STOCK OPTIONS AND STOCK-BASED COMPENSATION

9 Months Ended

Feb. 28, 2022

Share-based Payment Arrangement [Abstract]

STOCK OPTIONS AND STOCK-BASED COMPENSATION

NOTE 3 - 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 forfeitures as they occur. Compensation cost for all stock-based awards is recognized using the straight-line method.

Stock Options

As of February 28, 2022, 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 stock options outstanding as of February 28, 2022 were fully vested, the Company recorded no additional stock-based compensation expense related to stock options during the quarter ending February 28, 2022.

Outstanding Options				Exercisable Options
Number of Shares		Weighted- Average Exercise Price	Weighted-Average Remaining Contractual Life (years)	Number of Shares		Weighted- Average Exercise Price
22,500	$	1.70	5.1	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, 2022.

Restricted Stock Units

Service-based and market-based restricted stock units (“RSUs”) are granted to key employees, members of the Company's Board of Directors and others. Service-based RSUs generally fully vest on the first anniversary date of the award. Market-based RSUs 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 RSUs were granted in the nine months ended February 28, 2022.

During the nine months ended February 28, 2022, 12,332 service-based RSUs were granted.

RSU activity under the Company's stock-based compensation plans during the nine months ended February 28, 2022 is summarized as follows:

	Number of Units			Weighted-Average Price at Grant Date		Aggregate Intrinsic Value
Non-vested RSUs - May 31, 2021		34,237		$	4.71	$	161,400
RSUs granted		12,332		$	4.41		54,358
RSUs forfeited		(2,058	)	$	4.86		(10,000	)
RSUs vested		(28,376	)	$	4.26		(120,913	)
Non-vested RSUs – February 28, 2022		16,135		$	5.26	$	84,845

During the three and nine months ended February 28, 2022, total restricted stock-compensation expense recognized was $25,647 and $95,016, respectively, and has been recorded as selling, general and administrative expense in the consolidated statements of operations. Remaining stock-compensation expense to be recognized in future periods for non-vested RSUs with a time-vesting condition is $30,424.