564,000 | 290,000 |
Accounts payable | $27,000 | $0 | ' |
Note and Security Agreement | Mr. Sheerr | ' | ' | ' |
Related Party Transactions (Textual) [Abstract] | ' | ' | ' |
Trade terms with related party | 'Sheerr Memory offers the Company trade terms of net 30 days and all invoices are settled in the normal course of business. No interest is paid. | ' | ' |
Income_Taxes_Income_tax_expens
Income Taxes - Income tax expense (Details) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Current: | ' | ' | ' |
Federal | ' | ' | ' |
State | ' | 5,000 | 5,000 |
Total Current | ' | 5,000 | 5,000 |
Deferred: | ' | ' | ' |
Federal | ' | ' | ' |
State | ' | ' | ' |
Total Deferred | ' | ' | ' |
Total income tax expense | ' | $5,000 | $5,000 |
Income_Taxes_Income_tax_expens1
Income Taxes - Income tax expense differs from expected tax expense (Details) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal income tax at statutory rates | ($879,000) | ($1,459,000) | ($1,106,000) |
State income taxes (net of Federal income tax benefit) | -179,000 | -249,000 | -193,000 |
Other | -105,000 | 52,000 | -47,000 |
Total income tax expense (benefit) before provision for valuation allowance | -1,163,000 | -1,656,000 | -1,346,000 |
Changes in valuation allowance | 1,163,000 | 1,661,000 | 1,351,000 |
Total income tax expense | $0 | $5,000 | $5,000 |
Income_Taxes_The_tax_effect_of
Income Taxes - The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Deferred tax assets: | ' | ' |
Compensated absences and severance, principally due to accruals for financial reporting purposes | $75,000 | $150,000 |
Stock-based compensation expense | 1,275,000 | 1,259,000 |
Accounts receivable, principally due to allowance for doubtful accounts and sales returns | 86,000 | 78,000 |
Property and equipment, principally due to differences in depreciation | 240,000 | 106,000 |
Intangible assets | 430,000 | 464,000 |
Inventories | 68,000 | 91,000 |
Domestic net operating losses | 10,134,000 | 9,089,000 |
Alternative minimum tax | 438,000 | 438,000 |
Other | 153,000 | 61,000 |
Deferred tax assets | 12,899,000 | 11,736,000 |
Valuation allowance | -12,899,000 | -11,736,000 |
Net deferred tax assets | ' | ' |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Valuation allowance | $1,163,000 | $1,661,000 |
Net operating loss carry-forwards | $25,600,000 | $23,500,000 |
Expiration of net operating loss carry-forwards for Federal tax purposes | 'between 2023 and 2033 | ' |
Expiration of net operating loss carry-forwards for State tax purposes | 'between 2016 and 2033 | ' |
Stock_Options_Stock_options_ac
Stock Options - Stock options activity table - Key Employees (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2009 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Stock Options | Stock Options | Stock Options | |||
Key Employees | Key Employees | Key Employees | |||
Shares | ' | ' | ' | ' | ' |
Beginning Balance (in shares) | ' | 311,575 | 280,242 | 252,983 | 260,867 |
Granted (in shares) | 8,333 | ' | ' | 41,667 | 48,000 |
Exercised (in shares) | ' | ' | ' | ' | ' |
Expired (in shares) | ' | -47,331 | -34,665 | -14,408 | -55,884 |
Ending balance (in shares) | ' | 264,244 | 245,577 | 280,242 | 252,983 |
Exercise price per share | ' | ' | ' | ' | ' |
Beginning balance (in dollars per share) lower range | ' | ' | $2.44 | $6.36 | $7.68 |
Beginning balance (in dollars per share) upper range | ' | ' | $24.54 | $24.54 | $47.88 |
Granted (in dollars per share) lower range | ' | ' | ' | $4.14 | $6.36 |
Granted (in dollars per share) upper range | ' | ' | ' | $4.14 | $6.72 |
Exercised (in dollars per share) lower range | ' | ' | ' | ' | ' |
Exercised (in dollars per share) upper range | ' | ' | ' | ' | ' |
Expired (in dollars per share) lower range | ' | ' | $6.72 | $6.72 | $6.72 |
