STOCK-BASED COMPENSATION ARRANGEMENTS

12 Months Ended

Oct. 31, 2014

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

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

12. STOCK-BASED COMPENSATION ARRANGEMENTS

On February 13, 2004, the stockholders approved a stock option plan that provides for the granting of stock-based awards. The plan covers employees, directors and consultants and provides for, among other things, the issuance of restricted stock, non-qualified options and incentive stock options under terms determined by the Company. In April 2014, the Company’s stockholders and Board of Directors approved an amendment to the Plan to increase the number of common shares available for issuance under the Plan by 428,571 shares. As of October 31, 2014, the Company had approximately 526,000 shares available for future issuances under the plan.

Non-cash compensation expenses related to stock options and restricted stock grants are recorded in general and administrative expenses in the accompanying consolidated statements of operations and totaled $1,117 and $1,416 for the years ended October 31, 2014 and 2013, respectively.

A summary of the status of the Company’s outstanding stock options as of October 31, 2014 and changes during the year then ended is presented below:

			Weighted
			Average
	Number Of		Exercise
	Shares		Price
Outstanding at beginning of year		480,526	$	14.69
Granted		58,639	$	1.66
Forfeited		(58,303)	$	4.29
Expired		(51,662)	$	79.35
Outstanding at end of year		429,200	$	6.54
Options exercisable at year-end		284,228	$	8.18
Weighted-average fair value of options granted during the year			$	1.26

The fair value of options granted during the year ended October 31, 2014 was $74. The intrinsic value of options outstanding at October 31, 2014 was $0. The weighted average contractual term of exercisable and outstanding options October 31, 2014 was 4.1 years and 4.8 years, respectively.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the years ended October 31:

	2014		2013
Risk free annual interest rate	1.4	%	0.9	%
Expected volatility	76	%	81	%
Expected life	4.25 years		4.18 years
Assumed dividends	None		None

The value of stock option grants is amortized over the vesting period of, generally, one to three years. As of October 31, 2014, there was approximately $236 of unrecognized compensation cost related to non-vested stock option awards, which is expected to be recognized over a remaining weighted-average vesting period of 1 year.

A summary of the status of the Company’s restricted stock grants as of October 31, 2014 and changes during the year then ended is presented below:

	2014
Balance at beginning of year		228,737
Granted		62,065
Vested		(127,034)
Cancelled		(37,529)
Outstanding at end of year		126,239

The fair value of restricted shares granted during the years ended October 31, 2014 and 2013 was $178 and $888, respectively. The fair value of restricted shares vested during the years ended October 31, 2014 and 2013 was $255 and $605, respectively.

The value of restricted stock grants are measured based on their fair value on the date of grant and amortized over the vesting period of, generally, six months to three years. As of October 31, 2014, there was approximately $456 of unrecognized compensation cost related to nonvested restricted stock awards, which is expected to be recognized over a remaining weighted-average vesting period of 1.4 years.