Share Based Payments (Tables)

3 Months Ended

May 31, 2013

Assumptions used to Calculate Fair Value of Options on Date of Grant

The following assumptions were used to calculate the fair value of the Company’s options on the date of grant during the three months ended May 31, 2012 and 2013: 

	Three Months Ended May 31,
	2012	2013
Risk-Free Interest Rate:	0.7%	0.6%
Expected Dividend Yield:	0%	0%
Expected Life (Years):	4.2	4.3
Expected Volatility:	129.5% – 131.4%	115.9%

Summary of Stock Options Outstanding and Activity

The following table presents a summary of the Company’s stock options outstanding at May 31, 2013, and stock option activity during the three months ended May 31, 2013 (“Price” reflects the weighted average exercise price per share):

					Weighted Average		Aggregate
					Remaining		Intrinsic
	Options		Price		Contractual Term		Value
Outstanding, beginning of period		7,132,459	$	4.31
Granted		330,000		1.64
Exercised (1)		86,250		0.65
Forfeited		—		—
Expired		549,926		11.08
Outstanding, end of period		6,826,283		3.68		6.6	$	4,255
Exercisable, end of period		3,728,179		5.94		4.8	$	2,000

(1) The Company did not record an income tax benefit related to option exercises in the three months ended May 31, 2012 and 2013.

Summary of Nonvested Options and Changes

A summary of the Company’s nonvested options at May 31, 2013, and changes during the three months ended May 31, 2013, is presented below:

			Weighted Average
			Grant Date
	Options		Fair Value
Nonvested, beginning of period		3,188,104	$	0.76
Granted		330,000		1.27
Vested		420,000		1.00
Forfeited		—		—
Nonvested, end of period		3,098,104		0.78

Summary of Restricted Stock Grants Outstanding and Activity

The following table presents a summary of the Company’s restricted stock grants outstanding at May 31, 2013, and restricted stock activity during the three months ended May 31, 2013 (“Price” reflects the weighted average share price at the date of grant):

	Awards		Price
Grants outstanding, beginning of period		537,405	$	1.72
Granted		787,346		1.58
Vested (restriction lapsed)		277,346		1.46
Forfeited		181		1.73
Grants outstanding, end of period		1,047,224		1.68

Stock-Based Compensation Expense and Related Tax Benefits Recognized

The following table summarizes stock-based compensation expense and related tax benefits recognized by the Company in the three months ended May 31, 2012 and 2013:

	Three months ended May 31,
	2012		2013
Station operating expenses	$	151	$	253
Corporate expenses		238		410
Stock-based compensation expense included in operating expenses		389		663
Tax benefit		—		—
Recognized stock-based compensation expense, net of tax	$	389	$	663