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<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr valign="top"> <td align="left"> Note 2 </td> <td align="left" width="90%"> Significant Accounting Policies </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> These interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America and are stated in U.S. dollars except where otherwise disclosed. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for the period necessarily involves the use of estimates, which have been made using careful judgment. Actual results may vary from these estimates. </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities and commitments in the normal course of business. </td> </tr> </table>   <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> </td> <td valign="top" width="5%">a)</td> <td> Basis of Presentation </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, CounterPath Technologies Inc., a company existing under the laws of the province of British Columbia, Canada, and BridgePort Networks, Inc. incorporated under the laws of the state of Delaware. The results of NewHeights Software Corporation (which subsequently was amalgamated with another subsidiary to become CounterPath Technologies Inc.) are included from August 2, 2007, the date of acquisition. The results of FirstHand Technologies Inc. (which subsequently was amalgamated with CounterPath Technologies Inc.) and BridgePort Networks, Inc. are included from February 1, 2008, the date of acquisition. All inter-company transactions and balances have been eliminated. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> </table> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> </td> <td valign="top" width="5%">b)</td> <td> Interim Reporting </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> The information presented in the accompanying interim consolidated financial statements is without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> These statements reflect all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with accounting principles generally accepted in the United States of America. Except where noted, these interim financial statements follow the same accounting policies and methods of their application as the Company’s April 30, 2012 annual consolidated financial statements. All adjustments are of a normal recurring nature. It is suggested that these interim financial statements be read in conjunction with the Company’s April 30, 2012 annual consolidated financial statements. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> Operating results for the three months ended July 31, 2012 are not necessarily indicative of the results that can be expected for the year ending April 30, 2013. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> </table> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> </td> <td valign="top" width="5%">c)</td> <td> New Accounting Pronouncements </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> In May 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs , which aligns the fair value measurement and disclosure requirements in U.S. GAAP and the International Financial Reporting Standards (IFRSs). Many of the amendments in this ASU will not result in a change in requirements, but simply clarify existing requirements. The amendments in this ASU that do change a principle or requirement for measuring fair value or disclosing information about fair value measurements include the following: (1) the ASU permits an exception for measuring fair value when a reporting entity manages its financial instruments on the basis of its net exposure, rather than gross exposure, to those risks; (2) the ASU clarifies that the application of premiums and discounts in a fair value measurement is related to the unit of account for the asset or liability being measured at fair value; (3) the ASU prohibits blockage discounts for level 2 and 3 investments; and (4) the amendments expand the fair value measurement disclosures. The ASU is to be applied prospectively. For public entities, the ASU is effective during interim and annual periods beginning after December 15, 2011. </td> </tr> </table>   <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> In June 2011 the FASB issued Accounting Standards Update (ASU) 2011-05, Presentation of Comprehensive Income , which eliminates the option of presenting the components of other comprehensive income (OCI) as part of the statement of changes in stockholders’ equity. The ASU instead permits an entity to present the total of comprehensive income, the components of net income and the components of OCI either in a single continuous statement of comprehensive income or in two separate but consecutive statements. With either format, the entity is required to present each component of net income along with total net income, each component of OCI along with the total for OCI, and a total amount for comprehensive income. Also, the ASU requires entities to present, for either format, reclassification adjustments for items that are reclassified from OCI to net income in the statement(s) where the components of net income and the components of OCI are presented. This ASU is to be applied retrospectively. For public entities, the ASU is effective for interim and annual periods beginning after December 15, 2011. We early implemented the requirements and present net income and comprehensive income in a single continuous statement. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> In May 2011, the FASB issued Accounting Standards Update (ASU) 2011-04, "Fair Value Measurement (Topic 820), Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS." There are few differences between the ASU and IFRS 13. While the ASU is largely consistent with existing fair value measurement principles in U.S. GAAP, it expands ASC 820's existing disclosure requirements for fair value measurements and makes other amendments. The amendments in the update became effective for fiscal years and interim periods beginning after December 15, 2011. The Company has adopted this standard, and it did not materially impact the consolidated financial statements. In September 2011, the FASB issued Accounting Standards Update (ASU) 2011-08 to simplify how tests for potential goodwill impairment are performed. These amended standards permit an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit in which goodwill resides is less than its carrying value. For reporting units in which this assessment concludes it is more likely than not that the fair value is more than its carrying value, these amended standards eliminate the requirement to perform further goodwill impairment testing as required under the previous standards. The ASU is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 31, 2011. Early adoption was permitted, including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011 if an entity’s financial statements had not yet been issued. We have early adopted this standard on September 30, 2011 and it did not materially impact our consolidated financial statements. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> </table> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> </td> <td valign="top" width="5%">d)</td> <td> Derivative Financial Instruments </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> Foreign currency contracts are used by the Company to offset fluctuations in exchange rates. Our company’s foreign currency risk management program includes foreign currency derivatives with cash flow hedge accounting designation that utilizes foreign currency forward contracts to hedge exposures to the variability in the U.S. dollar equivalent of anticipated non-U.S. dollar-denominated cash flows. These instruments generally have a maturity of less than one year. For these derivatives, our company reports the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive income (loss) in stockholders’ equity and reclassifies it into earnings in the same period in which the hedged transaction affects earnings, and within the same line item on the consolidated statements of operations as the impact of the hedged transaction. There can be no assurance that our hedging program will not result in a negative impact on our earnings and earnings per share. We did not enter any foreign currency derivatives designated as cash flow hedges in the quarter ended July 31, 2012. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> We also routinely enter into foreign currency forward contracts, not designated as hedging instruments, to protect us from fluctuations in exchange rates. Gains or losses arising out of marked to market fair value valuation of forward contracts, not designated as hedges, are recognized in earnings. </td> </tr> </table>   </td> </tr> </table>   <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> </td> <td valign="top" width="5%">e)</td> <td> Goodwill and Intangible Assets </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> Goodwill represents the excess purchase price over the estimated fair value of net assets acquired as of the acquisition date. ASC Topic 350 ASC 350 requires goodwill to be tested for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the Company's business enterprise below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit, which is measured based upon, among other factors, market multiples for comparable companies as well as a discounted cash flow analysis </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> Management has determined that the Company currently has a single reporting unit which is CounterPath Corporation. If the recorded value of the assets, including goodwill, and liabilities (“net book value”) of the reporting unit exceeds its fair value, an impairment loss may be required. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> Goodwill of $6,339,717 (CDN$6,704,947) and $2,083,960 (CDN$2,083,752) was initially recorded in connection with the acquisition of NewHeights Software Corporation on August 2, 2007 and FirstHand Technologies Inc. on February 1, 2008. Translated to U.S. dollars using the period end rate, the goodwill balance at July 31, 2012 was $6,678,798 (CDN$6,704,947) (April 30, 2012 - $6,834,353) and $2,075,289 (CDN$2,083,752) (April 30, 2012 - $2,123,624), respectively. Management will perform its annual impairment test in its fiscal fourth quarter. No impairment charges were recorded for the three months ended July 31, 2012 and 2011. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> Intangible assets include the intangibles purchased in connection with the acquisition of NewHeights Software Corporation on August 2, 2007, and FirstHand Technologies Inc. and BridgePort Networks, Inc. on February 1, 2008. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> The intangible assets of NewHeights are reported at acquisition cost and include amounts initially allocated to acquired technologies of $3,454,839 (CDN$3,678,100) and customer asset of $2,283,908 (CDN$2,431,500). The acquired technologies are amortized based on their estimated useful life of four years and the customer asset is amortized on the basis of Management’s estimate of the future cash flows from this asset over approximately five years, which is Management’s estimate of the useful life of the customer asset. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> The intangible assets of FirstHand are reported at acquisition cost and include amounts initially allocated to acquired technologies of $2,804,700 (CDN$2,804,700) and customer asset of $587,000 (CDN$587,000). The acquired technologies are amortized based on their estimated useful life of four years and the customer asset is amortized on the basis of Management’s estimate of the future cash flows from this asset over approximately five years, which is Management’s estimate of the useful life of the customer asset. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> The intangible assets of BridgePort are being carried and reported at acquisition cost and include amounts initially allocated to acquired technologies of $476,703 and customer asset of $43,594. The acquired technologies are amortized based on their estimated useful life of four years and the customer asset is amortized on the basis of Management’s estimate of the future cash flows from this asset over approximately five years, which is Management’s estimate of the useful life of the customer asset. </td> </tr> </table>   <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> A summary of the Company’s intangible assets, net, at July 31, 2012 is as follows: </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Accumulated </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Accumulated </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Impairment </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Net Carrying </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Cost </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Amortization </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Charge </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Amount </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Acquired technologies</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   6,306,336 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   4,417,678 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   1,888,658 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> –</td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Customer assets</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2,727,679 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 1,482,512 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 1,216,028 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 29,139 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Intangible assets</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   9,034,015 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   5,900,190 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   3,104,686 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   29,139 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table> </td> </tr> </table>

