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Share-Based Compensation Plans
 9 Months Ended
Jul. 31, 2011
Share-Based Compensation Plans [Abstract]  
Share-Based Compensation Plans
Note 10. Share-Based Compensation Plans
We have shareholder approved equity incentive plans and a shareholder approved Section 423 Stock Purchase Plan (the “ESPP”). We account for stock awards to employees and non-employee directors under the fair value method. We determine the fair value of stock options at the grant date using the Black-Scholes valuation model. The model requires us to make estimates and assumptions regarding the expected life of the award, the risk-free interest rate, the expected volatility of our common stock price and the expected dividend yield. The fair value of restricted stock awards (“RSA”) is based on the common stock price on the date of grant. The fair value of stock awards is amortized to expense over the vesting period, generally four years.
Share-based compensation reflected in the consolidated statements of operations for the three and nine months ended July 31, 2011 and 2010 was as follows:
                                 
    Three Months Ended     Nine Months Ended  
    July 31,     July 31,  
    2011     2010     2011     2010  
Cost of product sales and revenues
  $ 201     $ 191     $ 604     $ 583  
Cost of research and development contracts
    34       53       105       130  
General and administrative expense
    98       408       989       974  
Research and development expense
    108       139       349       480  
 
                       
Total share-based compensation
  $ 441     $ 791     $ 2,047     $ 2,167  
 
                       
The following table summarizes stock option activity for the nine months ended July 31, 2011:
                 
            Weighted  
    Number of     average  
    options     option price ($)  
Outstanding at October 31, 2010
    5,118,201       10.15  
Granted
    216,657       1.98  
Cancelled
    (1,417,550 )     13.43  
 
             
Outstanding at July 31, 2011
    3,917,308       8.58  
 
             
As of July 31, 2011, there were 1,918,202 RSAs outstanding with a weighted average per share fair value of $2.16. During the three and nine months ended July 31, 2011, 95,922 and 1,393,538 RSA’s respectively, were granted and forfeitures totaled 236,407 during this period.
For the three and nine months ended July 31, 2011, 69,561 and 129,643 shares respectively, were issued under the ESPP at a per share cost of $0.97. There were 998,060 shares of common stock reserved for issuance under the ESPP as of July 31, 2011.