Share-Based Compensation

3 Months Ended

Oct. 31, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

8.Share-Based Compensation

The following table summarizes share-based compensation expense related to stock options and restricted stock awards for the three months ended October 31, 2011 and 2010:

		For the three months ended October 31,
		2011		2010
Share-based compensation for employees and directors:
Selling, general and administrative	$	322,000	$	246,000
Research and development		63,000		37,000
		385,000		283,000

Share-based compensation for consultants:
Selling, general and administrative		(8,000)		33,000
Research and development		0		(8,000)
		(8,000)		25,000
Total share-based compensation expense	$	377,000	$	308,000

As of October 31, 2011, there was $1,760,000 of unrecognized non-cash compensation cost related to unvested options, which will be recognized over a weighted average period of 1.78 years. Also, as of October 31, 2011, there was $19,000 of unrecognized non-cash compensation cost related to unvested restricted shares, which will be recognized over a weighted average period 0.22 years.

We estimate the fair value of each option grant on the grant date using the Black-Scholes option valuation model with the following weighted-average assumptions:

	For the three months ended October 31,
	2011	2010
Volatility	81.55% - 81.56%	82.18% - 89.91%
Risk-free interest rate	0.97 % - 1.32%	0.48 % - 2.00%
Dividend yield	0.0%	0.0%
Expected life	5.05 years	3.24 years