Share-Based Compensation

6 Months Ended

Jan. 31, 2012

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 and six months ended January 31, 2012 and 2011:

		For the three months ended January 31,
		2012			2011
Share-based compensation for employees and directors:
Selling, general and administrative	$	181,000		$	257,000
Research and development		64,000			38,000
		245,000			295,000
Share-based compensation for consultants:
Selling, general and administrative		1,000			(3,000	)
Research and development		0			5,000
		1,000			2,000
Total share-based compensation expense	$	246,000		$	297,000
		For the six months ended January 31,
		2012			2011
Share-based compensation for employees and directors:
Selling, general and administrative	$	503,000		$	503,000
Research and development		127,000			75,000
		630,000			578,000
Share-based compensation for consultants:
Selling, general and administrative		(7,000	)		30,000
Research and development		0			(3,000	)
		(7,000	)		27,000
Total share-based compensation expense	$	623,000		$	605,000

As of January 31, 2012, there was $1,538,000 of unrecognized non-cash compensation cost related to unvested options, which will be recognized over a weighted average period of 1.54 years. Also, as of January 31, 2012, there was no unrecognized non-cash compensation cost related to unvested restricted shares.

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 six months ended January 31,
	2012		2011
Volatility	79.94% - 81.56%		81.15% - 82.18%
Risk-free interest rate	0.28% - 1.32%		1.80 % - 2.14%
Dividend yield	0.0	%	0.0	%
Expected life	4.84 years		4.93 years