SHAREHOLDERS' EQUITY

12 Months Ended

May 31, 2016

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

5.    SHAREHOLDERS' EQUITY

STOCK OPTION AND RESTRICTED STOCK PLANS

In August 1999, the Company adopted a stock option and restricted stock plan (the "1999 Plan") which provides that non-qualified options and incentive stock options and restricted stock covering an aggregate of 1,000,000 shares of the Company's unissued common stock may be granted to affiliates, employees or consultants of the Company. As of January 1, of each calendar year, commencing January 1, 2000, this amount is subject to automatic annual increases equal to the lesser of 1.5% of the total number of outstanding common shares, assuming conversion of convertible securities, or 500,000 shares. The 1999 plan expired in November 2009. Options granted under the 1999 Plan were granted at prices not less than 80% of the then fair market value of the common stock and expired not more than 10 years after the date of grant.

In August 2010, the Company adopted a stock option and restricted stock plan (the "2010 Plan") which provides that non-qualified options and incentive stock options and restricted stock covering an aggregate of 850,000 shares of the Company's unissued common stock may be granted to affiliates, employees or consultants of the Company. This plan was approved by shareholders in December 2010.  The 2010 Plan expires in December 2020. Options granted under the 2010 Plan will be granted at prices not less than 80% of the then fair market value of the common stock and will expire not more than 10 years after the date of grant.

In December 2014, the Company adopted a stock option and restricted stock plan (the "2014 Plan") which provides that non-qualified options and incentive stock options and restricted stock covering an aggregate of 850,000 shares of the Company's unissued common stock may be granted to affiliates, employees or consultants of the Company. This plan was approved by shareholders in December 2014.  The 2014 Plan expires in December 2024. Options granted under the 2014 Plan will be granted at prices not less than 80% of the then fair market value of the common stock and will expire not more than 10 years after the date of grant.

Activity as to stock options outstanding are as follows:

	NUMBER OF STOCK OPTIONS	PRICE RANGE PER SHARE	WEIGHTED AVERAGE EXERCISE PRICE
Options outstanding at May 31, 2014	860,500	$0.38-$0.84	$0.51
Options granted	356,000	$0.82-$0.85	$0.82
Options exercised	(23,000)	$0.38-$0.71	$0.42
Options canceled or expired	(45,500)	$0.43-$0.85	$0.72
Options outstanding at May 31, 2015	1,148,000	$0.38-$0.85	$0.60
Options granted	345,000	$1.04-$1.20	$1.17
Options exercised	(269,625)	$0.38-$0.84	$0.41
Options canceled or expired	(24,375)	$0.43-$1.04	$0.74
Options outstanding at May 31, 2016	1,199,000	$0.43-$1.20	$0.81

The weighted average fair value of options granted during 2016 and 2015 was $1.17 and $0.82, respectively. The aggregate intrinsic value of options exercised during 2016 and 2015 was approximately $256,000 and $11,000 respectively. The aggregate intrinsic value of options outstanding at May 31, 2016 and 2015 was approximately $952,000 and $376,000, respectively. The aggregate intrinsic value of options vested and exercisable at May 31, 2016 and 2015 was approximately $542,000 and $284,000, respectively.

Activity as to non-vested stock options is as follows:  

		STOCK OPTIONS WEIGHTED AVERAGE AVERAGE GRANT DATE FAIR VALUE
	NUMBER OF SHARES
Nonvested shares at May 31,2015	527,125	$	0.75
Granted	345,000	$	1.17
Vested/Issued	(179,250)	$	0.66
Forfeited	(19,625)	$	0.77
Nonvested shares at May 31,2016	673,250	$	0.99

At May 31, 2016, total compensation cost related to non-vested stock option awards not yet recognized totaled approximately $63,000. The weighted-average period over which this amount is expected to be recognized is 3.18 years. The weighted average remaining contractual term of options that were exercisable at May 31, 2016 was 2.27 years.

The following summarizes information about all of the Company's stock options outstanding at May 31, 2016. These options are comprised of those granted under the 1999, 2010 and 2014 plans.

		WEIGHTED  AVERAGE  REMAINING  CONTRACTUAL LIFE IN YEARS
			WEIGHTED  AVERAGE EXERCISE  PRICE	NUMBER  EXERCISABLE AT MAY 31, 2016
	NUMBER  OUTSTANDING 05/31/2016				WEIGHTED  AVERAGE EXERCISE PRICE
RANGE OF EXERCISE PRICES
$0.43	311,750	0.61	$0.43	311,750	$0.43
$ 0.71 - $ 0.85	545,250	4.23	$0.79	214,000	$0.76
$ 1.04 - $ 1.20	342,000	8.59	$1.17	--	--

STOCK ACTIVITY

During the fiscal year ended May 31, 2015, options to purchase 23,000 shares of common stock were exercised at prices ranging from $0.38 to $0.71.  Total proceeds to the Company were $9,560.

During the fiscal year ended May 31, 2016, options to purchase 269,625 shares of common stock were exercised at prices ranging from $0.38 to $0.84.  Total proceeds to the Company were $109,936.

During the fiscal year ended May 31, 2016, the Company sold 333,334 shares of its common stock at a price of $3.00 per share for net proceeds of $995,978.