Stock-Based Compensation Plans

3 Months Ended

Feb. 29, 2012

Notes to Financial Statements

Stock-Based Compensation Plans

Note 7 – 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 three-month periods ended February 29, 2012 and February 28, 2011, we recorded approximately $52,000 and $24,000, respectively, in stock-based compensation expense. As of February 29, 2012, there was approximately $131,000 of unrecognized employee stock-compensation expense for previously granted unvested options that will be recognized over a three-year period.