Quarterly report pursuant to Section 13 or 15(d)

STOCK OPTION COMPENSATION EXPENSE

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STOCK OPTION COMPENSATION EXPENSE
6 Months Ended
Oct. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK OPTION COMPENSATION EXPENSE
NOTE 11- STOCK OPTION COMPENSATION EXPENSE
 
On September 29, 2015, pursuant to and subject to the available number of shares reserved under the Company’s 2014 Equity Incentive Plan, the Company issued 2,573,000 non-qualified options (“September Options”) with a term of 10 years and an exercise price of $1.32 to the Company’s directors and employees. 1,191,500 of the September Options vested immediately, 655,250 of the September Options will vest on April 30, 2016, and the remaining 726,250 of the September Option vest upon either the Company completing a change in control merger by September 1, 2016 or achieving $30 million in revenue for the fiscal year May 1, 2015 to April 30, 2016.
 
On August 6, 2015, pursuant to and subject to the available number of shares reserved under the Company’s 2014 Equity Incentive Plan, the Company issued 110,000 non-qualified options (“August Options”) with a term of 10 years and an exercise price of $1.19 to the Company’s directors and employees. The August Options vested immediately.
 
The aggregate grant date fair value of the August Options and September Options were approximately $2,699,000.
 
The fair value of options granted during the six months ended October 31, 2015 was estimated using the following assumptions:
  
 
 
For  the Six
 
 
 
Months Ended
 
 
 
October 31, 2015
 
Exercise price
 
 
$1.19 - $1.32
 
Expected stock price volatility
 
 
101.7% - 104.1
%
Risk-free rate of interest
 
 
1.4% - 1.6
%
Expected term (years)
 
 
5.15
 
 
A summary of option activities under the Company’s employee stock option plan for the six months ended October 31, 2015 is presented below:
 
 
 
Number of
Shares
 
Weighted
Average
Exercise
Price
 
Total
Intrinsic
Value
 
Weighted
Average
Remaining
Contractual
Life (in
years)
 
Outstanding as of April 30, 2015
 
 
40,688
 
$
18.79
 
$
-
 
 
5.88
 
Employee options granted
 
 
2,683,000
 
 
1.31
 
 
0.17
 
 
9.91
 
Forfeited/expired
 
 
(6)
 
 
61.82
 
 
-
 
 
-
 
Outstanding as of October 31, 2015
 
 
2,723,682
 
$
1.58
 
$
0.16
 
 
9.84
 
Options vested and exercisable
 
 
1,342,182
 
$
1.84
 
$
0.17
 
 
9.76
 
 
Stock-based compensation associated with the amortization of stock option expense was approximately $1,518,000 for the six months ended October 31, 2015 and is included in general and administration expense.
 
Estimated future stock-based compensation expense relating to unvested stock options is approximately $1,181,000. The weighted average remaining vesting period of options outstanding at October 31, 2015 is approximately 0.5 years.