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> </td> <td valign="top" width="5%">e)</td> <td> Goodwill and Intangible Assets </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> Goodwill represents the excess purchase price over the estimated fair value of net assets acquired as of the acquisition date. ASC Topic 350 ASC 350 requires goodwill to be tested for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the Company's business enterprise below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit, which is measured based upon, among other factors, market multiples for comparable companies as well as a discounted cash flow analysis </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> Management has determined that the Company currently has a single reporting unit which is CounterPath Corporation. If the recorded value of the assets, including goodwill, and liabilities (“net book value”) of the reporting unit exceeds its fair value, an impairment loss may be required. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> Goodwill of $6,339,717 (CDN$6,704,947) and $2,083,960 (CDN$2,083,752) was initially recorded in connection with the acquisition of NewHeights Software Corporation on August 2, 2007 and FirstHand Technologies Inc. on February 1, 2008. Translated to U.S. dollars using the period end rate, the goodwill balance at July 31, 2012 was $6,678,798 (CDN$6,704,947) (April 30, 2012 - $6,834,353) and $2,075,289 (CDN$2,083,752) (April 30, 2012 - $2,123,624), respectively. Management will perform its annual impairment test in its fiscal fourth quarter. No impairment charges were recorded for the three months ended July 31, 2012 and 2011. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> Intangible assets include the intangibles purchased in connection with the acquisition of NewHeights Software Corporation on August 2, 2007, and FirstHand Technologies Inc. and BridgePort Networks, Inc. on February 1, 2008. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> The intangible assets of NewHeights are reported at acquisition cost and include amounts initially allocated to acquired technologies of $3,454,839 (CDN$3,678,100) and customer asset of $2,283,908 (CDN$2,431,500). The acquired technologies are amortized based on their estimated useful life of four years and the customer asset is amortized on the basis of Management’s estimate of the future cash flows from this asset over approximately five years, which is Management’s estimate of the useful life of the customer asset. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> The intangible assets of FirstHand are reported at acquisition cost and include amounts initially allocated to acquired technologies of $2,804,700 (CDN$2,804,700) and customer asset of $587,000 (CDN$587,000). The acquired technologies are amortized based on their estimated useful life of four years and the customer asset is amortized on the basis of Management’s estimate of the future cash flows from this asset over approximately five years, which is Management’s estimate of the useful life of the customer asset. </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> The intangible assets of BridgePort are being carried and reported at acquisition cost and include amounts initially allocated to acquired technologies of $476,703 and customer asset of $43,594. The acquired technologies are amortized based on their estimated useful life of four years and the customer asset is amortized on the basis of Management’s estimate of the future cash flows from this asset over approximately five years, which is Management’s estimate of the useful life of the customer asset. </td> </tr> </table>   <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="10%"> </td> <td width="5%"> </td> <td> A summary of the Company’s intangible assets, net, at July 31, 2012 is as follows: </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Accumulated </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Accumulated </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Impairment </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Net Carrying </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Cost </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Amortization </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Charge </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Amount </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Acquired technologies</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   6,306,336 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   4,417,678 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   1,888,658 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> –</td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Customer assets</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2,727,679 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 1,482,512 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 1,216,028 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 29,139 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Intangible assets</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   9,034,015 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   5,900,190 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   3,104,686 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   29,139 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Accumulated </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Accumulated </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Impairment </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Net Carrying </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Cost </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Amortization </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Charge </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Amount </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Acquired technologies</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   6,306,336 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   4,417,678 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   1,888,658 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> –</td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Customer assets</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2,727,679 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 1,482,512 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 1,216,028 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 29,139 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Intangible assets</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   9,034,015 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   5,900,190 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   3,104,686 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   29,139 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

