XML 43 R11.htm IDEA: XBRL DOCUMENT v2.4.1.9
6. SHAREHOLDERS' EQUITY
 3 Months Ended
Nov. 30, 2014
Equity [Abstract]  
SHAREHOLDERS' EQUITY

Dividend

The Board of Directors declared cash dividends during fiscal year 2014. The details of dividends paid are in the following table:

 

Record Date  Distribution Date  Number of Shares
Outstanding
on Record Date		   Dividend per Share   Total Amount 
11/08/2013  11/15/2013   16,073,894   $0.04   $642,956 
2/17/2014  2/24/2014   16,149,460   $0.05    807,473 
5/09/2014  5/16/2014   16,165,171   $0.05    808,259 
8/04/2014  8/11/2014   16,337,955   $0.05    816,897 
Total               $3,075,585 

 

The Board of Directors also declared cash dividend during the first quarter of fiscal year 2015.

 

Record Date  Distribution Date  Number of Shares
Outstanding
on Record Date		   Dividend per Share   Total Amount 
11/07/2014  11/14/2014   16,841,114   $0.05   $842,056 
                   
Total               $842,056 

 

Stock Option Plan

In September 1996, the Board of Directors adopted, and the shareholders approved, the 1996 Stock Option Plan (the "Option Plan") under which a total of 1,000,000 shares of common stock had been reserved for issuance. In March 1999, the shareholders approved an increase in the number of shares that may be granted under the Option Plan to 2,000,000. In February 2000, the shareholders approved an increase in the number of shares that may be granted under the Option Plan to 4,000,000. In December 2000, the shareholders approved an increase in the number of shares that may be granted under the Option Plan to 5,000,000. Furthermore, in February 2005, the shareholders approved an additional 1,000,000 shares, resulting in the total number of shares that may be granted under the Option Plan to 6,000,000. The 1996 Stock Option Plan terminated in September 2006 by its term.

 

On February 23, 2007, the Board of Directors adopted and the shareholders approved the 2007 Stock Option Plan under which a total of 1,000,000 shares of common stock had been reserved for issuance.

 

Qualified Incentive Stock Options (Qualified ISO)

As of November 30, 2014, employees hold Qualified ISO to purchase 815,500 shares of common stock at exercise prices ranging from $1.00 to $6.85, which were granted prior to November 30, 2014.

 

Transactions in FY14  Number of Options   Weighted-Average Exercise Price
Per Share		   Weighted-Average Remaining Contractual Life 
Outstanding, August 31, 2014   798,500   $4.59    6.265 
Granted   17,000   $6.85      
Exercised   0   $0.00      
Outstanding, November 30,  2014   815,500   $4.64    6.095 
Exercisable, November 30, 2014   345,000   $2.31    3.033 

 

The fair value of the options, including both ISO and NQSO options, granted during the quarter ended November 30, 2014 is estimated at $68,070. The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions for Fiscal quarter ended November 30, 2014: dividend yield of 2.92%, pre-vest forfeiture rate of 6.23%, expected volatility of 49.55%, risk-free interest rate of 2.23%, and expected life of 6.90 years.

 

Non-Qualified Stock Options (Non-Qualified ISO)

As of November 30, 2014, the outside members of the Board of Directors hold options to purchase 56,600 shares of common stock at exercise prices ranging from $1.67 to $6.72.

 

Transactions in FY15  Number of Options  

Weighted-Average Exercise Price

Per Share

   Weighted-Average Remaining Contractual Life 
             
Outstanding, August 31, 2014   56,600   $4.82    7.96 
Granted   0   $0.00      
Exercised   0   $0.00      
Outstanding, November 30, 2014   56,600   $4.82    7.71 
Exercisable, November 30, 2014   31,400   $3.96    6.49 

 

The weighted-average remaining contractual life of options outstanding issued under the Plan, both Qualified ISO and Non-Qualified SO, was 6.20 years at November 30, 2014. The exercise prices for the options outstanding at November 30, 2014 ranged from $1.00 to $6.85, and the information relating to these options is as follows:

 

Exercise Price  Awards Outstanding  Awards Exercisable
Low  High  Quantity   Weighted Average Remaining Contractual Life  Weighted Average Exercise Price  Quantity   Weighted Average Remaining Contractual Life  Weighted Average Exercise Price
$1.00  $ 1.50   197,500   3.21 years  $ 1.05   197,500   3.2 years  $1.05
$1.51  $ 3.00   17,600   5.48 years  $ 2.42   7,600   5.6 years  $2.33
$3.01  $ 4.50   141,500   2.87 years  $ 3.28   108,500   3.0 years  $3.18
$4.51  $ 6.00   132,000   5.24 years  $ 5.45   58,800   4.1 years  $5.59
$6.01  $ 6.85   383,500   9.67 years  $ 6.84   4,000   2.8 years  $6.68
TOTAL      872,100   6.20 years  $4.65   376,400   3.3 years  $2.45