STOCK BASED COMPENSATION ARRANGEMENTS

3 Months Ended

Jan. 31, 2013

Stock Based Compensation Arrangements [Abstract]

STOCK BASED COMPENSATION ARRANGEMENTS

11. STOCK BASED COMPENSATION ARRANGEMENTS

The Company issued 54,647 shares of restricted stock during the three months ended January 31, 2013 and cancelled 234,353 shares of restricted stock. The Company issued 14,156 shares of restricted stock during the three months ended January 31, 2012 and cancelled 0 shares of restricted stock during the three months ended January 31, 2012. The Company values shares of restricted stock at fair value as of the grant date.

The Company issued 851,061 stock options during the three months ended January 31, 2013. The options have an exercise price of $0.77 per share and a seven-year term and vest in one year. The aggregate grant-date fair value of the options was $400, based on an estimated four-year life, expected volatility of 84.8% and an interest rate of 0.6%. The Company did not issue or cancel any options to purchase shares of common stock during the three months ended January 31, 2012.

Stock-based compensation amounted to $280 in the three months ended January 31, 2013 and $434 in the three months ended January 31, 2012.