Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 3 Months Ended
Oct. 31, 2013
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. During the three months ended October 31, 2013, the Company sold an aggregate of 701,455 shares of common stock under the Sales Agreement at an average price of $2.48 per share and received proceeds of approximately $1.7 million, net of expenses.


Share-based compensation


The Company has an incentive stock option plan (the “1999 Plan”), 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, 2013. 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, 		 
    2013     2012  
Stock options   $ 47       —  
Restricted stock     56     $ 142  
    $ 103     $ 142  

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, 		 
    2013     2012  
Cost of clinical laboratory services   $ 2     $ 2  
Research and development     1       1  
Selling, general and administrative     100       139  
    $ 103     $ 142  

0 excess tax benefits were recognized during the three month periods ended October 31, 2013 and 2012.


Stock option plans


The following table summarizes stock option activity during the three month period ended October 31, 2013:


    Options     Weighted
Average
Exercise
Price 		    Weighted
Average
Remaining
Contractual
Term 		  Aggregate
Intrinsic
Value (000s) 		 
Outstanding at July 31, 2013     726,645     $ 10.39                
Awarded     10,000     $ 2.53                
Exercised     —     $                  
Cancelled or expired     (13,409 )   $ 12.39                
Outstanding at end of period     723,236     $ 10.24       2.4 years   $ —  
Exercisable at end of period     376,419     $ 17.04       0.7 years   $ —  

On October 3, 2013, the Company awarded 10,000 options to an officer with an exercise price of $2.53 and a five year term, which vest over four years. The fair value of the options granted was $1.23 per share. The assumptions used to fair value this option award were as follows: expected life of 4.75 years, expected volatility 57.6%, risk free interest rate of 1.3% and 0 dividend yield. As of October 31, 2013, 0 of these options were vested.


As of October 31, 2013, the total future compensation cost related to non-vested options, not yet recognized in the statements of operations, was $0.3 million and the weighted average period over which the remaining expense of these awards is expected to be recognized is 1.4 years.


Restricted Stock Awards


A summary of the activity pursuant to the Company’s restricted stock awards for the three months ended October 31, 2013 is as follows:


    Awards     Weighted
Average
Award Price 		 
Outstanding at July 31, 2013     125,133     $ 3.45  
Awarded     1,000       2.48  
Vested     (9,492 )     (1.75 )
Forfeited     —       —  
Unvested at end of period     116,641     $ 3.58  

The fair value of a restricted stock award is determined based on the closing stock price on the award date. As of October 31, 2013, there was approximately $0.2 million of unrecognized compensation cost related to unvested restricted stock-based compensation to be recognized over a weighted average remaining period of approximately one year.


The total number of shares available for grant as equity awards from the 2011 Incentive Plan is approximately 2,312,000 shares as of October 31, 2013.