Equity

9 Months Ended

Apr. 30, 2017

Equity [Abstract]

Equity

Note 8 — Equity

Issuances of Class B Common Stock: 

Class B common stock activity for the nine months ended April 30, 2017 was as follows:

1.	The Company issued 180,000 restricted shares to Jonas as compensation.
2.	The Company issued 108,000 restricted shares to other officers and 56,000 restricted shares to other employees as compensation.
3.	The Company issued 24,000 shares to directors as compensation.
4.	The Company issued 1,250 restricted shares to a consultant as compensation.
5.	The Company issued 1,440 shares upon the exercise of stock options and received proceeds of approximately $8,000.
6.	The Company issued 147,682 shares to various Lenders upon the exercise of warrants and reduced the Loan Amount by $5,125,000.

In the period from May 1, 2017 to the filing of this report, the Company issued 1,865 shares for the exercise of stock options and received proceeds of approximately $11,000.

See Note 9 - Stock-Based Compensation below for a further discussion.

Issuances of Warrants: 

As discussed in Note 7, the Company issued warrants to purchase 252,161 shares of the Company’s Class B common stock as part of the Loan Agreement. The Company issued 147,682 shares to various Lenders for the exercise of certain of these warrants. At April 30, 2017, 104,479 warrants are still outstanding.

Treasury Stock for Payroll Tax Withholding:

Treasury stock consists of shares of Class B common stock that were tendered by employees of ours to satisfy the employees’ tax withholding obligations in connection with the lapsing of restrictions on awards of restricted stock. The fair market value of the shares tendered was based on the trading day immediately prior to the vesting date and the proceeds utilized to pay the withholding taxes due upon such vesting event.

At both April 30, 2017 and July 31, 2016, there were 39,693 shares of treasury stock totaling approximately $428,000.