Stock-Based Compensation Plans

6 Months Ended

Feb. 29, 2012

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

4. STOCK-BASED COMPENSATION PLANS

We have several stock-based compensation plans, which are more fully described in Note 9 in our fiscal year 2011 annual report on Form 10-K. Compensation expense related to stock-based plans recognized for the three months ended February 29, 2012 and February 28, 2011 was $70,000 and $105,000 respectively. Compensation expense related to stock-based plans recognized for the six months ended February 29, 2012 and February 28, 2011 was $160,000 and $200,000 respectively.

Stock Options – There were stock option grants for 2,000 shares in the current year. During the six months ended February 29, 2012, options to purchase 121,501 shares of stock were cancelled due to employee terminations and option period expirations. The summary of stock option activity for the six months ended February 29, 2012 follows:

	Six Months Ended February 29, 2012
	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ($000)
Outstanding at September 1, 2011		701,919		$	2.82
Granted		2,000		$	0.99
Exercised		-0-		$	0.00
Expired/forfeited		(121,501	)	$	1.85
Outstanding at February 29, 2012		582,418		$	3.02		3.07	$	-0-
Exercisable at February 29, 2012		319,166		$	4.66		1.73	$	-0-

The aggregate intrinsic values in the table above are calculated using the market price on February 29, 2012 of $0.99.

Restricted Stock Units - We also use restricted stock units, or RSUs, as a stock compensation vehicle. Most of our stock compensation expense in the current year relates to RSUs. The following table sets forth the status of our Restricted Stock Unit compensation activity for the six months ended February 29, 2012:

Nonvested Shares	Shares			Weighted- Average Grant- Date Fair Value
Nonvested at August 31, 2011		677,003		$	1.00
Granted		60,000		$	1.00
Vested and issued		(425,826	)	$	0.80
Cancelled		(29,500	)	$	0.98
Nonvested at February 29, 2012		281,677		$	1.30