|3 Months Ended|
Jul. 31, 2016
Note 4: Stockholders Equity
Series B preferred shares
During the quarter ended July 31, 2016, the holders of Series B Preferred Stock converted 279,887 Series B Preferred shares into 1,865,913 shares of common stock. The converted value for each Series B Preferred Share is approximately $12.20 or $3,414,621 and resulted in an offsetting increase to Additional Paid in Capital in the July 31, 2016 consolidated balance sheet. As of July 31, 2016, there were 51,672 shares of Series B Preferred Stock outstanding convertible into approximately 344,480 shares of common stock.
Bonus Shares - Bonus Shares are an award to an eligible person of shares for services to be rendered or for past services already rendered to the Company. The Board will determine the number of shares to be awarded to the eligible individual, in accordance with any restrictions thereon. These restrictions may be based upon completion of a specified number of years of service with the Company or upon satisfaction of performance goals based on performance factors. Payment for the Bonus Shares may be made in the form of cash, whole shares, or a combination thereof, based on the fair market value of the shares on the date of payment, as determined in the sole discretion of the Board.
Between May 1, 2016 and July 29, 2016 the Company awarded 188,333 restricted shares of the Companys common stock to employees, executive officers and directors. The Companys condensed consolidated statements of operations for the three months ended July 31, 2016 include approximately $429,000 of stock-based compensation expense. These stock grants have been classified as equity instruments and, as such, a corresponding increase has been reflected in additional paid-in capital in the accompanying consolidated balance sheets.
At July 31, 2016 the Company had 133,667 warrants outstanding with exercise prices between $7.50 and $10.50. A summary of warrant activity for the three months ended July 31, 2016 is as follows:
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://www.xbrl.org/2003/role/presentationRef