XML 23 R12.htm IDEA: XBRL DOCUMENT

NOTE 6: STOCK BASED COMPENSATION

3 Months Ended

Nov. 30, 2021

Equity [Abstract]

NOTE 6: STOCK BASED COMPENSATION

NOTE 6: STOCK BASED COMPENSATION

The Company adopted ASC 718, “Share Based Payments.” which requires companies to expense the value of employee stock options and similar awards.

During the nine months ended November 30, 2021, the Company granted options to acquire 41,630 shares to employees exercisable at prices ranging from $3.19 to $6.05 and options to acquire 30,250 shares to non-employee members of the board of directors with an exercise price of $3.19. The options granted to employees and directors vest over three years and expire in ten years. The options granted during the first nine months of fiscal 2022 had a combined weighted average grant date fair value of $3.65 per share.

The weighted-average fair value of options are estimated on the date of grant using the Black-Scholes options-pricing model. The weighted-average Black-Scholes assumptions are as follows:

	Nine Months Ended November 30, 2021
Expected Life	5 - 8 years
Risk free interest rate	0.78% - 1.47%
Expected volatility	50.73% - 52.45%
Expected dividend yield	0%

Total compensation related to non-vested options not yet recognized as of November 30, 2021 was $219,000 and will be recognized over the next 2.4 years based on vesting date.

At November 30, 2021, the intrinsic value of the outstanding stock options was approximately $563,000.

For the three months ended November 30, 2021 and 2020, the Company recorded stock-based compensation expense of approximately $52,000 and $11,000, respectively. For the nine months ended November 30, 2021 and 2020, the Company recorded stock-based compensation expense of approximately $93,000 and $27,000, respectively. Such amounts are included in general and administrative expenses on the unaudited consolidated statements of income.