Note 5: SHAREHOLDERS' EQUITY

6 Months Ended

Feb. 29, 2012

Stockholders' Equity Note Disclosure [Text Block]

Note 5:  SHAREHOLDERS’ EQUITY

Declaration of cash dividend

On February 13, the board of directors declared a distribution of ongoing quarterly cash dividend of $0.05 per share to its shareholders. The first dividend payment was distributed on Thursday, March 1, 2012, for shareholders of record as of Tuesday, February 21, 2012.  The total dividend payable as of February 29, 2012 was $790,692.

Stock Repurchase

On January 10, 2010, the Board of Directors authorized a renewed share repurchase program (Phase II) effective as of February 15, 2010.  The renewed program enabled the Company to buy back up to one million shares during a 12-month period.

The detail of repurchases made under Phase II is listed in the following table:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Remaining Shares Authorized for Repurchase Under the Share Repurchase Plan – Phase II
04/01/10 to 04/30/10		86,976	$	2.2237		913,024
05/01/10 to 05/31/10		170,101	$	2.3515		742,923
06/01/10 to 06/30/10		33,665	$	2.3670		709,258
07/01/10 to 07/31/10		18,789	$	2.4433		690,469
08/01/10 to 08/31/10		10,878	$	2.4283		679,591
09/01/10 to 09/30/10		81,070	$	2.6969		598,521
10/01/10 to 10/31/10		170,494	$	3.1671		428,027
11/01/10 to 11/30/10		146,116	$	2.9523		281,911
12/01/10 to 12/31/10		41,214	$	2.5716		240,697
01/01/11 to 01/31/11		119,469	$	2.9028		121,228
02/01/11 to 02/28/11		117,476	$	3.4510		3,752
Phase II Total		996,248	$	2.8041

*Phase II repurchase program ended on 02/14/2011.

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.

TRANSACTIONS IN FY 2012

	Number of Options			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Life
Outstanding, August 31, 2011		957,636		$	1.40		5.22
Granted		100,000		$	3.25
Exercised		(298,336	)	$	1.18
Expired		(5,500	)	$	2.84
Outstanding, February 29, 2012		753,800		$	1.72		5.07
Exercisable, February 29, 2012		483,500		$	1.43		4.43

The weighted-average remaining contractual life of options outstanding issued under the Plan was 5.07 years at February 29, 2012.  The exercise prices for the options outstanding at February 29, 2012 ranged from $1.00 to $3.27, 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		432,300	5.3 years	$	1.07		324,300	4.6 years	$	1.10
$	1.51	$	2.00		100,000	2.8 years	$	1.62		100,000	2.8 years	$	1.62
$	2.01	$	2.50		50,000	8.1 years	$	2.49		10,000	8.1 years	$	2.49
$	3.01	$	3.27		171,500	5.0 years	$	3.18		49,200	5.5 years	$	3.06
					753,800	5.1 years	$	1.72		483,500	4.4 years	$	1.43

Other Stock Options

As of February 29, 2012, the outside members of the Board of Directors hold options to purchase 79,000 shares of common stock at exercise prices ranging from $0.38 to $6.68, which were granted prior to August 31, 2011.

Transactions in FY12	Number of Options			Weighted-Average Exercise Price Per Share
Outstanding, August 31, 2011		79,000		$	1.37
Exercised		(40,800	)	$	0.84
Outstanding, February 29, 2012		38,200		$	1.93
Exercisable, February 29, 2012		15,400		$	2.06