Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

Stockholders' Equity
6 Months Ended
Jan. 31, 2017
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]

Note 9 – Stockholders’ Equity

Controlled Equity Offering

On March 28, 2013, the Company entered into a Controlled Equity OfferingSM Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co., as sales agent (“Cantor”). Under the Sales Agreement, the Company may offer and sell, from time to time, through Cantor, shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), having an aggregate offering price of up to $20.0 million (the “Shares”). The Company will pay Cantor a commission of 3.0% of the aggregate gross proceeds received under the Sales Agreement. The Company is not obligated to make any sales of the Shares under the Sales Agreement. The offering of Shares pursuant to the Sales Agreement will terminate upon the earlier of (a) the sale of all of the Shares subject to the Sales Agreement or (b) the termination of the Sales Agreement by Cantor or the Company, as permitted therein.

On December 31, 2014, the Sales Agreement was amended in order for the Company to offer and sell, through Cantor, acting as agent, additional shares of Common Stock having an aggregate offering price of $20.0 million.  In connection with the amendment to the Sales Agreement, the Company also filed with the Security and Exchange Commission (“SEC”) a prospectus supplement dated December 31, 2014. 

Most recently with respect to the Sales Agreement, the Company filed a “shelf” registration and prospectus supplement dated September 1, 2016 which was declared effective by the SEC on November 3, 2016.

During the six months ended January 31, 2017 and 2016, the Company did not sell any shares of Common Stock under the Sales Agreement.

Share-based compensation

The Company has an incentive stock option and restricted stock award plan (the “2005 Plan”), and a long term incentive share award plan, (the “2011 Incentive Plan”), which are more fully described in Note 10 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2016. The 2011 Plan, which is the only plan from which awards may now be granted, provides for the award to eligible employees, officers, directors, consultants and other persons of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, performance awards, and other stock-based awards.

The amounts of share-based compensation expense recognized in the periods presented are as follows:

    Three months ended
January 31,
    Six months ended
January 31,
    2017     2016     2017     2016  
Stock options   $ 236     $ 104     $ 382     $ 208  
Restricted stock     5       6       10       13  
    $ 241     $ 110     $ 392     $ 221  

The following table sets forth the amount of expense related to share-based payment arrangements included in specific line items in the accompanying statements of operations:

    Three months ended
January 31,
    Six months ended
January 31,
    2017     2016     2017     2016  
Cost of clinical laboratory services   $ 1     $ 2     $ 3     $ 3  
Selling, general and administrative     240       108       389       218  
    $ 241     $ 110     $ 392     $ 221  

No excess tax benefits were recognized during the six month periods ended January 31, 2017 and 2016.

Stock Option Plans

The following table summarizes stock option activity during the six month period ended January 31, 2017:

    Options     Weighted
Value (000s)
Outstanding at July 31, 2016     1,808,875     $ 3.43              
Awarded     493,996     $ 7.07              
Exercised     (23,096 )   $ 2.89         $ 149  
Cancelled or expired     (5,000 )   $ 4.47              
Outstanding at end of period     2,274,775     $ 4.23     1.4 years   $ 5,797  
Exercisable at end of period     1,379,555     $ 3.18             0.5 years   $ 4,853  

As of January 31, 2017, the total future compensation cost related to non-vested options, not yet recognized in the statements of operations, was $1.6 million and the weighted average period over which the remaining expense of these awards is expected to be recognized is twenty-three months.

The intrinsic value of in the money stock option awards that are vested at the end of the period represents the Company’s closing stock price on the last trading day of the period in excess of the exercise price multiplied by the number of options that vested.

Restricted Stock Awards

A summary of the activity pursuant to the Company’s unvested restricted stock awards for the six months ended January 31, 2017 is as follows:

    Awards     Weighted
Award Price
Outstanding at July 31, 2016     8,501     $ 4.13  
Vested     (1,501 )   $ (3.89 )
Unvested at end of period     7,000     $ 2.30  

The fair value of a restricted stock award is determined based on the closing stock price on the award date. As of January 31, 2017, there was approximately $0.1 million of unrecognized compensation cost related to unvested restricted stock-based compensation to be recognized over a weighted average remaining period of approximately ten months.

The fair value of the awards that vested during the six months ended January 31, 2017 and 2016 was $8 and $21, respectively.

The total number of shares available for grant as equity awards from the 2011 Incentive Plan is approximately 329,000 shares as of January 31, 2017.