On August 5, 2024, the Company entered into a securities purchase agreement with certain investors, including Steven L. Craig, an existing director of the Company (the “Investors”), pursuant to which, among other things, the Investors agreed to subscribe for and purchase, and the Company agreed to issue and sell to the Investors, an aggregate of 1,250,000 of shares of the Company’s common stock at a price per share equal to $1.75, for total proceeds of approximately $2.2 million. On September 5, 2024, the shares were subsequently registered for resale on a form S-1 that was declared effective by the SEC on October 9, 2024.

Under the Company’s 2007 Equity Incentive Plan (as amended and restated) (the “2007 Plan”), the Company may authorize and grant stock awards to employees, non-employee directors and certain other eligible participants, including stock options, restricted stock and restricted stock units. Effective June 2024, the Board authorized 600,000 new shares, along with 300,851 unused and available shares and 131,089 shares granted and outstanding from the 2007 Equity Incentive Plan, to form the 2024 Equity Incentive Plan with a total of 1,031,940 shares.

The Company recognized $0.2 million and $0.2 million of stock-based compensation expense during the three and nine months ended November 30, 2024 compared with $0.2 million and $0.5 million during the three and nine months ended November 30, 2023, respectively. Compensation costs related to stock-based compensation are generally amortized over the vesting period of the stock awards.

The following table summarizes non-vested restricted stock unit transactions for common stock during the nine months ended November 30, 2024:


	Nine Months Ended November 30,
	2024
Outstanding non-vested restricted stock units at beginning of year:		160,958
Granted		354,613
Vested		(99,810	)
Cancelled/forfeited		(252,023	)
Outstanding non-vested restricted stock units as of November 30:		163,738

Weighted average grant date fair value	$	2.94
Weighted average remaining vesting period (in years)		2.37

Total unrecognized stock-based compensation expense for non-vested restricted stock units was approximately $0.5 million, and expected to be recognized over the next 2.4 years. The following table summarizes stock option activity during the nine months ended November 30, 2024:


	Nine Months Ended November 30,
	2024
Outstanding stock options as of February 29:		17,698
Granted		-
Exercised		-
Cancelled/forfeited		(17,698	)
Outstanding stock options as of November 30:		-

Weighted average exercise price	$	-
Weighted average remaining contractual term (in years)		-

During the nine months ended November 30, 2024, the Company granted 354,613 restricted stock units to various executives with a grant-date fair value of $1.0 million. During the nine months ended November 30, 2023, the Company granted 131,216 restricted stock units to various executives with a grant-date fair value of $0.8 million.