6 – Common stock issued for services

During the three months ended August 31, 2012, the Company issued 16,230 fully vested shares of common stock at $.77 per share to directors for past services, and recognized approximately $12,000 in stock-based compensation.

The Company issued 60,000 shares of common stock to a consultant at $2.68 per share, which was the fair value at the commitment date, and is being amortized over the requisite service period. During the three months ended August 31, 2012, the Company recognized approximately $153,000 in stock-based compensation related to this grant.