Share-Based Compensation

3 Months Ended

Apr. 30, 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 nine months ended April 30, 2012 and 2011:

	For the three months ended
	April 30,
	2012		2011
Share-based compensation for employees and directors:
Selling, general and administrative	$	155,000	$	184,000
Research and development		63,000		17,000
		218,000		201,000
Share-based compensation for consultants:
Selling, general and administrative		0		6,000
Research and development		0		(5,000)
		0		1,000
Total share-based compensation expense	$	218,000	$	202,000
	For the nine months ended
	April 30,
	2012		2011
Share-based compensation for employees and directors:
Selling, general and administrative	$	658,000	$	687,000
Research and development		190,000		92,000
		848,000		779,000
Share-based compensation for consultants:
Selling, general and administrative		(7,000)		36,000
Research and development		0		(8,000)
		(7,000)		28,000
Total share-based compensation expense	$	841,000	$	807,000

As of April 30, 2012, there was $1,316,000 of unrecognized non-cash compensation cost related to unvested options, which will be recognized over a weighted average period of 1.3 years. Also, as of April 30, 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 nine months ended April 30,
	2012	2011
Volatility	81.59%	82.82%
Risk-free interest rate	1.17%	1.62%
Dividend yield	0.0%	0.0%
Expected life	4.82 years	4.66 years