Stock-Based Compensation (Tables)

6 Months Ended

Jan. 31, 2015

The following table provides information about stock-based awards outstanding at January 31, 2015:

	Shares			Weighted Average Exercise Price		Weighted Average Fair Value
Options outstanding beginning of period		815,162		$	4.25	$	3.27
For the period August 1, 2014 through January 31, 2015
Granted		340,000		$	3.43	$	2.51
Forfeited		--			--		--
Exercised		(22,500	)	$	1.27	$	1.02
Options outstanding, end of period		1,132,662		$	4.06	$	3.09
Options exercisable, end of period		667,351		$	4.21	$	3.25

Assumptions used to derive weighted fair value of options granted

The fair value of all options granted during the second quarter of fiscal 2015 was determined at the date of the grant using the Black-Scholes option-pricing model and the following assumptions:

Expected average risk-free interest rate		2.10 to 2.19%
Expected average life (in years)		10
Expected volatility		65.7%
Expected dividend yield		0.0%

Information about restricted stock grants

The following table provides information about restricted stock grants during the six month period ended January 31, 2015:

	Number of Shares			Weighted Average Grant Date Fair Value
Balance as of July 31, 2014		275,547		$	3.42
Granted		207,000		$	3.43
Forfeited		(2,834	)	$	4.74
Vested		(154,003	)	$	2.52
Relinquished for taxes		(27,014	)	$	2.52
Balance as of January 31, 2015		298,696		$	3.96