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Share-Based Compensation Plans
 6 Months Ended
Apr. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation Plans
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 six months ended April 30, 2012 and 2011 were as follows:
 
 
Three Months  Ended
April 30,
 
Six Months  Ended
April 30,
 
2012
 
2011
 
2012
 
2011
Cost of product sales and revenues
$
77

 
$
260

 
$
216

 
$
403

Cost of research and development contracts
16

 
52

 
37

 
71

General and administrative expense
160

 
485

 
457

 
891

Research and development expense
49

 
29

 
132

 
241

Total share-based compensation
$
302

 
$
826

 
$
842

 
$
1,606


The following table summarizes stock option activity for the six months ended April 30, 2012:
 
 
Number of
options
 
Weighted
average
option  price ($)
Outstanding at October 31, 2011
3,320,558

 
8.25

Granted
342,293

 
1.28

Cancelled
(377,325
)
 
12.42

Outstanding at January 31, 2012
3,285,526

 
7.05


As of April 30, 2012, there were 3,230,016 RSAs outstanding with a weighted average per share fair value of $0.84. There were 1,939,940 RSA's granted during the six months ended April 30, 2012 and forfeitures totaled 42,247 during this period.

For the six months ended April 30, 2012, 92,668 shares were issued under the ESPP at a per share cost of $0.91. There were 774,373 shares of common stock reserved for issuance under the ESPP as of April 30, 2012.