6306336 4417678 1888658 2727679 1482512 1216028 29139 9034015 5900190 3104686 29139 3 6339717 6704947 2083960 2083752 6678798 6704947 6834353 2075289 2083752 2123624 3454839 3678100 2283908 2431500 2804700 2804700 587000 587000 476703 43594

650000 13.5 9 9 0 134493 108642 150632 242469 21025 21030 490750 500000 490750 358211 1.37 3333334 1666667 0.56 0.6 933881 1000000 250000 0.02 833334 0.9 208992 10969 0 206500 206500

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Fair Value </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Fair value of warrant liability, at issuance</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   1,311,141 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Change in fair value of warrant liability for the period</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 715,803 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Fair value of warrant liability at April 30, 2012</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 2,026,944 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Change in fair value of warrant liability for the period</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (727,429 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Warrants exercised during the period</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> (54,639 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">)</td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Fair value of warrant liability at July 31, 2012</td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   1,244,876 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> </td> </tr> </table>

1311141 715803 2026944 -727429 -54639 1244876 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" width="19%"> As at </td> <td align="center" width="4%"> </td> <td align="center" width="19%"> As at the date of issuance </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="19%"> July 31, 2012 </td> <td align="center" width="4%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="19%"> June 14, 2011 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Risk-free interest rate</td> <td align="center" bgcolor="#e6efff" width="19%"> 0.17% </td> <td align="center" bgcolor="#e6efff" width="4%"> </td> <td align="center" bgcolor="#e6efff" width="19%"> 1.60% </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Expected volatility</td> <td align="center" width="19%"> 70% </td> <td align="center" width="4%"> </td> <td align="center" width="19%"> 70% </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Expected term</td> <td align="center" bgcolor="#e6efff" width="19%"> 0.87 years to 0.37 years </td> <td align="center" bgcolor="#e6efff" width="4%"> </td> <td align="center" bgcolor="#e6efff" width="19%"> 1.5 years to 2 years </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Dividend yield</td> <td align="center" width="19%"> 0% </td> <td align="center" width="4%"> </td> <td align="center" width="19%"> 0% </td> </tr> </table> 0.0017 0.016 0.7 0.7 0.87 0.37 1.5 2 0 0

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="9%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);"> As at July 31, 2012 </td> <td align="left" width="1%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Fair Value </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Level 1 </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Level 2 </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Level 3 </td> <td align="left" width="1%"> </td> </tr> <tr valign="top"> <td width="9%"> </td> <td align="left" bgcolor="#e6efff">Derivate Warrant Liability</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="11%">   (1,244,876 </td> <td align="left" bgcolor="#e6efff" width="1%">)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="11%"> - </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="11%">   - </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="11%">   (1,244,876 </td> <td align="left" bgcolor="#e6efff" width="1%">)</td> </tr> <tr valign="top"> <td width="9%"> </td> <td align="left">Forward exchange contracts</td> <td align="left" width="1%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> 57,700 </td> <td align="left" width="1%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> 57,700 </td> <td align="left" width="1%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> - </td> <td align="left" width="1%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> - </td> <td align="left" width="1%"> </td> </tr> <tr valign="top"> <td width="9%"> </td> <td align="left" bgcolor="#e6efff">Total Liabilities</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="11%">   (1,187,176 </td> <td align="left" bgcolor="#e6efff" width="1%">)</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="11%"> 57,700 </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="11%">   - </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="11%">   (1244,876 </td> <td align="left" bgcolor="#e6efff" width="1%">)</td> </tr> </table>

