|12 Months Ended|
Nov. 30, 2011
|Stockholders' Equity [Abstract]|
NOTE 7 – STOCKHOLDERS' EQUITY.
Common Stock Issuances
During the year ended November 30, 2011, the Company issued 68,417 common shares to option holders who exercised options for $80,936. Further, during the year ended November 30, 2011, certain option holders exercised 56,667 options, using the net exercise method. Under the net exercise method, the option holders surrendered 24,431 options, to cover the total cost of exercising the stock options resulting in net common shares of 32,236 being issued. The result of a smaller number of shares being issued to the option holder caused less dilution and fewer shares used from the option plan. There were no options exercised during the year ended November 30, 2010.
Employee Stock Incentive Plan
The Company maintains the 2000 Stock Incentive Plan ("the Plan") that has reserved 2,250,000 shares of the Company's common stock for issuance pursuant to stock options or restricted stock. During 2004, the Plan was amended to allow issuance of options to certain consultants of the Company. Options issued under the Plan have a term ranging from five to seven years from the date of grant and have a vesting period ranging from immediately upon issuance to three years from the date of grant. The options are exercisable for a period of 90 days after termination. No further options will be issued under the plan.
The Company also maintains the 2006 Stock Incentive Plan (the "2006 Plan"). The 2006 Plan has reserved 1,000,000 shares of the Company's common stock for issuance pursuant to stock options, restricted stock, stock-appreciation rights (commonly referred to as "SARs"), stock awards (i.e. performance shares and performance units). The Company has issued 662,236 options from the 2006 Plan to date. As of November 30, 2011, there were 337,764 shares available for future issuance under the 2006 plan.
The fair value of each option award is estimated on the date of the grant using the Black-Scholes valuation model that uses the assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company's stock. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. Expected dividends is based on the historical trend of the Company not issuing dividends.
Variables used to determine the fair value of the options granted for the years ended November 30, 2011 and 2010 are as follows:
The range of expected volatilities for options issued during fiscal 2011 and 2010 are as follows:
Stock option activity for the 2000 Plan and the 2006 Plan for the year ended November 30, 2011 was as follows:
The weighted average grant date fair value of options granted during the years ended November 30, 2011 and November 30, 2010 was $2.12 and $1.05, respectively.
The aggregate intrinsic value represents the total value of the difference between the Company's closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options that would have been received by the option holders had all option holders exercised their options on November 30, 2011. The intrinsic value of the Company's stock options changes based on the closing price of the Company's stock. The aggregate intrinsic value of options exercised during the years ended November 30, 2011 and November 30, 2010 was $77,067 and $0, respectively.
Significant option groups outstanding and exercisable at November 30, 2011 and related price and contractual life information are as follows:
A summary of the status of the Company's non-vested options as of November 30, 2011, and changes during the year ended November 30, 2011, is presented below.
As of November 30, 2011 and November 30, 2010, there was approximately $547,000 and $189,000, respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2000 Plan and the 2006 Plan. As of November 30, 2011 and November 30, 2010, the cost is expected to be recognized over a weighted-average period of 2.1 and 1.9 years, respectively. The total fair value of shares vested during the years ended November 30, 2011 and November 30, 2010 was approximately $329,600 and $136,000, respectively.
The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.
Reference 1: http://www.xbrl.org/2003/role/presentationRef