STOCK-BASED COMPENSATION

12 Months Ended

May 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

9. STOCK-BASED COMPENSATION

The Company accounted for its stock based compensation in accordance with the fair value recognition provisions of FASB ASC Topic 718, Compensation – Stock Compensation (“ASC 718”).

A. Options

Compensation based stock option and warrant activity for warrants and qualified and unqualified stock options are summarized as follows:

			Weighted
			Average
	Shares		Exercise Price
Outstanding at May 31, 2006		6,886,652	$	0.64
Granted		5,824,000		0.49
Exercised		(175,604)		0.01
Expired or cancelled		—		—
Outstanding at May 31, 2007		12,535,048		0.58
Granted		5,365,197		0.21
Exercised		—
Expired or cancelled		(2,927,864)		0.22
Outstanding at May 31, 2008		14,972,381		0.51
Granted		14,427,600		0.15 - 0.25
Exercised		—
Expired or cancelled		(9,438,184)		0.25 -1.20
Outstanding at May 31, 2009		19,961,797		0.27
Granted		—
Exercised		(2,228,364)		0.01
Expired or cancelled		(583,197)		0.25
Outstanding at May 31, 2010		17,150,236		0.3
Granted		—
Exercised		(2,227,864)		0.01
Expired or cancelled		(11,072,372)		0.30
Outstanding at May 31, 2011		3,850,000		0.65
Granted		—
Exercised		—
Expired or cancelled		(240,000)		0.83
Outstanding at May 31, 2012		3,610,000		0.55
Granted		—
Exercised		—
Expired or cancelled		(650,000)		0.75
Outstanding at May 31, 2013		2,960,000	$	0.29

The following table summarizes information about options outstanding and exercisable at May 31, 2013:

	Options Outstanding and exercisable
	Number Outstanding		Weighted- Average Remaining Life In Years		Weighted- Average Exercise Price		Number Exercisable
Range of exercise prices:
$0.00 - $0.25		1,800,000		2.34		0.24		1,800,000
$0.26 - $1.00		1,160,000		1.32	$	0.36		1,160,000
		2,960,000		1.94	$	0.29		2,960,000

The compensation expense attributed to the issuance of the options and warrants will be recognized as they vest / earned. These stock options and warrants are exercisable for three to ten years from the grant date.

The employee stock option plan stock options are exercisable for ten years from the grant date and vest over various terms from the grant date to three years.

B. Warrants

The issuance of warrants attributed to debt issuances are summarized as follows:

			Weighted
			Average
	Shares		Exercise Price
Outstanding at May 31, 2006		4,392,874	$	0.84
Granted		4,655,366		0.93
Exercised		0		—
Expired or cancelled		0		—
Outstanding at May 31, 2007		9,048,240		0.88
Granted		1,821,676		0.85
Exercised		0		—
Expired or cancelled		-825,000		0.67
Outstanding at May 31, 2008		10,044,916		0.84
Granted		4,022,225		0.25
Exercised		0		—
Expired or cancelled		-2,332,137		0.85
Outstanding at May 31, 2009		11,735,004		0.63
Granted		0		—
Exercised		0		—
Expired or cancelled		0		—
Outstanding at May 31, 2010		11,735,004		0.63
Granted		0		—
Exercised		0		—
Expired or cancelled		-6,499,057		0.70
Outstanding at May 31, 2011		5,235,945		0.50
Granted		660,000		0.035
Exercised		0		—
Expired or cancelled		0		—
Outstanding at May 31, 2012		5,895,945		0.50
Granted		0		—
Exercised		0		—
Expired or cancelled		-3,545,865		0.70
Outstanding at May 31, 2013		2,350,080	$	0.19

The following table summarizes information about warrants outstanding and exercisable at May 31, 2013:

	Outstanding and exercisable
	Number Outstanding		Weighted- average remaining life  in years		Weighted- Average Exercise Price		Number Exercisable
Range of exercise prices:
$.01 to $.25		1,690,080		0.33	$	0.250		1,690,080
$.26 - $.99		660,000		1.00	$	0.035		660,000
		2,350,080						2,350,080

Interest expense attributed to the aforementioned warrants is being amortized over the ratable term of each respective debt arrangement.

The intrinsic value of the aforementioned options and warrants as of May 31, 2013 and 2012 was $9,900 and $0, respectively.