RELATED PARTY TRANSACTIONS

12 Months Ended

May 31, 2012

RELATED PARTY TRANSACTIONS [Abstract]

RELATED PARTY TRANSACTIONS

10. RELATED PARTY TRANSACTIONS

During the year ended May 31, 2012, the Company issued to its directors a total of 1,750,000 shares of common stock, valued at $175,000, and 2,500,000 stock options, valued at $419,999. Each director received 250,000 shares of common stock, except that the Chairman, who received 500,000 shares of common stock. In addition, 1,000,000 fully vested stock options were issued to each of two newly appointed directors (2,000,000 in total) and 500,000 fully vested stock options were issued to an officer who is also a director. The Company further issued 3,000,000 stock options, valued at $480,000, to three newly appointed officers of the Company, 2,500,000 of these options vested immediately, the remaining 500,000 options will vest in 2013.

During the year ended May 31, 2011, nine directors were each awarded 1 million options to purchase Company common stock; one of these awards was subsequently cancelled. These options were valued at $580,000. The Company also issued 1,500,000 shares of its common stock valued at $300,000. Each of the then 6 directors received 250,000 shares of our common stock.