STOCK-BASED COMPENSATION

12 Months Ended

Jul. 31, 2014

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

4. STOCK-BASED COMPENSATION

The Company measures the cost of employee, officer and director services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The fair value of the Company’s stock option awards is expensed over the vesting life of the underlying stock options using the graded vesting method, with each tranche of vesting options valued separately. The Company recorded stock based compensation expense of $4,000 and $12,000, respectively, for the years ended July 31, 2014 and 2013. All stock based compensation is included in the Company’s selling, general and administrative costs and expenses.

The Company’s 2000 Stock Option Plan, as amended (the “2000 Plan”), provides for the issuance of up to 2,000,000 shares of the Company’s common stock. The 2000 Plan allows the issuance of incentive stock options, stock appreciation rights and restricted stock awards. The exercise price of the options is determined by the compensation committee of the Company’s Board of Directors, but incentive stock options, if any, must be granted at an exercise price not less than the fair market value of the Company’s common stock as of the grant date or an exercise price of not less than 110% of the fair value for a 10% shareholder. Options expire up to ten years from the date of the grant and are exercisable according to the terms of the individual option agreements. The 2000 Plan has expired and no future grants can be made from the 2000 Plan; however, previously granted options will remain in force pursuant to the terms of the individual grants.

In November 2010, the Board and Compensation Committee approved the Non-Invasive Monitoring Systems, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). Awards granted under the 2011 Plan may consist of incentive stock options, stock appreciation rights (SAR), restricted stock grants, restricted stock units (RSU) performance shares, performance units or cash awards. The 2011 Plan authorizes up to 4,000,000 shares of our common stock for issuance pursuant to the terms of the 2011 Plan. The 2011 Plan was approved by our shareholders in March 2012 and no awards have been granted under the 2011 Plan as of July 31, 2014.

The Company did not grant any stock options for the years ended July 31, 2014 and 2013.

A summary of the Company’s stock option activity for the years ended July 31, 2014 and 2013 is as follows:

	Shares		Weighted Average Exercise Price		Weighted average remaining contractual term (years)		Aggregate Intrinsic Value
Options outstanding, July 31, 2012		1,281,250	$	0.573
Options granted		0	$	0.000
Options exercised		0	$	0.000
Options forfeited		(667,500)	$	0.791
Options outstanding, July 31, 2013		613,750	$	0.335
Options granted		0	$	0.000
Options exercised		0	$	0.000
Options forfeited		(235,000)	$	0.264
Options outstanding, July 31, 2014		378,750	$	0.380		2.13	$	0
Options expected to vest, July 31, 2014		378,750	$	0.380		2.13	$	0
Options exercisable, July 31, 2014		378,750	$	0.380		2.13	$	0

All of the 378,750 options outstanding at July 31, 2014 were issued under the 2000 Plan. The options forfeited in the years ended July 31, 2014 and 2013 include both those granted under the 2000 Plan as well as those granted outside of the shareholder approved plans.

There were no options exercised for the year ended July 31, 2014 and 2013.

As of July 31, 2014, there were no unrecognized costs related to outstanding stock options.