-1244876 0 0 -1244876 57700 57700 0 0 -1187176 57700 0 -1244876

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="9%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);"> As at April 30, 2012 </td> <td align="left" width="1%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Fair Value </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Level 1 </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Level 2 </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Level 3 </td> <td align="left" width="1%"> </td> </tr> <tr valign="top"> <td width="9%"> </td> <td align="left" bgcolor="#e6efff">Derivative Warrant Liability</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="11%">   (2,026,944 </td> <td align="left" bgcolor="#e6efff" width="1%">)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="11%">   - </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="11%">   - </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="11%">   (2,026,944 </td> <td align="left" bgcolor="#e6efff" width="1%">)</td> </tr> <tr valign="top"> <td width="9%"> </td> <td align="left">Forward exchange contracts</td> <td align="left" width="1%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> - </td> <td align="left" width="1%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> - </td> <td align="left" width="1%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> - </td> <td align="left" width="1%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> - </td> <td align="left" width="1%"> </td> </tr> <tr valign="top"> <td width="9%"> </td> <td align="left" bgcolor="#e6efff">Total Liabilities</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="11%">   (2,026,944 </td> <td align="left" bgcolor="#e6efff" width="1%">)</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="11%">   - </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="11%">   - </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="11%">   (2,026,944 </td> <td align="left" bgcolor="#e6efff" width="1%">)</td> </tr> </table>

-2026944 0 0 -2026944 0 0 0 0 -2026944 0 0 -2026944 2000000 57700 1311141 3773946 1000000 320000 136934

