Stock-Based Compensation Plans

9 Months Ended

Aug. 31, 2011

Notes to Financial Statements

Stock-Based Compensation Plans

We issue stock options to our employees, consultants and outside directors pursuant to stockholder-approved and non-approved stock option programs and record the applicable expense in accordance with the authoritative guidance of the Financial Accounting Standards Board. This expense is a non-cash expense and it derives from the issuance of stock options, stock purchase warrants and restricted stock (see Note 13). For the nine-month periods ended August 31, 2011 and 2010, we recorded approximately $145,000 and $362,000, respectively, in stock-based compensation expense. For the three-month periods ended August 31, 2011 and 2010, we recorded approximately $49,000 and $83,000, respectively, in stock-based compensation expense. For the nine-month periods ended August 31, 2011 and 2010, we recorded approximately $56,000 and $264,000 of non-cash compensation expense related to stock-based grants made to consultants. For the three-month periods ended August 31, 2011 and 2010, we recorded approximately $9,000 and $52,000 non-cash compensation expense related to stock-based grants to consultants. As of August 31, 2011, there was approximately $127,000 of unrecognized employee stock-compensation expense for previously-granted unvested options that will be recognized over a three-year period.