12. STOCK-BASED COMPENSATION

In the years ended October 31, 2015 and 2014, the Company recorded stock-based compensation expense amounting to $1,436 and $1,117, respectively, related to restricted stock awards and stock options.

Incentive Compensation Plans

In the fiscal years ended October 31, 2015 and 2014, the Company made stock-based compensation awards under its 2014 Equity Incentive Plan (the “2014 Plan”) and its Amended and Restated 2004 Employee, Director and Consultant Incentive Plan (the “2004 Plan”).

2014 Plan

In the fiscal year ended October 31, 2015, the Company adopted the 2014 Plan, an omnibus equity incentive plan administered by the Company’s board of directors, or by one or more committees of directors appointed by the Board, pursuant to which the Company may issue up to 2,250,000 shares of the Company’s common stock under equity-linked awards to certain officers, employees, directors and consultants. The 2014 Plan permits the grant of stock options, including incentive stock options and nonqualified stock options, stock appreciation rights, restricted shares, restricted share units, cash awards, or other awards, whether at a fixed or variable price, upon the passage of time, the occurrence of one or more events, or the satisfaction of performance criteria or other conditions, or any combination thereof. As of October 31, 2015, the Company had approximately 482,000 shares available for future issuances under the 2014 Plan.

The 2004 Plan covers employees, directors and consultants and also provides for the issuance of restricted stock, non-qualified stock options, incentive stock options and other awards 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, 2015, the Company had approximately 115,300 shares available for future issuances under the 2004 Plan.

Stock Options

Stock-option activity in the fiscal year ended October 31, 2015:

			Weighted
			Average
	Number Of		Exercise
	Shares		Price
Outstanding at beginning of period		429,200	$	6.54
Granted		330,420	$	0.74
Forfeited		(85,131)	$	5.33
Expired		(95,004)	$	10.18
Outstanding at end of period		579,485	$	2.82
Options exercisable at year-end		572,492	$	2.83
Weighted-average fair value of options granted during the year			$	0.82

Stock options are generally granted to employees or directors at exercise prices equal to the fair market value of the Company’s stock at the dates of grant. Stock options generally vest over one to three years and have a term of one to five years. The fair value of options granted during the year ended October 31, 2015 was $271. The intrinsic value of options outstanding at October 31, 2015 was $175. The weighted average contractual term of exercisable and outstanding options October 31, 2015 was 1.4 years and 1.4 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:

	2015		2014
Risk free annual interest rate	1.4	%	1.4	%
Expected volatility	80	%	76	%
Expected life	4.77 years		4.25 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, 2015, there was approximately $15 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.

Restricted-stock activity in the fiscal year ended October 31, 2015:

	Number of shares		Weighted-Average Grant-Date Fair Value
Unvested at beginning of period		126,239	$	4.76
Granted		2,038,875	$	1.11
Vested		(680,891)	$	1.48
Forfeited		(99,432)	$	1.33
Unvested at end of period		1,384,791	$	1.25

The weighted-average fair value of restricted shares granted during the year ended October 31, 2014 was $1.78. The total fair value of restricted stock vested during the years ended October 31, 2015 and 2014 was $865 and $255, 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, 2015, there was approximately $1,618 of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a remaining weighted-average vesting period of 0.9 years. The vesting period of 1,325,000 restricted shares is subject to acceleration upon the achievement of certain performance conditions related to financing or other corporate transactions.