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> Note 5 </td> <td align="left" width="90%"> Common Stock </td> </tr> <tr> <td> </td> <td width="90%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> Private Placement </td> </tr> <tr> <td> </td> <td width="90%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> On June 14, 2011, the Company issued an aggregate of 3,145,800 units under a brokered private placement for aggregate gross proceeds of $5,636,170 (CDN$5,505,150) at a price of $1.79 (CDN$1.75) per unit, with each unit consisting of one share of the Company’s common stock and one-half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share of the Company’s common stock at an exercise price of CDN$2.25 per share until June 14, 2013. In connection with the offering, the Company issued an aggregate of 220,206 broker warrants, with each broker warrant entitling the holder thereof to purchase one common share of the Company at an exercise price of CDN$1.75 per share until December 14, 2012. In addition, the Company incurred $605,922 in share issue costs. </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> On June 19, 2012, the Company issued an aggregate of 1,465,000 units under a non–brokered private placement for aggregate gross proceeds of CDN $3,662,500 ($3,580,156) at a price of CDN $2.50 ($2.24) per unit, with each unit consisting of one share of the Company’s common stock and one–half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share of the Company’s common stock at an exercise price of $3.25 per share until June 19, 2014. </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> Stock Options </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> The Company has a stock option plan under which options to purchase common shares of the Company may be granted to employees, directors and consultants. Stock options entitle the holder to purchase common stock at a subscription price determined by the Board of Directors of the Company at the time of the grant. The options generally vest in the amount of 12.5% on the date which is six months from the date of grant and then beginning in the seventh month at 1/42 per month for 42 months, at which time the options are fully vested. </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> The maximum number of shares of common stock authorized by the stockholders and reserved for issuance by the Board of Directors of the Company under the 2010 Stock Option Plan is 6,860,000. </td> </tr> </table>   <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> The Company has elected to use the Black-Scholes option pricing model to determine the fair value of stock options granted. In accordance with ASC 718 for employees, the compensation expense is amortized on a straight-line basis over the requisite service period which approximates the vesting period. Compensation expense for stock options granted to non-employees is amortized over the vesting period or, if none exists, over the service period. </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> Compensation associated with unvested options granted to non-employees is remeasured on each balance sheet date using the Black-Scholes option pricing model. </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> The expected volatility of options granted has been determined using the method described under ASC 718 using the historical stock price. The expected term of options granted to employees in the current fiscal period has been determined utilizing the “simplified” method as prescribed by ASC 718 Share-Based Payment. </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> For non-employees, based on the Company’s history, the expected term of the options approximates the full term of the options. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company has not paid and does not anticipate paying dividends on its common stock; therefore, the expected dividend yield is assumed to be zero. In addition, ASC 718 requires companies to utilize an estimated forfeiture rate when calculating the expense for the period, whereas prior to the adoption of ASC 718 the Company recorded forfeitures based on actual forfeitures and recorded a compensation expense recovery in the period when the awards were forfeited. As a result, based on the Company’s experience, the Company applied an estimated forfeiture rate of 15% for the three month period ended July 31, 2012 and 2011 in determining the expense recorded in the accompanying consolidated statement of operations. </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> The weighted-average fair value of options granted during the three months ended July 31, 2012 was $1.54 (2011 - $nil). The weighted-average assumptions utilized to determine such values are presented in the following table: </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Three Months Ended </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> July 31, 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> July 31, 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Risk-free interest rate</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 0.62% </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%">n/a</td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Expected volatility</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 74.47% </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%">n/a</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Expected term</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 3.7 years </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%">n/a</td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Dividend yield</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 0% </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%">n/a</td> <td align="left" width="2%"> </td> </tr> </table> The following is a summary of the status of the Company’s stock options as of July 31, 2012 and the stock option activity during the three months ended July 31, 2012: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Weighted Average </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Number of </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Exercise Price </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Options </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> per Share </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Outstanding at April 30, 2012</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 3,925,979 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 1.15 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Granted</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 305,000 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 2.90 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Exercised</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> (80,874 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 0.85 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Forfeited/Cancelled</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> (175,875 </td> <td align="left" width="2%">)</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 1.69 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Outstanding at July 31, 2012</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> 3,974,230 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> 1.27 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Exercisable at July 31, 2012</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 2,286,993 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 0.90 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Exercisable at April 30, 2012</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 2,087,742 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 0.85 </td> <td align="left" width="2%"> </td> </tr> </table>   <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> The following table summarizes information regarding stock purchase options outstanding as of July 31, 2012: </td> </tr> </table> <div align="right"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="90%"> <tr valign="top"> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Number of </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Aggregate </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="28%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Number of </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Aggregate </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="center" nowrap="nowrap"> Exercise </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Options </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Intrinsic </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="28%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Options </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Intrinsic </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Price </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Outstanding </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Value </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="28%"> Expiry Date </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Exercisable </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Value </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $0.44 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 387,258 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%">   778,389 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">December 15, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 344,119 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%">   691,679 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom"> $0.47 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 411,389 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 814,550 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%">October 12, 2012 to September 26, 2016</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 411,389 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 814,550 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $0.60 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 425,708 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 787,560 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">December 14, 2014</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 279,088 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 516,313 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom"> $0.62 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 850,000 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 1,555,500 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%">April 17, 2014</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 690,625 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 1,263,844 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $1.70 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 800,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 600,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">December 17, 2014</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 116,667 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 87,500 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom"> $1.90 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 421,875 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 232,031 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%">December 14, 2015</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 165,104 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 90,807 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $2.00 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 6,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 2,700 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">October 1, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 6,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 2,700 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom"> $2.15 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 240,000 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 72,000 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%">September 7, 2016</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 240,000 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 72,000 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $2.27 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 102,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 18,360 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">March 10, 2016</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 34,001 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 6,120 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom"> $2.55 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 25,000 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> – </td> <td align="left" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%">March 8, 2017</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> – </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> – </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $2.90 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> 305,000 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> – </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">July 19, 2017</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> – </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> – </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom">July 31, 2012</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> 3,974,230 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%">   4,861,090 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> 2,286,993 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%">   3,545,513 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> <tr> <td align="center" bgcolor="#e6efff" valign="bottom"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom">April 30, 2012</td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="11%"> 3,925,979 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="11%">   