NOTE 15 – SHARE REPURCHASE PLAN

In December 2011, the Company’s Board of Directors authorized management at its discretion to repurchase up to one million (1,000,000) shares of the Company’s outstanding common stock. On June 6, 2012, the Board of Directors of the Company increased the number of shares of the Company’s outstanding common stock that management is authorized to repurchase to up to three million (3,000,000). The repurchases must be effectuated through open market purchases, privately negotiated block trades, unsolicited negotiated transactions, and/or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission or in such other manner as will comply with the provisions of the Securities Exchange Act of 1934.

As of November 30, 2013, the Company had repurchased 1,126,815 shares of the Company’s common stock at an average price of $2.17 per share through open market and privately negotiated transactions.

The repurchased shares will be held as treasury stock at cost and have been removed from common shares outstanding as of November 30, 2013. As of November 30, 2013 and November 30, 2012, 1,276,915 and 942,474 shares, respectively, were held as treasury stock, which include 150,100 and 150,100 shares, respectively, which is the Company’s portion of the value of the Company stock held by Saneron.

Subsequent to the balance sheet date, the Company repurchased an additional 59,906 shares of the Company’s common stock at an average price of $1.87 per share through open market and privately negotiated transactions.