Annual report pursuant to Section 13 and 15(d)

Note 17 ??? Share Based Awards

v3.23.2
Note 17 – Share Based Awards
 12 Months Ended
Apr. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Note 17 – Share Based Awards

Note 17 – Share Based Awards

 

The 2019 Equity Incentive Plan (the "Plan") allows us to incentivize key employees, consultants, and directors with long term compensation awards such as stock options, restricted stock, and restricted stock units (collectively, the "Awards"). The number of shares issuable in connection with Awards under the Plan may not exceed 8,750,000.

 

A. Options 

 

The range of assumptions used to calculate the fair value of options granted during the year ended April 30 was:

 

      2023       2022  
Exercise Price   $ 0.89 – 2.38     $ 1.69 – 2.82  
Stock price on date of grant     0.89 – 2.38       1.69 – 2.82  
Risk-free interest rate     3.34 – 4.18%     0.47 – 1.91%  
Dividend yield     —         —    
Expected term (years)     6.25 – 8.25       3.75 – 10.00  
Volatility     245.57 – 260.06%     210.68 – 273.46%  

  

A summary of options activity under the Plan since April 30, 2021 is as follows:

 

  Shares   Weighted-Average Exercise Price   Weighted-Average Remaining Contractual Term   Aggregate Intrinsic Value
Outstanding as of April 30, 2021     2,197,475     $ 1.79       8.68        4,943,870   
Granted     1,681,000       2.58                  
Exercised     (150,000 )      2.49                  
Forfeited or expired     (34,333 )      2.11                  
Outstanding as of April 30, 2022     3,694,142     2.17       8.56        1,407,545   
Granted     1,503,500       1.40                  
Exercised     —         —                    
Forfeited or expired     (412,833 )      2.67                  
Outstanding as of April 30, 2023     4,784,809     1.88       8.72     74,586  
Exercisable as of April 30, 2023     3,025,184     $ 2.00       7.25     $ 74,586  

   

The aggregate intrinsic value of outstanding options represents the excess of the stock price at the indicated date over the exercise price of each option. As of April 30, 2023 and April 30, 2022, there was $2,940,239 and $3,357,701 of unrecognized stock-based compensation expense related to unvested stock options which is expected to be recognized over the weighted average periods of 1.94 and 2.20 years, respectively.

 

B. Restricted Stock

 

A summary of restricted stock activity under the Plan since April 30, 2021 was:

 

  Shares   Weighted Average Grant-Date Fair Value Per Share
Unvested and outstanding as of April 30, 2021     687,500     $ 2.69  
Granted     995,659       2.55  
Vested     (599,484 )     2.64  
Forfeited     —         —    
Unvested and outstanding as of April 30, 2022     1,083,675       2.59  
Granted     780,884       2.14  
Vested     (1,062,372 )     2.42  
Forfeited     (21,127 )     2.13  
Unvested and outstanding as of April 30, 2023     781,060     $ 2.44  

  

As of April 30, 2023 and April 30, 2022, there was $1,385,325 and $2,544,105 of unrecognized stock-based compensation expense related to unvested restricted stock units which is expected to be recognized over the weighted average periods of 1.22 and 1.84 years, respectively.

 

C. Stock Compensation

 

Stock compensation expense by functional category was:

 

    2023   2022
General and administrative   $ 1,608,715     $ 1,521,951  
Research and development     692,947       516,456  
Operations     788,909       783,781  
Sales and marketing     566,153       469,447  
 Total   $ 3,656,724     $ 3,291,635  

 

Stock compensation expense pertaining to options totaled $1,617,982 and $1,447,115 for the year ended April 30, 2023 and 2022, respectively. Stock compensation expense pertaining to restricted stock totaled $2,038,742 and $1,844,520 for the year ended April 30, 2023 and 2022, respectively.