6,751,493 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="11%"> 2,087,742 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="11%">   4,213,032 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> </table> </div> The aggregate intrinsic value in the preceding table represents the total intrinsic value, based on the Company’s closing stock price of $2.45 per share as of July 31, 2012 (April 30, 2012 – $2.87), which would have been received by the option holders had all option holders exercised their options as of that date. The total number of in-the-money options vested and exercisable as of July 31, 2012 was 2,286,993 (April 30, 2012 – 2,087,742). The total intrinsic value of options exercised during the three months ended July 31, 2012 was $129,403 (2011 – $61,665). The grant date fair value of options vested during the three months ended July 31, 2012 was $199,542 (2011 – $112,474). The following table summarizes information regarding the non-vested stock purchase options outstanding as of July 31, 2012. <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="23%"> </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" width="23%"> Weighted Average </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="23%"> Number of Options </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="23%"> Grant Date Fair Value </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Non-vested options at April 30, 2012</td> <td align="right" bgcolor="#e6efff" width="23%"> 1,838,237 </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" width="23%"> $0.82 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Granted</td> <td align="right" width="23%"> 305,000 </td> <td align="center" width="3%"> </td> <td align="center" width="23%"> $1.54 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Vested</td> <td align="right" bgcolor="#e6efff" width="23%"> (280,125) </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" width="23%"> $0.71 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Cancelled/Forfeited</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="23%"> (175,875) </td> <td align="center" width="3%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="23%"> $0.90 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Non-vested options at July 31, 2012</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="23%"> 1,687,237 </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="23%"> $0.96 </td> </tr> </table> As of July 31, 2012 there was, $1,411,923 of total unrecognized compensation cost related to unvested share-based compensation awards. This unrecognized compensation cost is expected to be recognized over a weighted average period of 3.14 years.   <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> Employee and non-employee stock-based compensation amounts classified in the Company’s consolidated statements of operations for the three months ended July 31, 2012 and 2011 are as follows: </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap"> Three Months Ended </td> <td align="center" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> July 31, </td> <td align="center" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Cost of sales</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   8,839 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   9,044 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Sales and marketing</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 53,935 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 8,966 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Research and development</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 10,716 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 10,050 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">General and administrative</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 55,943 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 30,878 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Total stock-based compensation</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   129,433 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   58,938 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table> Warrants During the three months ended July 31, 2010, the Company entered into a warrant agreement with a customer whereby the Company issued 1,000,000 stock purchase warrants as part of a contract that the Company entered into with the customer. The fair value of 320,000 stock purchase warrants that was charged to revenue during the three months ended July 31, 2011 was $136,934. These warrants expired unexercised on July 30, 2012. On May 17, 2012, and July 25, 2012, holder of warrants issued under a brokered private placement, exercised 50,000 warrants and 7,000 warrants respectively, at the original exercise price of $2.25 per common share. The following table summarizes information regarding the warrants outstanding as of July 31, 2012: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="14%"> Number of </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="14%"> Weighted Average </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="32%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="14%"> Warrants </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="14%"> Exercise Price </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="32%"> Expiry Dates </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Warrants at April 30, 2012</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> 2,793,105 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> $1.94 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="center" bgcolor="#e6efff" width="32%">July 30, 2012 to June 14, 2013</td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Granted</td> <td align="left" width="1%"> </td> <td align="right" width="14%"> 732,500 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="14%"> $3.25 </td> <td align="left" width="2%"> </td> <td align="center" width="32%">June 19, 2014</td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Exercised</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> (57,000 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> $2.25 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="center" bgcolor="#e6efff" width="32%">June 14, 2013</td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Expired</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="14%"> (1,000,000 </td> <td align="left" width="2%">)</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="14%"> $1.50 </td> <td align="left" width="2%"> </td> <td align="center" width="32%">July 30, 2012</td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Warrants at July 31, 2012</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="14%"> 2,468,605 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="14%"> $2.50 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="center" bgcolor="#e6efff" width="32%">December 14, 2012 to June 19, 2014</td> </tr> </table> Employee Stock Purchase Plan Under the terms of the Employee Stock Purchase Plan (the “ESPP”), all regular salaried (non-probationary) employees may purchase up to 6% of their base salary in common shares of the Company at market price. The Company matches 50% of the shares purchased by issuing or purchasing in the market up to 3% of the respective employee’s base salary in shares. A total of 700,000 shares have been reserved for issuance under the ESPP. As of July 31, 2012, a total of 556,401 (April 30, 2012 - 556,401) shares were available for issuance under the ESPP. During the three months ended July 31, 2012, nil shares (April 30, 2012 - 55,571) were sold or issued to employees under the ESPP.   <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> Deferred Share Unit Plan </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> Under the terms of the Deferred Share Unit Plan (the “DSUP”), each deferred share unit is equivalent to one share of common stock. The maximum number of shares of common stock that may be reserved for issuance to any one participant pursuant to deferred share units granted under the DSUP and any share compensation arrangement is 5% of the number of shares of common stock of the Company outstanding at the time of reservation and, as applicable, any grants of deferred share units to any one participant may not exceed a value of $100,000 per annum on the date of grant. A deferred share unit (DSU) granted to a participant who is a director of the board of the Company shall vest immediately on the award date. A deferred share unit granted to a participant other than a director will generally vest as to one-third (1/3) of the number of deferred share units granted on the first, second and third anniversaries of the award date. Fair value of the DSU’s, which is based on the closing price of the Company’s common stock on the date of grant, is recorded as compensation expense over the vesting period. </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> A total of 2,000,000 shares have been reserved for issuance under the DSUP. During the three months ended July 31, 2012, 133,443 deferred share units were issued under the DSUP, of which 59,878 were granted to officers or employees and 73,565 were granted to non-employee directors. As of July 31, 2012, a total of 278,493 shares were available for issuance under the DSUP. </td> </tr> <tr> <td> </td> <td width="90%">   </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> The following table summarizes the Company’s outstanding deferred share unit awards as of July 31, 2012, and changes during the period then ended: </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="20%"> </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" width="20%"> Weighted Average </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="20%"> </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" width="20%"> Grant Date Fair </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> Number of DSU’s </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> Value Per Unit </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">DSU’s outstanding at April 30, 2012</td> <td align="right" bgcolor="#e6efff" width="20%"> 1,588,064 </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" width="20%"> $0.83 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Granted</td> <td align="right" width="20%"> 133,443 </td> <td align="center" width="3%"> </td> <td align="center" width="20%"> $2.90 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Conversions</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> – </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> – </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">DSU’s outstanding at July 31, 2012</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="20%"> 1,721,507 </td> <td align="center" width="3%"> </td> <td align="center" style="border-bottom: 3px double rgb(0, 0, 0);" width="20%"> $1.01 </td> </tr> </table> The following table summarizes information regarding the non-vested deferred share units outstanding as of July 31, 2012: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="20%"> </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" width="20%"> Weighted Average </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="20%"> </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" width="20%"> Grant Date Fair </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> Number of DSU’s </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> Value Per Unit </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Non-vested DSU’s at April 30, 2012</td> <td align="right" bgcolor="#e6efff" width="20%"> 334,337 </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" width="20%"> $1.33 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Granted</td> <td align="right" width="20%"> 133,443 </td> <td align="center" width="3%"> </td> <td align="center" width="20%"> $2.90 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Vested</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> (165,007) </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> $1.52 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Non-vested DSU’s at July 31, 2012</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="20%"> 302,773 </td> <td align="center" width="3%"> </td> <td align="center" style="border-bottom: 3px double rgb(0, 0, 0);" width="20%"> $1.63 </td> </tr> </table> As of July 31, 2012 there was $428,461 (2011 – $496,636) of total unrecognized compensation cost related to unvested deferred share units awards. This unrecognized compensation cost is expected to be recognized over a weighted average period of 2.17 years (2011 – 2.47 years).   <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="90%"> Employee and non-employee deferred share unit based compensation amounts classified in the Company’s consolidated statements of operations for the three months ended July 31, 2012 and 2011 are as follows: </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap"> Three Months Ended </td> <td align="center" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> July 31, </td> <td align="center" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Sales and marketing</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   4,167 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   – </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Research and development</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 272 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> – </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">General and administrative</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 262,898 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 185,323 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Total deferred share unit-based compensation</td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   267,337 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   185,323 </td> <td align="left" width="2%"> </td> </tr> </table>

