Stock Options and Stock-Based Compensation

9 Months Ended

Feb. 28, 2021

Share-based Payment Arrangement [Abstract]

Stock Options and Stock-Based Compensation

Stock-based compensation includes expense charges for all stock-based awards to employees and directors granted under the Company's stock option plan. Stock-based compensation recognized during the period is based on the portion of the grant date fair value of the stock-based award that will vest during the period, adjusted for expected forfeitures. Compensation cost for all stock-based awards is recognized using the straight-line method.

Stock Options

At February 28, 2021, the Company had outstanding stock options to purchase 22,500 shares of Common Stock all of which are vested and exercisable with a weighted average exercise price of $1.70. As all options outstanding as of February 28, 2021 were fully vested; the Company estimates that $0 will be recorded as additional stock-based compensation expense related to stock options during the year ending May 31, 2021.

Outstanding Options						Exercisable Options
Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (yrs)		Number of Shares		Weighted Average Exercise Price
	22,500	$	1.70		6.10		22,500	$	1.70

No stock options were granted, exercised, canceled or expired under the Company's stock-based compensation plans during the nine months ended February 28, 2021.

Restricted Stock Units

Service-based and market-based restricted stock units are granted to key employees and members of the Company's Board of Directors. Service-based restricted stock units generally fully vest on the first anniversary date of the award. Market-based restricted stock units are contingent on continued service and vest based on the 15-day average closing price of the Company's Common Stock equal or exceeding certain targets established by the Compensation Committee of the Board of Directors. No market-based restricted stock units were granted in the nine months ended February 28, 2021.

During the nine months ended February 28, 2021, two tranches of the market-based restricted stock units granted in Fiscal 2020 and Fiscal 2019 vested.

During the nine months ended February 28, 2021, 62,881 service-based restricted stock units were granted.

Restricted stock unit activity under the Company's stock-based compensation plans during the nine months ended February 28, 2021 is summarized as follows:

	Number of Units			Weighted Average Price at Grant Date		Aggregate Intrinsic Value
Non-vested restricted stock units - May 31, 2020		55,147		$	3.28	$	180,882
Restricted stock units granted		62,881			4.62		290,529
Restricted stock units vested		(83,072	)		3.78		(313,976	)
Non-vested restricted stock units - February 28, 2021		34,956		$	4.50	$	157,435

During the nine months ended February 28, 2021, total restricted stock unit compensation expense recognized was $163,493 and has been recorded as general, administration and sales expense in the Consolidated Statements of Operations and Comprehensive Loss. Stock compensation expense related to non-vested restricted stock units with a time vesting condition was $50,048.