Quarterly report pursuant to sections 13 or 15(d)

Stock Options And Warrants

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Stock Options And Warrants
 3 Months Ended
Aug. 31, 2011
Stock Options And Warrants [Abstract]  
Stock Options And Warrants

5 - Stock Options and Warrants

The Company has one stock-based equity plan at August 31, 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 August 31, 2011 the Company had 3,425,500 shares available for future stock option grants under the Plan.

During the three months ended August 31, 2011, the Company granted 200,000 common stock options with an exercise price of $2.00, which vest ratably over one-year and have an expiration date of five years from the date of grant.

Net cash proceeds from the exercise of stock options and warrants were $-0- for the three months ended August 31, 2011 and 2010, respectively.

Compensation expense related to stock options and warrants was approximately $242,000, and $233,000 for the three months ended August 31, 2011 and 2010, respectively.

The grant date fair value of options and warrants vested during the three month periods ended August 31, 2011 and 2010 was approximately $190,000 and $233,000, respectively. The weighted average grant date fair value of options and warrants granted during the three month periods ended August 31, 2011 and 2010 was $1.25 and $0, respectively. As of August 31, 2011 there was approximately $1,568,000 of unrecognized compensation costs related to share-based payments for unvested options, which is expected to be recognized over a weighted average period of 1.91 years.

 

The following table represents stock option and warrant activity as of and for the three months ended August 31, 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

      200,000       $ 2.00         

Exercised

      —              

Forfeited/expired/cancelled

      83,000       $ 2.26         

Options and warrants outstanding - August 31, 2011

      7,590,576       $ 1.34         3.67       $ 4,223,613   

Outstanding exercisable - August 31, 2011

      6,047,520       $ 1.25         3.34       $ 3,906,029