NOTE 5 - Stock Options

The Company measures share-based compensation cost on the grant date, based on the fair value of the award, and recognizes the expense on a straight-line basis over the requisite service period for awards expected to vest. The Company estimates the grant date fair value of stock options using a Black-Scholes valuation model. No stock options were granted during the nine months ended May 31, 2026 and 2025. A summary of the Company’s stock option activity for the nine months ended May 31, 2026 and related information follows:

The aggregate intrinsic value in the table above represents the total pretax intrinsic value for all “in-the-money” options (i.e. the difference between the Company’s closing stock price on the last trading day of the period covered by this report and the exercise price, multiplied by the number of shares) that would have been received by the option holders had all in-the-money option holders exercised their vested options on May 31, 2026. The intrinsic value of the option changes based upon the fair market value of the Company’s common stock. Since the closing stock price was $0.28 on May 29, 2026 and no outstanding options have an exercise price below $0.28 per share, as of May 31, 2026, thus there is no intrinsic value to the Company’s vested stock options. 

The following table sets forth the share-based compensation cost resulting from stock option grants, including those previously granted and vesting over time, that were recorded in the Company’s Statements of Operations for the three and nine months ended May 31, 2026 and 2025:

The following table summarizes information about stock options outstanding and exercisable at May 31, 2026: