Equity

6 Months Ended

Jan. 31, 2020

Equity [Abstract]

EQUITY

NOTE 13 — EQUITY

On November 15, 2018, Howard Jonas entered into an agreement to purchase a convertible note from the Company for $15.0 million that was convertible into shares of Class B common stock at $8.47 per share. The term of the note was three years with interest on the principal amount at a rate of 6% per annum, compounded quarterly.

In August 2019, the note including interest of approximately $667,000 was converted into 1,849,749 shares of Class B common stock.

Pursuant to the Company's 2018 Equity Incentive Plan, each of our three non-employee directors of the Company was granted 4,203 restricted shares of our Class B common stock in January 2020 which fully vested on the date of the grant. The fair value of the awards on the date of the grant was approximately $208,000 which was included in selling, general and administrative expense.

Stock Options 

A summary of stock option activity for the Company is as follows:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at July 31, 2019		587,133		$	4.90		3.66	$	2,877
Granted		—			—		—		—
Exercised		—			—		—		—
Cancelled / Forfeited		(259	)		4.90		—		—
Outstanding at January 31, 2020		586,874		$	4.90		3.15	$	2,876
Exercisable at January 31, 2020		586,874		$	4.90		3.15	$	2,876

During the six months ended January 31, 2020, 259 options were canceled due to employee terminations. At January 31, 2020, there was no unrecognized compensation cost related to non-vested stock options.

Restricted Stock

The fair value of restricted shares of the Company's Class B common stock is determined based on the closing price of the Company's Class B common stock on the grant date. Share awards generally vest on a graded basis over three years of service.

A summary of the status of the Company's grants of restricted shares of Class B common stock is presented below:

(unaudited)	Number of Non-vested Shares			Weighted- Average Grant-Date Fair Value
Outstanding at July 31, 2019		156,426		$	10.41
Granted		20,863			20.49
Vested		(14,144	)		17.25
Cancelled / Forfeited		—			—
NON-VESTED SHARES AT January 31, 2020		163,145		$	11.91

At January 31, 2020, there was $1.5 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, which is expected to be recognized over the next 2.40 years.