Stock Based Compensation

6 Months Ended

Jan. 31, 2013

Stock Based Compensation

2. Stock Based Compensation

Equity Incentive Plans

The Company’s Equity Incentive Plans, adopted in fiscal years 1997, 1999 and 2001, authorize the granting of incentive stock options, supplemental stock options, stock bonuses, and restricted stock purchase agreements to officers, directors, and employees of the Company and to non-employee consultants. The board of directors has declared that no future grants will be made under the plan adopted in 1997. Incentive stock options are granted only to employees and are issued at prices not less than the fair market value of the stock at the date of grant. The options generally vest over a four-year period and the term of any option cannot be greater than ten years from the date of grant. Restricted stock purchase agreements are issued at prices not less than 85% of the fair market value of the stock at the date of grant. During the six months ended January 31, 2013, there were no options to purchase shares of common stock and no restricted stock granted by the Company.

Employee Stock Purchase Plan

The Employee Stock Purchase Plan permits employees to purchase up to 200,000 shares of the Company’s common stock. The purchase price under this plan is 85% of the fair market value of the common stock at the beginning of an offering period or on a purchase date, whichever is less. Offering periods generally last one year with purchase dates six and twelve months from the beginning of an offering period. During the six months ended January 31, 2013, there were no shares purchased by employees under the plan.

Stock-based compensation of $0 and $3,000 was recognized for the six months ended January 31, 2013 and 2012, respectively. As of January 31, 2013, the Company has no unrecognized compensation costs related to unvested stock options under the Plans. The aggregate intrinsic value of both options outstanding and options exercisable as of January 31, 2013 was $0. All options outstanding were fully vested as of January 31, 2013. During the six months ended January 31, 2013, no options to purchase common stock were exercised.

General Stock Option Information

Activity in the Company’s stock option plans since July 31, 2012 is as follows:

	Shares Available for Grant		Options Outstanding			Weighted Average Exercise Price
Options at August 1, 2012		307,344		68,933		$	11.19
Granted		—		—			—
Exercised		—		—			—
Cancelled		—		(800	)		1.40
Options at January 31, 2013		307,344		68,133		$	11.30