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Three Months Ended </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> July 31, 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> July 31, 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Risk-free interest rate</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 0.62% </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%">n/a</td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Expected volatility</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 74.47% </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%">n/a</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Expected term</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 3.7 years </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%">n/a</td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Dividend yield</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 0% </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%">n/a</td> <td align="left" width="2%"> </td> </tr> </table>

0.0062 0.7447 3.7 0

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Weighted Average </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Number of </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Exercise Price </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Options </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> per Share </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Outstanding at April 30, 2012</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 3,925,979 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 1.15 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Granted</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 305,000 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 2.90 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Exercised</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> (80,874 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 0.85 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Forfeited/Cancelled</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> (175,875 </td> <td align="left" width="2%">)</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 1.69 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Outstanding at July 31, 2012</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> 3,974,230 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> 1.27 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Exercisable at July 31, 2012</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 2,286,993 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 0.90 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Exercisable at April 30, 2012</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 2,087,742 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 0.85 </td> <td align="left" width="2%"> </td> </tr> </table>

3925979 1.15 305000 2.9 -80874 0.85 -175875 1.69 3974230 1.27 2286993 0.9 2087742 0.85

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="90%"> <tr valign="top"> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Number of </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Aggregate </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="28%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Number of </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Aggregate </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="center" nowrap="nowrap"> Exercise </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Options </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Intrinsic </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="28%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Options </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="11%"> Intrinsic </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Price </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Outstanding </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Value </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="28%"> Expiry Date </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Exercisable </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="11%"> Value </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $0.44 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 387,258 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%">   778,389 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">December 15, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 344,119 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%">   691,679 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom"> $0.47 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 411,389 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 814,550 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%">October 12, 2012 to September 26, 2016</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 411,389 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 814,550 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $0.60 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 425,708 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 787,560 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">December 14, 2014</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 279,088 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 516,313 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom"> $0.62 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 850,000 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 1,555,500 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%">April 17, 2014</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 690,625 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 1,263,844 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $1.70 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 800,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 600,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">December 17, 2014</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 116,667 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 87,500 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom"> $1.90 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 421,875 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 232,031 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%">December 14, 2015</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 165,104 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 90,807 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $2.00 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 6,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 2,700 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">October 1, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 6,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 2,700 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom"> $2.15 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 240,000 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 72,000 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%">September 7, 2016</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 240,000 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 72,000 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $2.27 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 102,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 18,360 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">March 10, 2016</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 34,001 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> 6,120 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom"> $2.55 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> 25,000 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> – </td> <td align="left" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%">March 8, 2017</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> – </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="11%"> – </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff" valign="bottom"> $2.90 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> 305,000 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> – </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%">July 19, 2017</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> – </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> – </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom">July 31, 2012</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> 3,974,230 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%">   4,861,090 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%"> 2,286,993 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="11%">   3,545,513 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> <tr> <td align="center" bgcolor="#e6efff" valign="bottom"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="28%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="11%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="center" valign="bottom">April 30, 2012</td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="11%"> 3,925,979 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="11%">   6,751,493 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="right" valign="bottom" width="28%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="11%"> 2,087,742 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="11%">   4,213,032 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> </table>

0.44 387258 778389 344119 691679 0.47 411389 814550 411389 814550 0.6 425708 787560 279088 516313 0.62 850000 1555500 690625 1263844 1.7 800000 600000 116667 87500 1.9 421875 232031 165104 90807 2 6000 2700 6000 2700 2.15 240000 72000 240000 72000 2.27 102000 18360 34001 6120 2.55 25000 0 0 0 2.9 305000 0 0 0 3974230 4861090 2286993 3545513 3925979 6751493 2087742 4213032

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="23%"> </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" width="23%"> Weighted Average </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="23%"> Number of Options </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="23%"> Grant Date Fair Value </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Non-vested options at April 30, 2012</td> <td align="right" bgcolor="#e6efff" width="23%"> 1,838,237 </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" width="23%"> $0.82 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Granted</td> <td align="right" width="23%"> 305,000 </td> <td align="center" width="3%"> </td> <td align="center" width="23%"> $1.54 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Vested</td> <td align="right" bgcolor="#e6efff" width="23%"> (280,125) </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" width="23%"> $0.71 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Cancelled/Forfeited</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="23%"> (175,875) </td> <td align="center" width="3%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="23%"> $0.90 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Non-vested options at July 31, 2012</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="23%"> 1,687,237 </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="23%"> $0.96 </td> </tr> </table>

1838237 0.82 305000 1.54 -280125 0.71 -175875 0.9 1687237 0.96

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap"> Three Months Ended </td> <td align="center" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> July 31, </td> <td align="center" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Cost of sales</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   8,839 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   9,044 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Sales and marketing</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 53,935 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 8,966 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Research and development</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 10,716 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 10,050 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">General and administrative</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 55,943 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 30,878 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Total stock-based compensation</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   129,433 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   58,938 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

