Stock-Based Compensation:

9 Months Ended

12 Months Ended

Apr. 30, 2013

Jul. 31, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 3 – Stock-Based Compensation:

As of April 30, 2013, the Company had two stockholder-approved stock incentive plans under which shares and options exercisable for shares of common stock have been or may be granted to employees, directors, consultants and advisors. A total of 12,000,000 shares of common stock are reserved for issuance under the 2001 Stock Option Plan (the 2001 Plan) and 60,000,000 shares of common stock are reserved for issuance under the 2006 Stock Plan as amended (the 2006 Plan). At April 30, 2013, there were 4,555,222 and 19,389,704 shares of common stock reserved for future awards under the 2001 Plan and 2006 Plan, respectively. The Company issues new shares of common stock from the shares reserved under the respective Plans upon conversion or exercise of options and issuance of restricted shares.

The 2001 and 2006 Plans (the Plans) are administered by the Board of Directors (the Board). The Board is authorized to select from among eligible employees, directors, advisors and consultants those individuals to whom options are to be granted and to determine the number of shares to be subject to, and the terms and conditions of the options. The Board is also authorized to prescribe, amend and rescind terms relating to options granted under the Plans. Generally, the interpretation and construction of any provision of the Plans or any options granted hereunder is within the discretion of the Board.

The Plans provide that options may or may not be Incentive Stock Options (ISOs) within the meaning of Section 422 of the Internal Revenue Code. Only employees of the Company are eligible to receive ISOs, while employees and non-employee directors, advisors and consultants are eligible to receive options which are not ISOs, i.e. “Non-Qualified Options.” The options granted by the Board in connection with its adoption of the Plans were Non-Qualified Options. In addition, the 2006 Plan also provides for restricted stock grants.

The fair value of each option granted is estimated on the grant date using the Black-Scholes option pricing model which takes into account as of the grant date the exercise price and expected life of the option, the current price of the underlying stock and its expected volatility, expected dividends on the stock and the risk-free interest rate for the term of the option.

In the case of restricted stock grants under the 2006 Plan, fair market value of the shares is established as the market price on the date of the stock grant.

The following is a summary of the common stock options granted, forfeited or expired and exercised under the Plans for the nine months ended April 30, 2013:

			Weighted
			Average
			Exercise		Aggregate
			Price		Intrinsic
	Options		Share		Value
Outstanding, August 1, 2012		10,979,634	$	0.257
Add: Granted		17,630,299		0.001
Less: Forfeited or expired		485,778		0.727
Less: Exercised		1,056,488		0.001	$	37,320
Outstanding, April 30, 2013		27,067,667		$  0.092.	$	546,025
Exercisable, April 30, 2013		26,995,167		$ 0.090.	$	546,025

The 27,067,667 outstanding options at April 30, 2013 had a weighted average remaining contractual term of 4.36 years.

The following is a summary of the non-vested common stock options granted, vested and forfeited under the Plan for the nine months ended April 30, 2013:

				Weighted Average
				Grant Date
	Options			Fair Value
Outstanding, August 1, 2012		172,500		$	0.46
Granted		17,630,299			0.001
Vested		(17,716,549	)		0.022
Forfeited		(13,750	)		0.46
Outstanding, April 30, 2013		72,500		$	0.46

As of April 30, 2013, the Company had $14,883 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plans. That cost is expected to be recognized over a weighted-average period of 0.45 years.

Note 14 – Stock-Based Compensation:

Stock Option Plans

As of July 31, 2012, the Company had three stockholder-approved stock incentive plans under which shares and options exercisable for shares of common stock have been or may be granted to employees, directors, consultants and advisors. A total of 2,000,000 shares of common stock are reserved for issuance under the 2000 Stock Option Plan (the 2000 Plan), a total of 12,000,000 shares of common stock are reserved for issuance under the 2001 Stock Option Plan (the 2001 Plan) and 30,000,000 shares of common stock are reserved for issuance under the 2006 Stock Plan (the 2006 Plan). In July 2009, the 2006 Plan was amended to increase the reserved shares from 10,000,000 to 30,000,000. Restricted shares can only be issued under the 2006 Plan. At July 31, 2012, there were 2,000,000, 4,124,444 and 8,521,489 shares of common stock reserved for future awards under the 2000 Plan, 2001 Plan and 2006 Plan, respectively. The Company issues new shares of common stock from the shares reserved under the respective Plans upon conversion or exercise of options and issuance of restricted shares.

The 2000, 2001 and 2006 Plans (the Plans) are administered by the Board of Directors (the Board). The Board is authorized to select from among eligible employees, directors, advisors and consultants those individuals to whom options are to be granted and to determine the number of shares to be subject to, and the terms and conditions of the options. The Board is also authorized to prescribe, amend and rescind terms relating to options granted under the Plans. Generally, the interpretation and construction of any provision of the Plans or any options granted hereunder is within the discretion of the Board.

The Plans provide that options may or may not be Incentive Stock Options (ISOs) within the meaning of Section 422 of the Internal Revenue Code. Only employees of the Company are eligible to receive ISOs, while employees and non-employee directors, advisors and consultants are eligible to receive options which are not ISOs, i.e. “Non-Qualified Options.” The options granted by the Board in connection with its adoption of the Plans were Non-Qualified Options. In addition, the 2006 Plan also provides for restricted stock grants.

Share-based employee compensation related to stock options for the years ended July 31, 2012, 2011 and 2010 amounted to $602,384, $936,465 and $1,765,381 for each year and were charged to the consolidated statements of operations.  Share-based employee compensation related to common stock grants for the years ended July 31, 2012, 2011 and 2010 amounted to $130,544, $100,999 and $104,738, respectively, and were charged to the consolidated statements of operations.

