Share-Based Compensation

6 Months Ended

Jan. 31, 2015

Share-based Compensation [Abstract]

Share-Based Compensation

12.Share-Based Compensation

On October 24, 2014, we appointed Tom Y. Lee, CPA, to the Board of Directors, or Board. In accordance with the Company’s non-employee director compensation program, the Board granted Mr. Lee restricted stock units for 200,000 shares of the Company’s Common Stock (“RSUs”). The agreement for the RSUs is the same as the RSU agreement form entered into with other non-employee Company directors. The RSUs vest as follows: fifty percent (50%) of the shares of Common Stock vest on the earlier of (i) the date of the Company’s Annual Meeting of Stockholders in 2016 or January 15, 2016 and (ii) the remaining fifty percent (50%) of the shares of Common Stock vest on the earlier of the date of the annual meeting in 2017 or January 15, 2017. None of the RSUs granted to Mr. Lee were granted pursuant to any compensatory, bonus, or similar plan maintained or otherwise sponsored by the Company.

During the three and six months ended January 31, 2015, we issued 332,500 and 640,000 shares of common stock, respectively, to employees, directors and officers for restricted stock units that vested, based on service and performance conditions.  Of the 4,410,000 RSUs outstanding we currently expect 3,650,000 to vest.  As of January 31, 2015, there was $3,339,000 of unrecognized non-cash compensation cost related to RSUs we expect to vest, which will be recognized over a weighted average period of 1.10 years. 

As of January 31, 2015, there was $112,000 of unrecognized non-cash compensation cost related to unvested stock options, which will be recognized over a weighted average period of 1.87 years.No options were granted during the six months ended January 31, 2015.

For the three months ended January 31, 2015 and 2014, share-based compensation expense for outstanding RSUs and stock options was $482,000 and $1,332,000, respectively.  For the six months ended January 31, 2015 and 2014, share-based compensation expense was $985,000 and $1,421,000, respectively.