Stock Compensation Information | 6 Months Ended |
Oct. 31, 2013 |
Stock Compensation Information [Abstract] | ' |
Stock Compensation Information | ' |
2.Stock Compensation Information |
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Stock-based compensation expense is determined from the estimated fair value of stock-based awards and is recognized over the vesting period of the awards, net of estimated forfeitures. For the three and six months ended October 31, 2013 and 2012, stock-based compensation expense was comprised of the following (in thousands): |
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| | Three Months Ended | | Six Months Ended |
| | October 31, | | October 31, |
| | 2013 | | 2012 | | 2013 | | 2012 |
Direct costs of revenue | $ | 4 | $ | 8 | $ | 9 | $ | 18 |
Product development | | 6 | | 23 | | 19 | | 48 |
Selling, general, and administrative | | 29 | | 123 | | 64 | | 264 |
Total equity-based compensation | $ | 39 | $ | 154 | $ | 92 | $ | 330 |
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The following table shows remaining unrecognized compensation expense on a pre-tax basis related to all types of nonvested equity awards outstanding as of October 31, 2013. This table does not include an estimate for grants that may be issued in the future (in thousands). |
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Fiscal Year Ending April 30, | | | Amount | | | | | |
Remainder of 2014 | | $ | 77 | | | | | |
2015 | | | 101 | | | | | |
2016 | | | 77 | | | | | |
2017 | | | 30 | | | | | |
2018 | | | 5 | | | | | |
Total | | $ | 290 | | | | | |
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The cost above is expected to be recognized over a weighted-average period of 1.6 years. |
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We estimate the fair value of our stock-based awards using the Black-Scholes option pricing model. The Black-Scholes option pricing model incorporates various assumptions including expected term, interest rates and expected volatility. Changes in the assumptions can materially affect the fair value estimates and ultimately how much we recognize as stock-based compensation expense. The fair values of our stock options are estimated at the date of grant. The weighted-average input assumptions used and resulting fair values for six months ended October 31, 2013 and 2012, were as follows: |
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| | Six Months Ended | | | | |
| | October 31, | | | | |
| | 2013 | | 2012 | | | | |
Expected term (in years) | | 4.0 | | 4.0 | | | | |
Risk-free interest rate | | 0.9 | % | 0.5 | % | | | |
Volatility | | 52 | % | 80 | % | | | |
Dividend yield | | - | | - | | | | |
Weighted-average fair value of stock options granted during the period | $ | 0.49 | $ | 1.02 | | | | |
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We base our expected term assumption on our historical experience and on the terms and conditions of the stock awards we grant to employees. The risk-free interest rate is based upon United States Treasury interest rates appropriate for the expected term of the awards. The expected volatility is based on the historical volatility of our common stock over the most recent period commensurate with the estimated expected term of our stock options. We did not pay common stock cash dividends in fiscal 2013 or year to date in fiscal 2014, and do not anticipate paying any cash dividends on common stock in the foreseeable future. Accordingly, an expected dividend yield of zero is used in the Black-Scholes option pricing model. |
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We recognize expense only for the stock-based awards that are ultimately expected to vest. Therefore, we have developed an estimate of the number of awards expected to be forfeited prior to vesting (“forfeiture rate”). We use a forfeiture rate that is estimated based on historical forfeiture experience, and is applied to all stock-based awards. The forfeiture rate used for the six months ending October 31, 2013 and 2012 is 20%. We recognize stock-based compensation cost as an expense ratably on a straight-line basis over the requisite service period. |
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A summary of our stock option activity for the six months ended October 31, 2013 is as follows: |
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| | | Weighted- | | Weighted- | | | |
| | | average | | average remaining | | Aggregate | |
| | | exercise | | contractual | | intrinsic | |
| Shares | | price | | term (in years) | | value (1) | |
Outstanding at April 30, 2013 | 1,814,559 | $ | 2.83 | | 6.92 | $ | 15,551 | |
Granted | 292,000 | | 1.21 | | | | | |
Exercised | - | | - | | | | | |
Cancelled/expired | -585,657 | | 2.85 | | | | | |
Outstanding at October 31, 2013 | 1,520,902 | | 2.5 | | 7.08 | | - | |
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(1) Aggregate intrinsic value is defined as the difference between the current market value and the exercise price and is estimated using the closing price of our common stock on the last trading day of the periods ended as of the dates indicated. |
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A summary of our non-vested stock option activity for the period ended October 31, 2013 is as follows: |
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| | | Weighted- | | | | | |
| | | average | | | | | |
| | | fair | | | | | |
| Shares | | value | | | | | |
Non-vested at April 30, 2013 | 447,516 | | 1.32 | | | | | |
Granted | 292,000 | | 0.47 | | | | | |
Vested | -107,224 | | 1.37 | | | | | |
Cancelled/expired | -140,504 | | 1.12 | | | | | |
Non-vested at October 31, 2013 | 491,788 | | 0.77 | | | | | |
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There were no awards exercised during the six months ended October 31, 2013 and 2012. The total fair value of awards vested during the six months ended October 31, 2013 and 2012 was $0.1 million and $0.4 million, respectively. The total fair value of awards granted during the six months ended October 31, 2013 and 2012 was $0.1 million and $0.4 million, respectively. |
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