Under the Company’s previous 2007 Equity Incentive Plan, the Company may authorize and grant stock awards to employees, non-employee directors and certain other eligible participants, including stock options, restricted stock and restricted stock units. Effective June 2024, the Board authorized 600,000 new shares, along with 300,851 unused and available shares and 131,089 shares granted and outstanding from the 2007 Equity Incentive Plan, to form the 2024 Equity Incentive Plan with a total of 1,031,940 shares. On August 3, 2026, the stockholders voted to add an additional 530,000 shares to the 2024 Equity Incentive Plan. As of August 31, 2026, the 2024 Equity Incentive Plan has 899,785 shares unused and available for issuance.

The Company recognized $0.2 million and $0.2 million of stock-based compensation expense during the three and six months ended August 31, 2026 compared with $0.1 million and $0.1 million during the three and six months ended August 31, 2025, respectively. Compensation costs related to stock-based compensation are generally amortized over the vesting period of the stock awards.

The following table summarizes non-vested restricted stock unit transactions for common stock during the six months ended August 31, 2026:


	Six Months Ended August 31,
	2026
Outstanding non-vested restricted stock units at beginning of year:		194,189
Granted		297,996
Vested		(164,016	)
Cancelled/forfeited		(102,287	)
Outstanding non-vested restricted stock units as of August 31:		225,882

Weighted average grant date fair value	$	1.92
Weighted average remaining vesting period (in years)		1.10

During the six months ended August 31, 2026, the Company granted 297,996 restricted stock units to various executives and members of the board of directors with a grant-date fair value of $0.6 million. During the six months ended August 31, 2025, the Company granted 11,091 restricted stock units to a new member of the board of directors with a grant-date fair value of $17 thousand.