SHAREHOLDERS' EQUITY

12 Months Ended

May 31, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

6.    SHAREHOLDERS' EQUITY 

STOCK OPTION AND RESTRICTED STOCK PLANS 

In August 1999, the Company adopted a stock option and restricted stock plan (the "1999 Plan") which provides that non-qualified options and incentive stock options and restricted stock covering an aggregate of 1,000,000 of the Company's unissued common stock may be granted to affiliates, employees or consultants of the Company. As of January 1, of each calendar year, commencing January 1, 2000, this amount is subject to automatic annual increases equal to the lesser of 1.5% of the total number of outstanding common shares, assuming conversion of convertible securities, or 500,000. The 1999 plan expired in November 2009. Options granted under the 1999 Plan were granted at prices not less than 80% of the then fair market value of the common stock and expired not more than 10 years after the date of grant. 

In August 2010, the Company adopted a stock option and restricted stock plan (the "2010 Plan") which provides that non-qualified options and incentive stock options and restricted stock covering an aggregate of 850,000 of the Company's unissued common stock may be granted to affiliates, employees or consultants of the Company. This plan was approved by shareholders in December 2010.  The 2010 Plan expires in December 2020. Options granted under the 2010 Plan will be granted at prices not less than 80% of the then fair market value of the common stock and will expire not more than 10 years after the date of grant. 

Activity as to stock options outstanding are as follows:  

	NUMBER OF STOCK OPTIONS	PRICE RANGE  PER SHARE	WEIGHTED AVERAGE EXERCISE PRICE
Options outstanding at May 31, 2012	1,004,500	$0.30 - $0.75	$0.46
Options granted	30,000	$0.65 - $0.68	$0.67
Options exercised	(122,375)	$0.30 - $0.73	$0.42
Options canceled or expired	(65,625)	$0.38 - $0.73	$0.52
Options outstanding at May 31, 2013	846,500	$0.38 - $0.75	$0.47
Options granted	178,000	$0.71-$0.84	$0.75
Options exercised	(69,000)	$0.38-$0.60	$0.51
Options canceled or expired	(95,000)	$0.43-$0.84	$0.59
Options outstanding at May 31, 2014	860,500	$0.38-$0.84	$0.51

The weighted average fair value of options granted during 2014 and 2013 was $0.75 and $0.67, respectively. The aggregate intrinsic value of options exercised during 2014 and 2013 was approximately $20,000 and $70,300, respectively. The aggregate intrinsic value of options outstanding at May 31, 2014 and 2013 was approximately $325,000 and $353,000, respectively. The aggregate intrinsic value of options vested and exercisable at May 31, 2014 and 2013 was approximately $189,000 and $162,000, respectively. 

Activity as to non-vested stock options are as follows:

		STOCK OPTIONS WEIGHTED AVERAGE AVERAGE GRANT DATE FAIR VALUE
	NUMBER OF SHARES
Nonvested shares at May 31, 2013	408,250	$	0.42
Granted	178,000	$	0.75
Vested/Issued	( 162,250)	$	0.42
Forfeited	(14,000)	$	0.43
Nonvested shares at May 31, 2014	410,000	$	0.56

At May 31, 2014, total compensation cost related to non-vested stock option awards not yet recognized totaled $127,723. The weighted-average period over which this amount is expected to be recognized is 2.71 years. The weighted average remaining contractual term of options that were exercisable at May 31, 2014 was 2.61 years. 

The following summarizes information about all of the Company's stock options outstanding at May 31, 2014. These options are comprised of those granted under the 1999 and 2010 plans. 

RANGE OF EXERCISE PRICES	NUMBER OUTSTANDING 5/31/2014	WEIGHTED AVERAGE REMAINING CONTRACTUAL  LIFE IN YEARS	WEIGHTED AVERAGE EXERCISE PRICE	NUMBER EXERCISABLE AT MAY 31, 2014	WEIGHTED AVERAGE  EXERCISE PRICE
$ 0.30 - $ 0.50	602,500	2.30	$ 0.41	371,500	$ 0.41
$ 0.51 - $ 0.75	211,000	4.58	$ 0.72	77,500	$ 0.75
$ 0.83 - $ 0.84	47,000	3.57	$0.84	--	--

STOCK ACTIVITY 

In October 2012, the Board of Directors granted stock options for 30,000 options to employees of the Company. The options vest one quarter after one year and then will vest one quarter per year thereafter. The options are at the exercise price of $0.65 and $0.68 per share and expire in five years.

During the fiscal year ended May 31, 2013, options to purchase 122,375 shares of common stock were exercised at prices ranging from $0.30 to $0.73. Total proceeds to the Company were $51,514.

During the fiscal year ended May 31, 2013, the Company sold 200,000 shares of its restricted common stock at a price of $1.25 per share to an investor for proceeds of $250,000. The investor agreed to purchase an additional 200,000 shares of common stock at $1.25 at a later date.

During the fiscal year ended May 31, 2014, options to purchase 69,000 shares of common stock were exercised at prices ranging from $0.38 to $0.60.  Total proceeds to the Company were $35,275. 

During the fiscal year ended May 31, 2014, the Company sold 200,000 shares of its common stock at a price of $1.25 per share to the above mentioned investor for proceeds of $250,000.