Expired (in dollars per share) upper range | ' | ' | $24.54 | $24.54 | $47.88 |
Ending balance (in dollars per share) lower range | ' | ' | $2.44 | $2.44 | $6.36 |
Ending balance (in dollars per share) upper range | ' | ' | $19.20 | $24.54 | $24.54 |
Weighted average exercise price per share | ' | ' | ' | ' | ' |
Beginning balance (in dollars per share) | ' | ' | $12.04 | $13.70 | $16.72 |
Granted (in dollars per share) | ' | ' | ' | $4.14 | $6.59 |
Exercised (in dollars per share) | ' | ' | ' | ' | ' |
Expired (in dollars per share) | ' | ' | $10.41 | $15.49 | $21.67 |
Ending balance (in dollars per share) | ' | $12.42 | $12.27 | $12.04 | $13.70 |
Stock_Options_Stock_options_ac1
Stock Options - Stock options activity table - Non employees (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2009 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Stock Options | Stock Options | Stock Options | |||
Non Employees Directors | Non Employees Directors | Non Employees Directors | |||
Shares | ' | ' | ' | ' | ' |
Beginning Balance (in shares) | ' | 311,575 | 31,333 | 38,000 | 47,333 |
Granted (in shares) | 8,333 | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | ' |
Expired (in shares) | ' | -47,331 | -12,666 | -6,667 | -9,333 |
Ending balance (in shares) | ' | 264,244 | 18,667 | 31,333 | 38,000 |
Exercise price per share | ' | ' | ' | ' | ' |
Beginning balance (in dollars per share) lower range | ' | ' | $11.94 | $11.94 | $11.94 |
Beginning balance (in dollars per share) upper range | ' | ' | $24.54 | $24.54 | $47.88 |
Granted (in dollars per share) lower range | ' | ' | ' | ' | ' |
Granted (in dollars per share) upper range | ' | ' | ' | ' | ' |
Exercised (in dollars per share) lower range | ' | ' | ' | ' | ' |
Exercised (in dollars per share) upper range | ' | ' | ' | ' | ' |
Expired (in dollars per share) lower range | ' | ' | $15.42 | $17.94 | $28.20 |
Expired (in dollars per share) upper range | ' | ' | $24.54 | $19.98 | $47.88 |
Ending balance (in dollars per share) lower range | ' | ' | $11.94 | $11.94 | $11.94 |
Ending balance (in dollars per share) upper range | ' | ' | $15.42 | $24.54 | $24.54 |
Weighted average exercise price per share | ' | ' | ' | ' | ' |
Beginning balance (in dollars per share) | ' | ' | $15.60 | $16.23 | $20.25 |
Granted (in dollars per share) | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | ' |
Expired (in dollars per share) | ' | ' | $17.34 | $19.16 | $36.64 |
Ending balance (in dollars per share) | ' | $12.42 | $14.43 | $15.60 | $16.23 |
Stock_Options_Stock_option_exp
Stock Options - Stock option expense (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2009 | Apr. 30, 2014 | Apr. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of options outstanding | ' | 264,244 | 311,575 |
Number of shares granted | 8,333 | ' | ' |
Options expiration period | 'TEN YEARS AFTER DATE OF GRANT | ' | ' |
Fair value of options | $121,000 | ' | ' |
Stock Options | 2001 Incentive and Non-statutory Stock Option Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares allowed for granting under the plan | ' | 300,000 | ' |
Number of options outstanding | ' | 239,246 | ' |
Number of shares granted | ' | 25,000 | ' |
Stock Options | 2001 Incentive and Non-statutory Stock Option Plan | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting periods for options | ' | '1 year | ' |
Stock Options | 2001 Incentive and Non-statutory Stock Option Plan | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting periods for options | ' | '5 years | ' |
Stock Options | 2011 Incentive and Non-statutory Stock Option Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares allowed for granting under the plan | ' | 33,333 | ' |
Number of options outstanding | ' | 12,500 | ' |
Nonqualified Stock Options | Director | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of options outstanding | ' | 18,667 | ' |
