Stock-Based Compensation

9 Months Ended

Apr. 30, 2018

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

Stock-Based Compensation

Note 7 - Stock-Based Compensation:

Stock Option Plans

As of April 30, 2018, 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 shares of common stock are reserved for issuance under the 2001 Stock Option Plan (the 2001 Plan) and 135,000 shares of common stock are reserved for issuance under the 2006 Stock Plan as amended (the 2006 Plan). At April 30, 2018, there were 4,139 and 64,485 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 or the value of the services provided, whichever is more readily determinable. The Black-Scholes option pricing model 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 Black-Scholes option pricing model was not used to estimate the fair value of any option grants in the nine months ended April 30, 2018 and 2017. 

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

	Options			Weighted Average Exercise Price per Share
Outstanding - July 31, 2017		18,095		$	31.02
Granted		—			—
Forfeited or expired		(4,730	)		1.00
Exercised		—			—
Outstanding - April 30, 2018		13,365		$	41.64

The 13,365 outstanding options at April 30, 2018 had a weighted average remaining contractual term of 0.4 years.

There were no non-vested common stock options granted, vested or forfeited under the Plan for the period ended April 30, 2018. As of April 30, 2018, the Company did not have any unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan.

The Company did not grant any options during the nine months ended April 30, 2018, or for the year ended July 31, 2017.

The following table summarizes information on stock options outstanding at April 30, 2018: 

		Options Outstanding and Options Exercisable
	Range of Exercise Price	Number Outstanding at April 30, 2018		Weighted Average Exercise Price	Weighted Average Remaining Life (Years)		Aggregate Intrinsic Value
$	1.00	12,515	$	1.00	0.43		24,404
$	640.00	850	$	640.00	1.86		—
		13,365	$	41.64	0.52	$	24,404