Share-Based Compensation

3 Months Ended

Oct. 31, 2012

Share-based Compensation [Abstract]

Share-Based Compensation

11.Share-Based Compensation

The following table summarizes share-based compensation expense related to employee and directorstock options, consultant stock options, and restricted stock awards for the three months ended October 31, 2012 and 2011:

	For the three months ended October 31,
	2012		2011
Share-based compensation for employees and directors:
Selling, general and administrative	$	141,000	$	322,000
Research and development		46,000		63,000
		187,000		385,000
Share-based compensation for consultants:
Selling, general and administrative		0		(8,000)
Research and development		1,000		0
		1,000		(8,000)
Total share-based compensation expense	$	188,000	$	377,000

As of October 31, 2012, there was $862,000 of unrecognized non-cash compensation cost related to unvested options, which will be recognized over a weighted average period of 1.14 years. Also, as of October 31, 2012, there was $14,000of unrecognized non-cash compensation cost related to unvested restricted shares, which will be recognized over a weighted average period of 0.75 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,
	2012	2011
Volatility	0.00%	81.55% - 81.56%
Risk-free interest rate	0.00%	0.97% - 1.32%
Dividend yield	0	0.0%
Expected life	0	5.05 years

No options were granted during the three months ended October 31, 2012.