Options expiration period | ' | 'EXPIRE EITHER FIVE OR TEN YEARS AFTER DATE OF GRANT. | ' |
Nonqualified Stock Options | Minimum | Director | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting periods for options | ' | '1 year | ' |
Nonqualified Stock Options | Maximum | Director | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting periods for options | ' | '2 years | ' |
Accrued_Liabilities_Accrued_li
Accrued Liabilities - Accrued liabilities (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Payables and Accruals [Abstract] | ' | ' |
Payroll, including vacation | $226,000 | $253,000 |
Commissions | 75,000 | 60,000 |
Bonuses | 70,000 | 50,000 |
Lease abandonment | ' | 100,000 |
Lease legal settlement | 225,000 | ' |
Deferred gain on equipment sale | 72,000 | ' |
Other | 261,000 | 221,000 |
Total accrued liabilities | $929,000 | $684,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future minimum lease payments (Details) (USD $) | Apr. 30, 2014 |
2015 | $391,000 |
2016 | 383,000 |
2017 | 158,000 |
2018 | 90,000 |
2019 | 45,000 |
Thereafter | ' |
Total | 1,067,000 |
Commitments | Non-Related Party | ' |
2015 | 301,000 |
2016 | 293,000 |
2017 | 68,000 |
2018 | ' |
2019 | ' |
Thereafter | ' |
Total | 662,000 |
Commitments | Related Party | ' |
2015 | 90,000 |
2016 | 90,000 |
2017 | 90,000 |
2018 | 90,000 |
2019 | 45,000 |
Thereafter | ' |
Total | $405,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Narrative) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Rental expense | $419,000 | $512,000 | $516,000 |
Open purchase orders outstanding | 1,758,000 | ' | ' |
Royalties charged to operations | $60,000 | $92,000 | $94,000 |
Legal Proceedings | ' | ' | ' |
Location of legal proceeding | 'United States District Court for the Eastern District of Pennsylvania | ' | ' |
Ruling description | 'On July 30, 2013, the District Judge ruled that the Company is required to restore the property to the condition that existed as of January 11, 2006, without making any factual findings on the extent of the CompanyBs liability. | ' | ' |
Settlement agreement terms | 'The Company has agreed in principle, to settle this matter, which will require three (3) payments of $75,000 to be remitted to the landlord (i) on the signing of the Settlement Agreement; (ii) within forty five (45) days of the Settlement Agreement; and (iii) within ninety (90) days of the Settlement Agreement. The Company also agreed to relinquish its right to the $52,000 security deposit in the possession of the landlord. | ' | ' |
Settlement agreement date | 'on or before August 15, 2014 | ' | ' |
Employee_Benefit_Plan_Details_
Employee Benefit Plan (Details Narrative) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Company contribution to plan | 4.50% | ' | ' |
Company matching contributions | $180,000 | $201,000 | $248,000 |
Revenue_by_geographic_location
Revenue by geographic location (Details) (USD $) | 12 Months Ended | |||||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | ||||
Revenues | $30,399,000 | $27,616,000 | $36,079,000 | |||
Total assets | 7,572,000 | 8,165,000 | 11,430,000 | |||
Long lived assets | 1,353,000 | 1,697,000 | 2,503,000 | |||
United States | ' | ' | ' | |||
Revenues | 24,917,000 | 21,702,000 | 27,980,000 | |||
Total assets | 7,556,000 | 8,153,000 | 11,373,000 | |||
Long lived assets | 1,353,000 | 1,697,000 | 2,503,000 | |||
Europe | ' | ' | ' | |||
Revenues | 3,431,000 | 3,983,000 | 5,393,000 | |||
Total assets | 16,000 | 12,000 | 54,000 | |||
Long lived assets | 0 | 0 | 0 | |||
Other | ' | ' | ' | |||
Revenues | 2,051,000 | [1] | 1,931,000 | [1] | 2,706,000 | [1] |
Total assets | 0 | [1] | 0 | [1] | 3,000 | [1] |
Long lived assets | $0 | $0 | $0 | |||
[1] | Principally Asia Pacific Region |