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7. SHAREHOLDERS' EQUITY | 12 Months Ended
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Aug. 31, 2016
Equity [Abstract] |
SHAREHOLDERS' EQUITY | Dividend The Company’s Board of Directors declared cash dividends during fiscal year 2016 and 2015. The details of dividend paid are in the following tables: FY2015
Record Date |  | Distribution Date |  | Number of Shares Outstanding on Record Date |  | Dividend per Share |  |  | Total Amount |
11/7/2014 |  | 11/14/2014 |  | 16,841,114 |  | $ | 0.05 |  |  | $ | 842,056 |
1/26/2015 |  | 2/2/2015 |  | 16,852,117 |  | $ | 0.05 |  |  | $ | 842,606 |
5/11/2015 |  | 5/18/2015 |  | 16,875,117 |  | $ | 0.05 |  |  | $ | 843,754 |
7/23/2015 |  | 7/30/2015 |  | 16,943,001 |  | $ | 0.05 |  |  | $ | 847,150 |
Total |  |  |  |  |  |  |  |  |  | $ | 3,375,566 |
FY2016
Record Date |  | Distribution Date |  | Number of Shares Outstanding on Record Date |  | Dividend per Share |  |  | Total Amount |
11/09/2015 |  | 11/16/2015 |  | 16,996,001 |  | $ | 0.05 |  |  | $ | 849,800 |
1/29/2016 |  | 02/05/2016 |  | 17,018,001 |  | $ | 0.05 |  |  | $ | 850,900 |
5/02/2016 |  | 5/09/2016 |  | 17,029,501 |  | $ | 0.05 |  |  | $ | 851,475 |
8/11/2016 |  | 8/18/2016 |  | 17,221,978 |  | $ | 0.05 |  |  | $ | 861,099 |
Total |  |  |  |  |  |  |  |  |  | $ | 3,413,274 |
Although dividend distributions are currently expected to continue on a quarterly basis, the Company’s Board of Directors reserves the right to discontinue the dividend distribution any time. Stock Option Plan In September 1996, the Company’s Board of Directors adopted, and the Company’s shareholders approved, the 1996 Stock Option Plan (the "1996 Plan") under which a total of 1,000,000 shares of common stock had been reserved for issuance. The total number of shares that may be granted under the 1996 Plan was increased to 2,000,000 in March 1999, to 4,000,000 in February 2000, to 5,000,000 in December 2000 and to 6,000,000 in February 2005. All such increases were approved by the Company’s Board of Directors and the Company’s shareholders. The 1996 Plan terminated in September 2006 in accordance with its terms. On February 23, 2007, the Company’s Board of Directors adopted and the Company’s shareholders approved the 2007 Stock Option Plan (the “2007 Plan”) under which a total of 1,000,000 shares of common stock had been reserved for issuance. On February 25, 2014, the Company’s Board of Directors and the Company’s shareholders approved an increase of the total number of shares that may be granted under the 2007 Plan to 2,000,000. Incentive Stock Options (“ISOs”) As of August 31, 2016, employees hold ISOs to purchase in the aggregate 894,750 shares of the Company’s common stock at exercise prices ranging from $1.00 to $9.82 per share.
Transactions in FY15 (ISOs) |  | Number of Options |  |  | Weighted-Average Exercise Price Per Share |  |  | Weighted-Average Remaining Contractual Life |
Outstanding, August 31, 2014 |  |  | 798,500 |  |  | $ | 4.59 |  |  |  | 6.27 |
Granted |  |  | 37,000 |  |  | $ | 6.99 |  |  |  |  |
Exercised |  |  | (95,384 | ) |  | $ | 2.49 |  |  |  |  |
Canceled/Forfeited |  |  | (119,116 | ) |  | $ | 4.86 |  |  |  |  |
Outstanding, August 31, 2015 |  |  | 621,000 |  |  | $ | 5.01 |  |  |  | 6.01 |
Vested and Exercisable, August 31, 2015 |  |  | 265,700 |  |  | $ | 2.81 |  |  |  | 4.40 |
Vested and Expected to Vest, August 31, 2015 |  |  | 576,952 |  |  | $ | 4.87 |  |  |  | 6.32 |
Transactions in FY16 (ISOs) |  | Number of Options |  |  | Weighted-Average Exercise Price Per Share |  |  | Weighted-Average Remaining Contractual Life |
Outstanding, August 31, 2015 |  |  | 621,000 |  |  | $ | 5.01 |  |  |  | 6.01 |
Granted |  |  | 412,100 |  |  | $ | 9.71 |  |  |  |  |
Exercised |  |  | (100,863 | ) |  | $ | 1.45 |  |  |  |  |
Canceled/Forfeited |  |  | (27,487 | ) |  | $ | 7.66 |  |  |  |  |
Expired |  |  | (10,000 | ) |  | $ | 1.13 |  |  |  |  |
Outstanding, August 31, 2016 |  |  | 894,750 |  |  | $ | 7.54 |  |  |  | 7.72 |
Vested and Exercisable, August 31, 2016 |  |  | 253,380 |  |  | $ | 4.85 |  |  |  | 5.26 |
Vested and Expected to Vest, August 31, 2016 |  |  | 812,458 |  |  | $ | 7.40 |  |  |  | 7.58 |
Non-Qualified Stock Options (“NQSOs”) As of August 31, 2016, the outside members of the Company’s Board of Directors hold NQSOs to purchase in the aggregate 52,750 shares of the Company’s common stock at exercise prices ranging from $1.78 to $8.62 per share.
