Stock Based Compensation

3 Months Ended

Nov. 30, 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 November 30, 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 November 30, 2015, there remain 771,654 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 three months ended November 30, 2015 (share amounts in thousands):

	Shares		Weighted Average Option Exercise Price Per Share
Outstanding, August 31, 2015		772	$	1.61
Granted		—		—
Exercised		—		—
Expired or canceled		—		—
Outstanding, November 30, 2015		772		1.61

For the three months ended November 30, 2015 and 2014, there were no stock options exercised. The aggregate intrinsic value of the stock options outstanding as of November 30, 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 November 30, 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		6.1		188
$	1.86		522		5.6		522
Total			772		5.8		710

For the three months ended November 30, 2015 and 2014, stock-based compensation expense associated with the Company’s stock options was $8,311 and $49,341, respectively. The total unrecognized compensation expense for outstanding stock options as of November 30, 2015 was $2,770, and will be recognized in one month.