The fair value of each option granted is estimated on grant date using the Black-Scholes option pricing model which takes into account as of the grant date the exercise price and expected life of the option, the current price of the underlying stock and its expected volatility, expected dividends on the stock and the risk-free interest rate for the term of the option. The following is the average of the data used to calculate the fair value for the options granted in the fiscal years ended July 31, 2011 and 2010:

	Risk-Free			Expected		Expected			Expected
	Interest Rate			Life (Years)		Volatility			Dividends
July 31, 2011		0.013	%		5.0		101	%		-0-
July 31, 2010		0.14	%		6.5		104	%		-0-

The Black-Scholes option pricing model was not used to estimate the fair value any option grants in the fiscal year ended July 31, 2012.

The following is a summary of the common stock options granted, forfeited or expired and exercised under the Plan:

				Weighted Average
				Exercise Price
	Options			per Share
Outstanding - August 1, 2009		5,067,138		$	0.44
Granted		2,705,000		$	0.63
Forfeited		(270,000	)	$	0.92
Expired		(36,500	)	$	0.63
Exercised		—		$	0.00
Outstanding - July 31, 2010		7,465,638		$	0.49
Granted		3,300,000		$	0.28
Forfeited or expired		(2,848,704	)	$	0.41
Exercised		(576,752	)	$	0.001
Outstanding - July 31, 2011		7,340,182		$	0.46
Granted		5,851,696		$	0.001
Forfeited or expired		(912,250	)	$	0.65
Exercised		(1,299,994	)	$	0.001
Outstanding - July 31, 2012		10,979,634		$	0.26
Exercisable - July 31, 2012		10,807,134		$	0.25

The 10,979,634 outstanding options at July 31, 2012 had a weighted average remaining contractual term of 4.16 years.

Options typically vest over a period of two to four years and have a contractual life of five to ten years.

The following is a summary of the non-vested common stock options granted, vested and forfeited under the Plan:

				Weighted Average
				Grant Date
	Options			Fair Value
Outstanding - August 1, 2011		845,836		$	0.50
Granted		5,851,696		$	0.001
Vested		(6,322,532	)	$	0.04
Forfeited		(202,500	)	$	0.46
Outstanding - July 31, 2012		172,500		$	0.46

As of July 31, 2012, the Company had $47,360 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 1.2 years.

During the twelve months ended July 31, 2012, the Company granted 5,851,696 options to executives, employees and directors in full and final payment of obligations to pay such individuals deferred salary or director fees. The options were issued in lieu of cash payment of deferred compensation amounts due to such individuals. The number of options granted to each individual was equal to the dollar amount of deferred salary or fees due to such individual divided by the closing price of the Company's common stock on June 6, 2012 ($0.0925). The stock options had an exercise price equal to $0.001 per share and were made pursuant to the terms of the Company's 2006 Stock Plan. The options were fully vested at the date of grant and expire on the fifth anniversary of the date of grant. The grants were valued at the amount of deferred compensation owed to each such individual.

During the twelve months ended July 31, 2011, the Company granted 3,300,000 options to executives, directors and management employees, as compensation. The total fair value of the options at the date of grant was $692,010. The options vested immediately and a charge of $692,010 was recorded at the date of grant. The fair value of each option granted was estimated on the grant date using the Black-Scholes option pricing model, taking into account the grant date exercise price and current price of the underlying stock of $0.282, an expected life of the option of 5 years, an expected volatility of 101.3%, expected dividends on the stock of $0 and the risk-free interest rate for the term of the option of 0.13%.

The following table summarizes information on stock options outstanding at July 31, 2012:

	Options Outstanding
					Weighted
	Number		Weighted		Average
	Outstanding		Average		Remaining		Aggregate
Range of	at		Exercise		Life		Intrinsic
Exercise Price	July 31, 2012		Price		(Years)		Value
$0.001 - $0.18		5,093,856	$	0.001		4.61
$0.19 - $0.56		3,250,000	$	0.28		3.60
$0.57 - $0.63		200,000	$	0.56		2.24
$0.64 - $0.65		1,658,500	$	0.63		4.98
$0.66 - $0.96		777,278	$	0.94		2.24
		10,979,634	$	0.26		4.16	$	468,635

	Options Exercisable
					Weighted
	Number		Weighted		Average
	Outstanding		Average		Remaining		Aggregate
Range of	at		Exercise		Life		Intrinsic
Exercise Price	July 31, 2012		Price		(Years)		Value
$0.001 - $0.18		5,093,856	$	0.001		4.61
$0.19 - $0.56		3,250,000	$	0.28		3.60
$0.57 - $0.63		200,000	$	0.56		2.24
$0.64 - $0.65		1,486,000	$	0.63		4.98
$0.66 - $0.96		777,278	$	0.94		2.24
		10,807,134	$	0.25		4.19	$	468,635

	For the Year Ended July 31,
	2012		2011		2010
Weighted Average Grant Date Fair Value of Options Granted	$	0.09	$	0.21	$	0.53
Aggregate Intrinsic Value of Options Exercised	$	119,214	$	166,681	$	—
Cash Received for Exercise of Stock Options	$	1,299	$	577	$	—

The intrinsic value is calculated as the difference between the market value as of July 31, 2012, 2011 and 2010 and the exercise price of the shares on the respective dates. The market values as of July 31, 2012, 2011 and 2010 were $0.093, $0.13 and $0.40, respectively, based on the high and low bid information for July 31, 2012 and 2011 and as reported by the NASDAQ Stock Market as of July 31, 2010.