STOCK OPTIONS AND STOCK-BASED COMPENSATION

12 Months Ended

May 31, 2022

Share-Based Payment Arrangement [Abstract]

STOCK OPTIONS AND STOCK-BASED COMPENSATION

NOTE 10 – STOCK OPTIONS AND STOCK-BASED COMPENSATION

Stock-based compensation includes expense charges for all stock-based awards to employees and directors granted under the Company's stock option plan. Stock-based compensation recognized during the period is based on the portion of the grant date fair value of the stock-based award that will vest during the period, adjusted for expected forfeitures. Compensation cost for all stock-based awards is recognized using the straight-line method.

There were no options granted during the fiscal years ended May 31, 2022 and 2021 and the Company had outstanding stock options to purchase 22,500 shares of Common Stock as of May 31, 2022 and 2021. All outstanding options are fully vested and exercisable with a weighted-average exercise price of $1.70. As all options outstanding as of May 31, 2022 and 2021 were fully vested, the Company did not record any additional stock-based compensation expense during the fiscal years ended May 31, 2022 and 2021.

Options granted, exercised, canceled and expired under the Company's stock-based comp ensation plans during the fiscal years ended May 31, 2022 and 2021 are summarized as follows:

	Number of   Shares		Weighted- Average  Exercise Price		Weighted- Average   Remaining   Contractual  Term (Years)		Aggregate  Intrinsic   Value
Options outstanding and exercisable - May 31, 2020		22,500	$	1.70		6.9	$	38,250
Options granted		—		—
Options exercised		—	$	—
Options forfeited/canceled		—	$	—
Options outstanding and exercisable - May 31, 2021		22,500	$	1.70		5.8	$	38,250
Options granted		—		—
Options exercised		—	$	—
Options forfeited/canceled		—	$	—
Options outstanding and exercisable - May 31, 2022		22,500	$	1.70		4.8	$	38,250

Restricted Stock Units

Service-based RSUs are granted to key employees and members of the Company's Board of Directors. Service-based RSUs generally fully vest on the first anniversary date of the award.

During the fiscal year ended May 31, 2021, there were 76,315 service-based RSUs granted. The total fair value of the RSUs at grant date was $372,717. Of the service-based RSUs outstanding, 97,225 units vested, and no units canceled.

During the fiscal year ended May 31, 2022, there were 19,286 service-based RSUs granted. The total fair value of the RSUs at grant date was $86,463. Of the service-based RSUs outstanding, 35,330 units vested, and 7,860 units canceled. RSU activity under the Company's stock-based compensation plans during the fiscal year ended May 31, 2022 and 2021 are summarized as follows:

	Number of  Units			Weighted-  Average Price at Grant Date		Aggregate Intrinsic  Value
Non-vested restricted stock units – May 31, 2020		55,147		$	3.28	$	180,882
Restricted stock units granted		76,315			4.88		372,717
Restricted stock units vested		(97,225	)		4.03		(392,199	)
Non-vested restricted stock units – May 31, 2021		34,237		$	4.71	$	161,400
Restricted stock units granted		19,286			4.48		86,463
Restricted stock units forfeited		(7,860	)		5.60		(44,018	)
Restricted stock units vested		(35,330	)		4.33		(153,018	)
Non-vested restricted stock units – May 31, 2022		10,333		$	4.92	$	50,827

During fiscal years ended May 31, 2022 and 2021, total restricted stock unit compensation expense recognized was $119,398 and $266,545, respectively, and has been recorded as general, administrative and sales expense in the Consolidated Statements of Operations. Stock compensation expense related to non-vested restricted stock units with a time vesting condition was $40,436 and $81,385 for the years ended May 31, 2022 and 2021, respectively.