STOCK-BASED COMPENSATION

3 Months Ended

Oct. 31, 2015

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 of $0 for the three months ended October 31, 2015 and 2014.

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 expired on March 1, 2012. No additional grants may be made under the 2000 Plan; however, previously granted options will remain in force pursuant to the terms of the individual grants.

In November 2010, the Company’s 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. Subject to adjustment in certain circumstances, the 2011 Plan authorizes up to 4,000,000 shares of the Company’s 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 October 31, 2015.

The Company did not grant any stock options during the three months ended October 31, 2015 or 2014.

A summary of the Company’s stock option activity for the three months ended October 31, 2015 is as follows:

	Shares		Weighted Average Exercise Price		Weighted average remaining contractual term (years)		Aggregate intrinsic Value
Options outstanding, July 31, 2015		378,750	$	0.380
Options granted		-		n/a
Options exercised		-		n/a
Options forfeited or expired		-		n/a
Options outstanding, October 31, 2015		378,750	$	0.380		0.88	$	0
Options expected to vest, October 31, 2015		378,750	$	0.380		0.88	$	0
Options exercisable, October 31, 2015		378,750	$	0.380		0.88	$	0

Of the 378,750 options outstanding at October 31, 2015, 378,750 were issued under the 2000 Plan and none were issued outside of shareholder approved plans. There were no options exercised during the three month periods ended October 31, 2015 and 2014. There were no options forfeited or expired during the three month periods ending October 31, 2015 and 2014.

As of October 31, 2015, there was no unrecognized costs related to outstanding stock options.