8839 9044 53935 8966 10716 10050 55943 30878 129433 58938 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="14%"> Number of </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="14%"> Weighted Average </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="32%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="14%"> Warrants </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="14%"> Exercise Price </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="32%"> Expiry Dates </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Warrants at April 30, 2012</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> 2,793,105 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> $1.94 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="center" bgcolor="#e6efff" width="32%">July 30, 2012 to June 14, 2013</td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Granted</td> <td align="left" width="1%"> </td> <td align="right" width="14%"> 732,500 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="14%"> $3.25 </td> <td align="left" width="2%"> </td> <td align="center" width="32%">June 19, 2014</td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Exercised</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> (57,000 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> $2.25 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="center" bgcolor="#e6efff" width="32%">June 14, 2013</td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Expired</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="14%"> (1,000,000 </td> <td align="left" width="2%">)</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="14%"> $1.50 </td> <td align="left" width="2%"> </td> <td align="center" width="32%">July 30, 2012</td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Warrants at July 31, 2012</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="14%"> 2,468,605 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="14%"> $2.50 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="center" bgcolor="#e6efff" width="32%">December 14, 2012 to June 19, 2014</td> </tr> </table> 2793105 1.94 732500 3.25 -57000 2.25 -1000000 1.5 2468605 2.5 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="20%"> </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" width="20%"> Weighted Average </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="20%"> </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" width="20%"> Grant Date Fair </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> Number of DSU’s </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> Value Per Unit </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">DSU’s outstanding at April 30, 2012</td> <td align="right" bgcolor="#e6efff" width="20%"> 1,588,064 </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" width="20%"> $0.83 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Granted</td> <td align="right" width="20%"> 133,443 </td> <td align="center" width="3%"> </td> <td align="center" width="20%"> $2.90 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Conversions</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> – </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> – </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">DSU’s outstanding at July 31, 2012</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="20%"> 1,721,507 </td> <td align="center" width="3%"> </td> <td align="center" style="border-bottom: 3px double rgb(0, 0, 0);" width="20%"> $1.01 </td> </tr> </table> 1588064 0.83 133443 2.9 0 0 1721507 1.01 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="20%"> </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" width="20%"> Weighted Average </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="20%"> </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" width="20%"> Grant Date Fair </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> Number of DSU’s </td> <td align="center" nowrap="nowrap" width="3%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> Value Per Unit </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Non-vested DSU’s at April 30, 2012</td> <td align="right" bgcolor="#e6efff" width="20%"> 334,337 </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" width="20%"> $1.33 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Granted</td> <td align="right" width="20%"> 133,443 </td> <td align="center" width="3%"> </td> <td align="center" width="20%"> $2.90 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Vested</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> (165,007) </td> <td align="center" bgcolor="#e6efff" width="3%"> </td> <td align="center" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="20%"> $1.52 </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Non-vested DSU’s at July 31, 2012</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="20%"> 302,773 </td> <td align="center" width="3%"> </td> <td align="center" style="border-bottom: 3px double rgb(0, 0, 0);" width="20%"> $1.63 </td> </tr> </table> 334337 1.33 133443 2.9 -165007 1.52 302773 1.63 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap"> Three Months Ended </td> <td align="center" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> July 31, </td> <td align="center" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Sales and marketing</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   4,167 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   – </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Research and development</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 272 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> – </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">General and administrative</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 262,898 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 185,323 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Total deferred share unit-based compensation</td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   267,337 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   185,323 </td> <td align="left" width="2%"> </td> </tr> </table> 4167 0 272 0 262898 185323 267337 185323 3145800 5636170 5505150 1.79 1.75 2.25 220206 1.75 605922 1465000 3662500 3580156 2.5 2.24 3.25 0.125 42 6860000 0.15 1.54 0 2.45 2.87 2286993 2087742 129403 61665 199542 112474 1411923 3.14 1000000 320000 136934 50000 7000 2.25 0.06 0.5 0.03 700000 556401 556401 0 55571 0.05 100000 2000000 133443 59878 73565 278493 428461 496636 2.17 2.47

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap"> Three Months Ended </td> <td align="center" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> July 31, </td> <td align="center" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">North America</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   2,920,517 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   1,603,753 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Europe</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 691,113 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 847,033 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Asia and Africa</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 556,687 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 219,198 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Latin America</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 219,451 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 88,750 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   4,387,768 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   2,758,734 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

2920517 1603753 691113 847033 556687 219198 219451 88750 4387768 2758734 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> As at    </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="16%"> July 31, 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="16%"> April 30, 2012 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Canada</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="16%">   8,926,627 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="16%"> 9,830,664 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">United States</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="16%"> 19,258 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="16%"> 18,891 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="16%">   8,945,885 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="16%"> 9,849,555 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table> 8926627 9830664 19258 18891 8945885 9849555

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap"> Three Months Ended </td> <td align="right" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> July 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">Customer A</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 15% </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> -% </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">Customer B</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 10% </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 15% </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> 25% </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> 15% </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

0.15 0 0.1 0.15 0.25 0.15 1935087 951087 985430 652666 179382 4995 130412 102566 123146 379940 35099 1242 33398 25083 355881 15342 77258 20974 55731 17175 20301 22270 17535 72974 144950 32813 20568 14115 14160 0 11370 0 10701 19192 770828 32703 720471 79100

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Office Leases </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Office Leases – </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> –Unrelated </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Sub Lease </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Total Office </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Settlement </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Related Party </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Party </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Income </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Leases </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> Agreement </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">2013</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   63,074 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   456,014 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   (14,953 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   504,135 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">   49,307 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left">2014</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 84,099 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 496,005 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 580,104 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> - </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff">2015</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 206,669 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> 206,669 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   147,173 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   1,158,688 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   (14,953 </td> <td align="left" width="2%">)</td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   1,290,908 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">   49,307 </td> <td align="left" width="2%"> </td> </tr> </table> 63074 456014 -14953 504135 49307 84099 496005 0 580104 0 0 206669 0 206669 0 147173 1158688 -14953 1290908 49307 9890 9890 8666 7476 49805 21579 21182 7008 7036 493070 495000 45 11000 6700

5000 0.125 42