Share-Based Compensation

9 Months Ended

Apr. 30, 2013

Share-based Compensation [Abstract]

Share-Based Compensation

12.Share-Based Compensation

The following table summarizes share-based compensation expense related to employee and director stock options, consultant stock options, and restricted stock awards for the three and nine months ended April 30, 2013 and 2012:

	For the three months ended April 30,
	2013		2012
Share-based compensation for employees and directors:
Selling, general and administrative	$	132,000	$	155,000
Research and development		12,000		63,000
		144,000		218,000
Share-based compensation for consultants:
Selling, general and administrative		0		0
Research and development		9,000		0
		9,000		0
Total share-based compensation expense	$	153,000	$	218,000
	For the nine months ended April 30,
	2013		2012
Share-based compensation for employees and directors:
Selling, general and administrative	$	457,000	$	658,000
Research and development		115,000		190,000
		572,000		848,000
Share-based compensation for consultants:
Selling, general and administrative		0		(7,000)
Research and development		11,000		0
		11,000		(7,000)
Total share-based compensation expense	$	583,000	$	841,000

As of April 30, 2013, there was $552,000 of unrecognized non-cash compensation cost related to unvested options, which will be recognized over a weighted average period of 1.39 years. Also, as of April 30, 2013, there was $5,000 of unrecognized non-cash compensation cost related to unvested restricted shares, which will be recognized over a weighted average period of 0.25 years.

During the nine months ended April 30, 2013, we granted 273,000 stock options to officers, employees and a consultant, and 109,583 options were forfeited or cancelled. 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,
	2013	2012
Volatility	134.80%	81.59%
Risk-free interest rate	0.85%	1.17%
Dividend yield	0.0%	0.0%
Expected life	5.06 years	4.82 years