Quarterly report pursuant to Section 13 or 15(d)

Stock-based compensation

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Stock-based compensation
6 Months Ended
May. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based Compensation
STOCK-BASED COMPENSATION

On June 15, 2005, the shareholders approved an amended and Restated Stock Option Plan amending the 2003 Stock Option Plan (the “Plan”). The Plan authorizes the issuance of up to one million shares of common stock (subject to customary adjustments set forth in the plan) pursuant to equity awards, which may take the form of incentive stock options, nonqualified stock options restricted shares, stock appreciation rights and/or performance shares. The plan expired in April, 2015.
On January 1, 2006, the Company adopted ASC Topic 718, "Stock Compensation" which requires an entity to recognize the grant-date fair value of stock options and other equity-based compensation issued to employees in the financial statements.
The fair value of the stock option grants below were estimated on the date of the grant using a Black-Scholes valuation model and the assumptions in the following table:
Option Grant Date
January 5, 2015
Assumptions:
 
Risk-free interest rate
1.57%
Dividend yield
Stock volatility
37.74%
Option Term (years)
10.0

On January 5, 2015, the Company granted incentive stock options for 175,000 shares to eight Company employees, including Richard Kornhauser, the Company's Chief Executive Officer for 100,000 shares and Stephen Heit, the Company's Chief Financial Officer for 35,000 shares. All options were granted at $3.48 per share. The closing price of the Company's stock on the date of grant was $3.48 per share. The options vest in equal 20% increments commencing on January 5, 2015, and for each of the four subsequent anniversaries of such date. The options expire on January 5, 2024. The Company has estimated the fair value of the options granted to be $297,834 as of the grant date, which amount shall be amortized as an expense over a five year period. The Company recorded a charge against earnings in the amount of $23,897 for the three months ended May 31, 2015 and $5,400 for the three months ended May 31, 2014 in for all outstanding stock options granted. The Company recorded a charge against earnings in the amount of $58,662 for the six months ended May 31 2015 and $10,800 for the six months ended May 31 2014 in for all outstanding stock options granted.
A summary of stock option activity for the Company is as follows:
 
Number of Options
Weighted-Average Exercise Price
Weighted-Average Remaining Term (years)
Aggregate Intrinsic Value
Outstanding at November 30, 2013
0
Granted
137,000
$3.40
5.7
Exercised
Canceled or Forfeited
Outstanding at November 30, 2014
137,000
$3.40
5.7
Granted
175,000
$3.48
9.9
Exercised
 
Canceled or Forfeited
Outstanding at February 28, 2015
312,000
$3.45
7.9
Granted
0
Exercised
Canceled or Forfeited
Outstanding at May 31, 2015
312,000
$3.45
7.6