NOTE 7. STOCK-BASED COMPENSATION
Stock-based compensation expense was $66,720 for the first nine months of fiscal 2013, and $80,160 for the first nine months of fiscal 2012. Stock-based compensation expenses for the nine months ended December 31, 2012 and 2011 were non-cash, and due to the issuance of automatic stock options to our non-employee directors on their reelection to our Board. We calculate the share-based compensation expense using the Black-Scholes standard option-pricing model.