STOCK OPTION PLANS (Tables)

12 Months Ended

Aug. 31, 2012

STOCK OPTION PLANS [Abstract]

Black-Scholes option-pricing model assumptions

Stock-based compensation expense was based on the Black-Scholes option-pricing model assuming the following:

			Expected
	Risk-free		life of stock	Annual
Period*	interest rate		option	volatility
September 8, 2005 (inception) to August 31, 2006**		5%	10 years		100%
Year ended August 31, 2007		4 to 5%	8 years		100%
Year ended August 31, 2008		2 to 3.75%	8 years		109 to 128%
Year ended August 31, 2009		1.5 to 3.2%	7 years		170 to 240%
Year ended August 31, 2010		2.1 to 3.1%	6 to 7 years		55 to 245%
Year ended August 31, 2011		1.6 to 2.4%	6 years		88 to 116%
Year ended August 31, 2012		0.68 to 1.2%	5 to 6 years		121 to 125%

*

Dividend rate is 0% for all periods presented.

**

Stock-based compensation expense was recorded on the consolidated statements of operations commencing on the effective date of ASC 718, September 1, 2006. Prior to September 1, 2006, stock based compensation was reflected only in the footnotes to the consolidated statements of operations, with no effect on the consolidated statements of operations, per the guidelines of APB Opinion No. 25. Consultant stock-based compensation expense has been recorded on the consolidated statements of operations since inception.

Summary of the activity in stock option plan

A summary of the activity in the 2010 Equity Incentive Plan, the 2006 Equity Compensation Plan, as amended and the Company's other stock option plans, is as follows:

	Option shares			Weighted-average exercise price		Exercisable		Weighted-average fair value of options granted
Outstanding at September 8, 2005		0		$	0		0	$	0
Granted		580		$	2.64		0	$	2.47
Exercised		0		$	0		0	$	0
Canceled		0		$	0		0	$	0
Outstanding at August 31, 2006		580		$	2.64		4	$	2.47
Granted		107		$	2.56		0	$	2.31
Exercised		(3	)	$	2.57		0	$	2.40
Canceled		0		$	0		0	$	0
Outstanding at August 31, 2007		684		$	2.63		273	$	2.45
Granted		223		$	2.27		0	$	2.21
Exercised		0		$	0		0	$	0
Canceled		0		$	0		0	$	0
Outstanding at August 31, 2008		907		$	2.54		601	$	2.39
Granted		82		$	1.13		0	$	1.04
Exercised		0		$	0		0	$	0
Canceled		0		$	0		0	$	0
Outstanding at August 31, 2009		989		$	2.42		826	$	2.40
Granted		303		$	2.29		161	$	1.24
Assumed in the 2009 Merger		161		$	114.12		158	$	2.63
Exercised		(38	)	$	1.69		0	$	1.49
Canceled		(24	)	$	142.42		0	$	2.00
Outstanding at August 31, 2010		1391		$	14.25		1089	$	1.87
Granted		2232		$	3.39		835	$	2.54
Exercised		(39	)	$	2.44		0	$	2.02
Canceled		(3	)	$	1,088.33		0	$	0.00
Outstanding at August 31, 2011		3581		$	6.64		1881	$	2.30
Granted		2722		$	5.38		1279	$	4.62
Exercised		(160	)	$	2.28		0	$	1.72
Canceled		(18	)	$	119.27		0	$	0.02
Outstanding at August 31, 2012		6125		$	5.87		2995	$	3.37

Options outstanding under all of the entity's stock option plans

There were 3,692 options available for grant as of August 31, 2011 under the 2010 Equity Incentive Plan, as amended (the "Plan"), which was approved by the Company's board of directors as of February 2, 2010 and approved by its stockholders on March 9, 2010. On April 7, 2011, the Company's stockholders passed amendments to the Plan which allow for an increase of the grant pool based upon 5% of the Company's common stock outstanding as of April 7, 2011, August 31, 2011 and August 31, 2012 up to an aggregate maximum increase of 6,000 shares.  The April 7, 2011, August 31, 2011 and August 31, 2012 replenishments added 1,630, 1,778 and 2,528 shares, respectively, available for grant under the Plan.  The amendments also allow for 50% accelerated vesting of unvested stock options upon a change of control as defined in the Plan.  In September 2011, the Company's board of directors approved an amended and restated form of award agreement under the Plan, which will be used for awards granted on or after September 22, 2011.  The amended and restated award agreement, subject to the terms of any applicable employment agreement, extends the termination date of the awards granted under the Plan that are vested as of such termination date due to (a) an employee's or a non-employee director's retirement at age 62 or older which employee or non-employee director has at least five (5) years of continuous service with us prior to such retirement, (b) the termination of a non-employee director's board membership for reasons other than for cause or retirement and (c) an employee's or a non-employee director's death (during his or her continuous service with us or within 90 days' of such continuous service with us) or permanent disability, to eighteen (18) months from the date of termination of continuous service with the Company.  No further grants will be made under any previous or assumed stock option plans.  As of August 31, 2012, the options outstanding under all of the Company's stock option plans consisted of the following (in thousands, except per share data):

		Options outstanding						Options vested and exercisable
Range of exercise prices		Number of optionsoutstanding andexpected to vest(#)		Weighted-averageremainingcontractual life(yrs.)		Weighted-averageexerciseprice ($)		Number ofoptionsexercisable (#)		Weighted-averageexercise price($)
$	0 to $1.00		10		6.63		0.85		4		0.85
$	1.01 to $2.00		80		6.79		1.77		73		1.75
$	2.01 to $3.00		1,430		6.15		2.65		1,090		2.59
$	3.01 to $4.00		1,764		8.23		3.50		1,088		3.51
$	4.01 to $5.00		102		7.42		4.71		86		4.71
$	5.01 to $6.00		2,347		9.13		5.17		572		5.13
$	6.01 to $7.00		278		9.50		6.48		29		6.48
$	7.01 to $8.00		70		9.46		7.75		9		7.75
$	8.01 to $964.24		44		3.05		249.34		44		249.34
			6,125		8.09		5.87		2,995		7.10