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Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

SHAREHOLDERS' EQUITY

NOTE 7 - SHAREHOLDERS' EQUITY

a.

Share capital:

The Company's ordinary shares are traded in the United States on the Nasdaq Global Market, under the symbol MNDO.

b.

Treasury shares:

During the period between September 2008 and December 2009, the Company has purchased an aggregate amount of 3,165,092 ordinary shares for a total consideration of approximately $2.8 million. Currently, the Company does not have an active buyback plan. As of December 31, 2019, the remaining treasury shares are 1,763,684 which amounted to $1,204 thousands, after issuance of shares upon exercise of options granted to employees and issuance of shares as part of the acquisition of Message Mobile in the year ended December 31, 2019 (see Note 1a) from treasury shares in the amount of $311 thousand, $39 thousand and $53 thousand in the years ended December 31, 2019, 2018 and 2017 respectively.

c.

Dividend:

Dividends paid per share in the years ended December 31, 2019, 2018 and 2017 were $0.26, $0.30 and $0.32, respectively.

The Company paid dividends to its shareholders in the amounts of $5.1 million, $5.8 million and $6.2 million during the years ended December 31, 2019, 2018 and 2017, respectively.

d.

Stock option plan:

In 2011, the Board of Directors and the Company's shareholders approved a share incentive plan (the "2011 Share Incentive Plan"). Under the 2011 Share Incentive Plan, options for up to 1,800,000 ordinary shares of NIS 0.01 par value can be granted to employees, directors, consultants or contractors of the Company and its subsidiaries.

Each option can be exercised to purchase one ordinary share. Immediately upon issuance, the ordinary shares issuable upon the exercise of the options will confer on holders the same rights as the other ordinary shares.

The Board of Directors determines the exercise price and the vesting period of the options granted. The outstanding options granted under the abovementioned plan vest over 2-4 years. Options not exercised will expire five years after the day of grant.

The compensation costs charged against income for all of the Company's equity incentive plans during the years ended December 31, 2019, 2018 and 2017 were approximately $200 thousand, $224 thousand and $182 thousand, respectively.

Under Section 102 of the Israeli Income Tax Ordinance, pursuant to an election made by the Company thereunder, Israeli employees (except for employees who are deemed "Controlling Members" under the Israeli Income Tax Ordinance) are subject to a lower tax rate on capital gains accruing to them in respect of Section 102 awards. However, the Company is not allowed to claim as an expense for tax purposes the amounts credited to such employees.

1)

The following is a summary of the status of the 2011 Share Incentive Plan as of December 31, 2019, 2018 and 2017, and changes during the years ended on those dates:

		Years ended December 31,
		2 0 1 9								2 0 1 8								2 0 1 7
		Number				Weighted average exercise price				Number				Weighted average exercise price				Number				Weighted average exercise price

Options outstanding at the beginning of year			674,200			$	1.460				813,100			$	1.490				875,500			$	1.600
Changes during year:
Granted (a)			156,000			$	0.003				118,000			$	0.003				90,000			$	0.650
Exercised			(108,200	)		$	0.003				(131,800	)		$	0.003				(46,000	)		$	1.150
Forfeited			(90,000	)		$	0.003				(74,100	)		$	0.500				(78,400	)		$	1.410
Expired			(280,000	)		$	2.947				(51,000	)		$	2.950				(28,000	)		$	2.950
Options outstanding at the end of year			352,000			$	0.23				674,200			$	1.46				813,100			$	1.490

Options exercisable at the end of year			34,000			$	1.49				350,000			$	2.630				303,000			$	2.900

Weighted average grant date fair value of options granted during the year (b)						$	1.31							$	1.46							$	1.30

(a)

In the years ended December 31, 2019 and 2018, the options were granted with an exercise price equal to par value of NIS 0.01.

In the year ended December 31, 2017, the options were granted with an exercise price equal to the average closing price per share of the Company's ordinary shares on the stock market during the 30-day trading period immediately preceding the date of grant of such option, or with an exercise price equal to par value of NIS 0.01.

(b)

The fair value of each stock option granted is computed on the date of grant according to the Black-Scholes option pricing model with the following assumptions:

		Years ended December 31,
		2 0 1 9				2 0 1 8				2 0 1 7

Dividend yield			11	%			11	%			11	%
Expected volatility*			25	%			28	%			35	%
Average risk-free interest rate			1.86	%			2.6	%			1.9	%
Expected average term - in years			3.88				3.88				3.88

*

Volatility is based on historical volatility of the Company's share price for periods matching the expected term of the option until exercise.

As of December 31, 2019, there were approximately $408 thousand of total unrecognized compensation costs, net of expected forfeitures, related to unvested share-based compensation awards granted under the 2011 Share Incentive Plan. The costs are expected to be recognized over a weighted average period of 1.42 years.

2)

The following table summarizes information about options outstanding and exercisable as of December 31, 2019:

Options Outstanding

Options Exercisable

Number

Weighted

Number

Weighted

outstanding

average

Weighted

exercisable

average

Weighted

Range of

at

remaining

average

at

remaining

average

exercise

December 31,

contractual

exercise

December 31,

contractual

exercise

prices

2 0 1 9

life

price

2 0 1 9

life

price

Years

Years

$

0.003

320,000

3.65

$

0.003

14,000

2

$

0.003

$

2.425 – 2.688

32,000

1.9

$

2.49

20,000

1.64

$

2.53

The total intrinsic value of options exercised during the years ended December 31, 2019, 2018 and 2017 were approximately $115 thousand, $266 thousand and $70 thousand, respectively. As of December 31, 2019, the aggregate intrinsic value of the outstanding options is $767 thousand, and the aggregate intrinsic value of the exercisable options is $31 thousand.