Transactions in FY15 (NQSOs) |  | 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 |  |  | 13,750 |  |  | $ | 6.75 |  |  |  |  |
Exercised |  |  | (6,503 | ) |  | $ | 3.28 |  |  |  |  |
Cancelled/Forfeited |  |  | (14,497 | ) |  | $ | 4.97 |  |  |  |  |
Outstanding, August 31, 2015 |  |  | 49,350 |  |  | $ | 5.52 |  |  |  | 7.75 |
Exercisable, August 31, 2015 |  |  | 27,200 |  |  | $ | 4.70 |  |  |  | 6.31 |
Transactions in FY16 (NQSOs) |  | Number of Options |  |  | Weighted-Average Exercise Price Per Share |  |  | Weighted-Average Remaining Contractual Life |
Outstanding, August 31, 2015 |  |  | 49,350 |  |  | $ | 5.52 |  |  |  | 7.75 |
Granted |  |  | 15,000 |  |  | $ | 8.62 |  |  |  |  |
Exercised |  |  | (11,600 | ) |  | $ | 3.33 |  |  |  |  |
Cancelled/Forfeited |  |  | (0 | ) |  | $ | – |  |  |  |  |
Outstanding, August 31, 2016 |  |  | 52,750 |  |  | $ | 6.88 |  |  |  | 8.07 |
Exercisable, August 31, 2016 |  |  | 26,500 |  |  | $ | 5.95 |  |  |  | 6.70 |
The fair value of the options, including both ISOs and NQSOs, granted during fiscal year 2016 is estimated at $1,189,730. The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: dividend yield of 2.32%, pre-vest forfeiture rate of 6.31%, expected volatility of 34.22%, risk-free interest rate of 1.42%, and expected life of 6.80 years. The total fair value of non-vested stock options as of August 31, 2016 was $1,366,269 and is amortizable over a weighted average period of 7.58 years. The fair value of the options, including both ISOs and NQSOs, granted during fiscal year 2015 was estimated at $113,435. The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: dividend yield of 3.03%, pre-vest forfeiture rate of 6.20%, expected volatility of 47.13%, risk-free interest rate of 2.09%, and expected life of 6.89 years. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which do not have vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. Because our stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its stock options. Intrinsic Value of options outstanding and options exercisable
|  | Intrinsic Value of Options Outstanding |  |  | Intrinsic Value of Options Exercisable |  |  | Intrinsic Value of Options Exercised |
FY15 |  | $ | 1,182,797 |  |  | $ | 1,109,489 |  |  | $ | 396,485 |
FY16 |  | $ | 1,500,659 |  |  | $ | 1,025,718 |  |  | $ | 853,423 |
The weighted-average remaining contractual life of options outstanding issued under the 1996 and 2007 Plan was 7.74 years at August 31, 2016. The exercise prices for the options outstanding at August 31, 2016 ranged from $1.00 to $9.82 per share, 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 |  | 67,000 |  | 3.0 years |  | $ 1.00 |  | 67,000 |  | 3.0 years |  | $1.03
$1.51 |  | $ 3.00 |  | – |  | – |  | – |  | – |  | – |  | –-
$3.01 |  | $ 4.50 |  | 20,000 |  | 1.9 years |  | $ 3.16 |  | 20,000 |  | 1.9 years |  | $3.16
$4.51 |  | $ 6.00 |  | 74,000 |  | 2.7 years |  | $ 5.48 |  | 44,000 |  | 2.9 years |  | $5.38
$6.01 |  | $ 7.50 |  | 367,200 |  | 8.0 years |  | $ 6.85 |  | 148,880 |  | 7.9 years |  | $6.85
$7.51 |  | $ 9.00 |  | 15,000 |  | 10.0 years |  | $ 8.62 |  | 0 |  |  |  |
$9.01 |  | $ 9.82 |  | 404,300 |  | 9.5 years |  | $ 9.71 |  | 0 |  |  |  |
|  |  |  | 947,500 |  |  |  |  |  | 279,880 |  |  |  |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(29)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(31)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 4.C) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(30)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(d)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 + Details
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