Sale of Intangible Trade Name. We sold our Unify trade name for
Gain/(loss) from Change in Fair Value of Common Stock Warrant Liability. The change in fair value of common stock warrant liability for the three months ended
July 31, 2013resulted in a loss of $0.1 million. The change in fair value of common stock warrant liability for the three months ended July 31, 2012resulted in a gain of $0.5 million. The changes in fair value of the common stock warrant liability are primarily the result of changes in the price of our stock during the quarter. During the three months ended July 31, 2013, our stock price increased resulting in an increase in the fair value of the common stock warrant liability and a corresponding loss from the change in fair value.
Interest Expense. Interest expense is primarily the result of interest on outstanding debt. Interest expense for the three months ended
Provision for Income Taxes. Our tax expense was
$64,000and $52,000for the three months ended July 31, 2013and 2012, respectively. For both periods, our tax expense was primarily related to our state and foreign income taxes, as well as deferred income tax expense arising from an indefinite-lived asset.
Liquidity and Capital Resources
July 31, 2013, the Company had cash of $5.0 millioncompared to $5.5 millionat April 30, 2013. Cash declined as a result of debt payments of $1.7 million, offset by collection activities during the quarter. The Company had net accounts receivable of $8.1 millionas of July 31, 2013compared to $10.6 millionas of April 30, 2013. The decline in accounts receivable is primarily the result of collection activities as well as lower revenue during the quarter. In July 2013, the Company entered into an amendment to its Revolving Credit and Term Loan Agreement with Wells Fargo Capital Finance. Under the terms of the amendment, the Company is entitled to borrow up to $18.2 million. The total amount that can be borrowed under the credit agreement is based on a multiplier factor of the trailing twelve months of maintenance and Software-As-A-Service revenue. As of July 31, 2013, the Company was eligible to borrow an additional $1.8 million. The Wells Fargo Credit Agreement consists of two term notes and a revolving credit note agreement. Term Note A is for $12.2 millionwith principal payments of $306,000quarterly plus an additional annual payment based on the Company's free cash flow for the year with any remaining amount due at maturity, June 30, 2015. To the extent the company makes annual principal payments based on free cash flow, the quarterly principal payments will be reduced. The Company incurs interest at the prevailing LIBOR rate plus 4.5-5.0% per annum with a minimum rate of 6.50% (6.50% at July 31, 2013). 19 --------------------------------------------------------------------------------