Quarterly report pursuant to sections 13 or 15(d)

Stock Options And Warrants

v2.4.0.6
Stock Options And Warrants
 6 Months Ended
Nov. 30, 2011
Stock Options And Warrants [Abstract]  
Stock Options And Warrants

5 - Stock Options and Warrants

The Company has one stock-based equity plan at November 30, 2011. Pursuant to the 2004 Stock Incentive Plan as amended (the "Plan"), which was originally adopted by the Company's shareholders in 2005, the Company was authorized to issue options and warrants to purchase up to 7,600,000 shares of the Company's common stock. As of November 30, 2011 the Company had 3,425,500 shares available for future stock option grants under the Plan.

During the six months ended November 30, 2011, the Company granted 700,000 common stock options with an exercise price of $2.00, which vest ratably over one to four years and have an expiration date of five years from the date of grant.

Net cash proceeds from the exercise of stock options and warrants was $-0- for the three and six months ended November 30, 2011 and 2010, respectively.

Compensation expense related to stock options and warrants was approximately $550,000 and $791,000, and $218,000 and $451,000, for the three and six months ended November 30, 2011 and 2010, respectively.

The grant date fair value of options and warrants vested during the three and six month periods ended November 30, 2011 and 2010 was approximately $245,000 and $456,000, and $218,000 and $451,000, respectively. The weighted average grant date fair value of options and warrants granted during the six month periods ended November 30, 2011 and 2010 was $1.25 and $0.90, respectively. As of November 30, 2011 there was approximately $2,224,000 of unrecognized compensation costs related to share-based payments for unvested options, which is expected to be recognized over a weighted average period of 2.39 years.

 

The following table represents stock option and warrant activity as of and for the six months ended November 30, 2011:

 

     Number of
Shares		      Weighted
Average
Exercise Price		      Weighted
Average
Remaining
Contractual  Life 		     Aggregate
Intrinsic Value		  

Options and warrants outstanding - May 31, 2011

      7,473,576       $ 1.34         3.84       $ 10,495,913   

Granted

      700,000       $ 2.00         

Exercised

      225,500       $ 0.30         

Forfeited/expired/cancelled

      —           —           

Options and warrants outstanding - November 30, 2011

      7,948,076       $ 1.42         3.56       $ 10,542,674   

Outstanding exercisable - November 30, 2011

      6,101,687       $ 1.32         3.16       $ 8,717,229