Note 10 - Stockholders' Equity

3 Months Ended

May 31, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE

10

- STOCKHOLDERS' EQUITY

Cash Dividend

The Company paid a quarterly cash dividend of

$0.12

per share of common stock on

March 13, 2020

to stockholders of record on

February 28, 2020.

As previously announced on

May 11, 2020,

the Board of Directors suspended the Company's fiscal year

21

first

quarter cash dividend payment to preserve cash and provide additional flexibility in the current environment as a result of the economic impact of COVID-

19.

Furthermore, the Board of Directors has suspended future quarterly dividends until the significant uncertainty of the current public health crisis and global economic climate has passed, and the Board of Directors determines that resumption of dividend payments is in the best interest of the Company and its stockholders.

Future declarations of dividends will depend on, among other things, the Company's results of operations, financial condition, capital requirements, and on such other factors as the Company's Board of Directors

may

in its discretion consider relevant and in the best long-term interest of the Company's stockholders.

Stock Repurchases

On

July 15, 2014,

the Company publicly announced a plan to repurchase up to

$3.0

million of its common stock in the open market or in private transactions, whenever deemed appropriate by management. As of

May 31, 2021,

approximately

$638,000

remains available under the repurchase plan for further stock repurchases.

Warrants

In consideration of Edible entering into the exclusive supplier agreement and the performance of its obligations therein, on

December 20, 2019,

the Company issued Edible a warrant (the “Warrant”) to purchase up to

960,677

shares of the Company's common stock (the “Warrant Shares”) at an exercise price of

$8.76

per share. The Warrant Shares vest in annual tranches in varying amounts following each contract year under the exclusive supplier agreement, subject to, and only upon, Edible's achievement of certain revenue thresholds on an annual or cumulative

five

-year basis in connection with its performance under the exclusive supplier agreement. The Warrant expires

six

months after the final and conclusive determination of revenue thresholds for the

fifth

contract year and the cumulative revenue determination in accordance with the terms of the Warrant.

The Company determined that the grant date fair value of the warrants was de minimis and did

not

record any amount in consideration of the warrants. The Company utilized a Monte Carlo model for purposes of determining the grant date fair value.

Stock-Based Compensation

Under the Company's

2007

Equity Incentive Plan (as amended and restated) (the

“2007

Plan”), the Company

may

authorize and grant stock awards to employees, non-employee directors and certain other eligible participants, including stock options, restricted stock and restricted stock units.

The Company recognized

$146,157

of stock-based compensation expense during the

three

months ended

May 31, 2021

compared with

$143,718

during the

three

months ended

May 31, 2020.

Compensation costs related to stock-based compensation are generally amortized over the vesting period of the stock awards.

The following table summarizes non-vested restricted stock unit transactions for common stock during the

three

months ended

May 31, 2021

and

2020:

	Three Months Ended
	May 31,
	2021			2020
Outstanding non-vested restricted stock units as of February 28 or 29:		209,450			265,555
Granted		-			-
Vested		(37,702	)		(41,131	)
Cancelled/forfeited		(900	)		-
Outstanding non-vested restricted stock units as of May 31:		170,848			224,424
Weighted average grant date fair value	$	9.40		$	9.39
Weighted average remaining vesting period (in years)		3.41			4.33

The Company issued

7,000

unrestricted shares of stock to non-employee directors during the

three

months ended

May 31, 2021

compared to

no

shares issued during the

three

months ended

May 31, 2020.

In connection with these non-employee director stock issuances, the Company recognized

$34,650

and

$0

of stock-based compensation expense during the

three

months ended

May 31, 2021

and

2020,

respectively.

During the

three

months ended

May 31, 2021,

the Company recognized

$111,507

of stock-based compensation expense related to non-vested, non-forfeited restricted stock unit grants compared to

$143,718

during the

three

months ended

May 31, 2020.

The restricted stock units generally vest in equal annual installments over a period of

five

to

six

years. Total unrecognized stock-based compensation expense of non-vested, non-forfeited restricted stock units, as of

May 31, 2021,

was

$1,494,326,

which is expected to be recognized over the weighted average period of

3.41

years.

The Company has

no

outstanding stock options as of

May 31, 2021.