Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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

Note 9 – Stockholders’ Equity


Controlled Equity Offering


The Company has 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”). The Company pays Cantor a commission of 3.0% of the aggregate gross proceeds received under the Sale 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. The initial agreement contemplated the sale of shares of the Company’s common stock having an aggregate offering price of up to $20.0 million. In December 2014, the Sales Agreement was amended in order for the Company to offer and sell additional shares of Common Stock having an aggregate offering price of $20.0 million.


On September 1, 2017, the Company filed with the SEC a “shelf” registration and sales agreement prospectus covering the offering, issuance and sale of our Common Stock that may be issued and sold under the existing Sales Agreement in an aggregate amount of up to $19.15 million. A total of $150 million of securities may be sold under this shelf registration, which was declared effective September 15, 2017.


During the three months ended October 31, 2017 and during fiscal 2017, the Company did not sell any shares of Common Stock under the Sales Agreement.


Treasury stock


During the three months ended October 31, 2017 certain officers of the Company exercised 271,591 stock options in non-cash transactions. The officers surrendered 80,751 shares of the Company’s common stock to exercise the stock options. The Company recorded approximately $815, the market value of the surrendered shares, as treasury stock.


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, 2017. 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
October 31,
 
    2017   2016  
Stock options   $ 202   $ 146  
Restricted stock     3     5  
    $ 205   $ 151  

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
October 31,
 
    2017     2016  
Cost of clinical laboratory services   $     $ 2  
Selling, general and administrative     205       149  
    $ 205     $ 151  

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


Stock Option Plans


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


    Options     Weighted
Average
Exercise
Price
    Weighted
Average
Remaining
Contractual
Term
    Aggregate
Intrinsic
Value (000s)
 
Outstanding at July 31, 2017     2,130,995     $ 4.26                  
Awarded         $                  
Exercised     (487,106 )   $ 3.03             $ 4,940  
Cancelled or expired     (19,334 )   $ 5.92                  
Outstanding at end of period     1,624,555     $ 4.62       2.8 years     $ 12,313  
Exercisable at end of period     903,868     $ 3.39       1.6 years     $ 5,838  

As of October 31, 2017, the total future compensation cost related to non-vested options, not yet recognized in the statements of operations, was $1.0 million and the weighted average period over which the remaining expense of these awards is expected to be recognized is fourteen 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 vested.


Restricted Stock Awards


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


    Awards     Weighted
Average
Award Price
 
Outstanding at July 31, 2017     7,436     $ 4.45  
Awarded            
Vested     (1,001 )   $ (4.84 )
Forfeited            
Unvested at end of period     6,435     $ 3.85  

The fair value of a restricted stock award is determined based on the closing stock price on the award date. As of October 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 twenty five months.


The fair value of the awards that vested during the three months ended October 31, 2017 and 2016 was $10 and $8, respectively.


The total number of shares available for grant as equity awards from the 2011 Incentive Plan is approximately 349,600 shares as of October 31, 2017.