Stock Based Compensation

6 Months Ended

Feb. 28, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Stock Based Compensation 

Year 2011 Stock Incentive Plan

The purpose of the Year 2011 Stock Incentive Plan (“2011 Plan”) is to strengthen the Company by providing an incentive to its employees, officers, consultants and directors and to encourage them to devote their abilities and industry to the success of the Company’s business enterprise. It is intended that this purpose be achieved by extending to employees, officers, consultants and directors of the Company and its subsidiaries an added long-term incentive for high levels of performance and unusual efforts through the grant of incentive stock options, non-qualified stock options, stock appreciation rights, dividend equivalent rights, performance awards and restricted stock. The Company has reserved 15,000,000 shares of common stock for issuance under the 2011 Plan.

As of February 28, 2015, there remain 250,000 shares to be issued upon exercise of outstanding options, and 14,750,000 shares which can be issued under the 2011 Plan after giving effect to shares issued and canceled.

 

2000 Incentive Plan

The Company's 2000 Incentive Plan ("2000 Plan") provides for options and other stock-based awards that may be granted to eligible employees, officers, consultants and non-employee directors of the Company or its subsidiaries. The Company had reserved 5,000,000 shares of common stock for future issuance under the 2000 Plan. The 2000 Plan does not have a fixed termination date, provided that no incentive stock option can be granted subsequent to August 29, 2011. As of February 28, 2015, there remain 534,000 shares to be issued upon exercise of outstanding options, and no new stock options awards will be issued under the 2000 Plan.

 

The following table summarizes the stock option activities for the six months ended February 28, 2015 (share amounts in thousands):

	Shares		Weighted Average Option Exercise  Price Per Share
Outstanding, August 31, 2014		995	$	2.18
Granted		—		—
Exercised		—		—
Expired or canceled		(211)		4.27
Outstanding, February 28, 2015		784		1.62

For the six months ended February 28, 2015 and 2014, there were no stock options exercised. The aggregate intrinsic value of the stock options outstanding as of February 28, 2015 and 2014 is $-0-, since the market price is lower than the exercise price.

The following summarizes information related to stock options outstanding as of February 28, 2015, and related weighted average price and life information:

	Options Outstanding				Options Exercisable
Exercise Prices	Number of  Shares		Weighted Average Remaining Contractual Life (Years)		Number of Shares
	(Share Amounts In Thousands)
$1.10		250		6.9		188
$1.86		534		6.4		401
Total		784		6.5		589

For the three months ended February 28, 2015 and 2014, stock-based compensation expense associated with the Company’s stock options was $49,341 in each period. For the six months ended February 28, 2015 and 2014, stock-based compensation expense associated with the Company’s stock options was $98,682 in each period. The total unrecognized compensation expense for outstanding stock options as of February 28, 2015 was $82,000, and will be recognized, in general, over six months.