"During the six months ended November 30, 2007, options were granted to our newly-appointed chief executive officer and chief financial officer pursuant to terms of their employment contracts, those option grants plus the related vesting on the grants resulted in non-cash compensation expense of approximately $233,000. On August 16, 2007 options were granted to certain employees and a newly-appointed director resulting in non-cash compensation of approximately $113,000. During the six months ended November 30, 2006, 1,500,000 options were granted to our then chief executive officer resulting in a non-cash compensation expense amounting to approximately $1,527,000 and options were granted to employees resulting in non-cash compensation of approximately $184,000. Board of director fees amounting to approximately $212,000 were paid during the six months ended November 30, 2007 as compared to $150,000 paid for the six months ended November 30, 2006. Other salary expenses increased by approximately $632,000 for the six months ended November 30, 2007 as compared with the six months ended November 30, 2006 including approximately $595,000 in salaries and related expenses for SSDI during the six months ended November 30, 2007. Salary expenses for the parent company including wages, payroll taxes, employee benefits and expenses connected with 401(k) employer matching increased by approximately $38,000 during the six months ended November 30, 2007 as compared with the six months ended November 30, 2006. Travel and related expenses for the six months ended November 30, 2007 increased by approximately $99,000 due to expenses for SSDI being combined with the parent company. Consulting expenses increased by approximately $33,000 for the six months ended November 30, 2007 as compared to the six months ended November 30, 2006 due to one time fees for evaluations of our various technologies and expenses associated with our production of materials for the upcoming litigation. Offsetting the increases in selling, general and administrative expenses for the six months ended November 30, 2007 as compared to the six months ended November 30, 2006, were decreases amounting to approximately $85,000 for public relations expenses.
Settlement and license expenses amounting to $419,000 were recorded for the six months ended November 30, 2007 relating to royalties payable resulting from an agreement with Fish (see Note 4 to our condensed consolidated financial statements for more information). For the six months ended November 30, 2006, $6,300,000 was recorded related to the Fish agreement"
