Share-Based Compensation

12 Months Ended

Jul. 31, 2014

9.	Share-Based Compensation

The Company previously had outstanding equity awards issued under several equity compensation plans, including the 1999 Stock Incentive Plan, the 2009 Stock Incentive Plan, the 2009 Non-employee Director Stock Option Plan and the 1999 Non-employee Director Stock Option Plan. Upon effectiveness of the Dissolution, the Company terminated its equity compensation plans and all outstanding stock-based awards under the plans were cancelled.

Prior to the termination of the equity compensation plans, the Company estimated the fair value of stock options using the Black-Scholes valuation model. Key input assumptions used to estimate the fair value of stock options included the exercise price of the award, the expected option term, the expected volatility of the Company’s stock over the option’s expected term, the risk-free interest rate over the option’s expected term, and the Company’s expected annual dividend yield. The Company did not grant any stock options during the eight months ended March 23, 2013.

The following table presents share-based compensation expense included in the Company’s consolidated statements of operations for the eight months ended March 23, 2013 (in thousands):


	Eight Months Ended March 23, 2013
Cost of product revenue	$	—
Cost of service revenue		—
Research and development		312
Sales and marketing		126
General and administrative		312
Discontinued operations		525

Share-based compensation expense	$	1,275

Stock Option Activity

As a result of the termination of the Company’s equity compensation plans and cancellation of all unexercised option awards issued thereunder upon the effectiveness of the Dissolution, there were no stock options outstanding or exercisable at July 31, 2014.

The intrinsic value of stock options exercised, calculated as the difference between the market value of the shares on the exercise date and the exercise price of the option, was $5 thousand for fiscal year 2013.

The total cash received from employees as a result of employee stock option exercises during fiscal year 2013 was $38 thousand.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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