NOTE 20.WARRANTS
Warrants Issued for Compensation
During the year ended April 30, 2013, 24,000 director warrants expired.
The fair value was estimated on the date of the grant using the Black-Scholes option-pricing model. The following table displays the weighted average assumptions that have been applied to estimate the fair value of warrants on the date of grant for the year ended April 30, 2013:
| April 30, 2013 | |
| Expected life (years) | 5 |
| Risk-free interest rate | 2.49% |
| Expected volatility | 67.84% |
| Expected dividend yield | 0% |
(1) Expected Life: The expected life was determined based on the option's contractual term and employees' expected early exercise and post-vesting employment termination behavior.
(2) Risk Free Rate: The risk-free interest rate was based on U.S. Treasury yields with a remaining term that corresponds to the expected term of the option calculated on the granted date.
(3) Expected Volatility: Expected volatility is computed based on the standard deviation of the continuously compounded rate of return of days when the stock price changed over the historical period of the expected life of the options.
(4) Dividend Yield: The expected dividend yield is zero. The Company has not paid a dividend and does not anticipate paying dividends in the foreseeable future.
Following is a summary of the status of warrants outstanding at April 30, 2013:
| Type of Warrants |
| Range of Exercise Price |
| Total Warrants Outstanding |
| Weight Average Remaining Life (Years) |
| Weight Average Exercise Price |
| Directors - Class E | $ | 3.00 - 9.34 | 185,916 | 1.74 | $ | 3.00 | ||
| Non-employee | $ | 2.25 - 9.51 | 12,000 | 1.11 | $ | 3.43 | ||
| Total | 197,916 | 1.70 | $ | 3.03 |
Warrants Issued to Investors
On December 10, 2012, the Company issued 290,323 warrants to a lender at $1.94 per share. The exercise price is $1.94 per common stock and the warrants will expire in three years.
On January 9, 2013, the Company issued 111,271 three year warrants to an investor to purchase shares of the Company's common stock pursuant to a stock purchase agreement. The exercise price is $2.10 per share and the warrants are exercisable immediately.
On February 5, 2013, the Company issued 40,000 three year warrants to investor to purchase shares of the Company's common stock pursuant to a stock purchase agreement. The exercise price is $2.00 per share and the warrants are exercisable immediately.
During the fiscal year ended April 30, 2013, no investor warrants have been exercised. The weighted average fair value of warrants granted during FY 2013 was $1.99 per share.
The table below is a summary of all warrants activity as of April 30, 2013:
| Warrants Roll-forward Summary | |||||
| Units | Weighted Average Exercise Price | Weighted Average Remaining Life (in Years) | |||
| Outstanding at April 30, 2010 | 3,385,329 | $2.09 | 2.55 | ||
| Issued | 82,000 | $9.50 | 2.55 | ||
| Exercised | (2,442,855) | $3.13 | - | ||
| Outstanding at April 30, 2011 | 1,024,474 | $4.37 | 2.68 | ||
| Issued | 96,218 | $4.00 | 5.01 | ||
| Exercised | (286,000) | $1.33 | - | ||
| Extend | 36,000 | $0.83 | - | ||
| Expired | (80,000) | $9.50 | - | ||
| Outstanding at April 30, 2012 | 790,692 | $4.75 | 2.88 | ||
| Issued | 441,594 | $1.99 | 2.72 | ||
| Exercised | - | - | - | ||
| Expired | (24,000) | $3.00 | - | ||
| Outstanding at April 30, 2013 | 1,208,286 | $3.77 | 2.02 | ||
| Exercisable at April 30, 2013 | 1,208,286 | $3.77 | 2.02 | ||