Note 5: SHAREHOLDERS' EQUITY

9 Months Ended

May 31, 2012

Stockholders' Equity Note Disclosure [Text Block]

Note 5: SHAREHOLDERS’ EQUITY

Declaration of cash dividend

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

On April 17, 2012, the board of directors declared the second fiscal quarter cash dividend of $0.05 per share to its shareholders. This dividend payment was distributed on May 8, 2012, for shareholders of record as of April 27, 2012. The total dividend amount was $796,151.

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		(353,936	)	$	1.22
Expired		(7,100	)	$	2.54
Outstanding, May 31, 2012		696,600		$	1.74		4.79
Exercisable, May 31, 2012		473,900		$	1.42		4.36

The weighted-average remaining contractual life of options outstanding issued under the Plan was 4.79 years at May 31, 2012. The exercise prices for the options outstanding at May 31, 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		388,700	5.1 years	$1.07		317,900	4.7 years	$1.08
$1.51	$2.00		100,000	2.5 years	$1.62		100,000	2.5 years	$1.62
$2.01	$2.50		40,000	7.9 years	$2.49		10,000	7.9 years	$2.49
$3.01	$3.27		167,900	4.7 years	$3.19		469,300	5.3 years	$3.06
			696,600	4.8 years	$1.74		473,900	4.4 years	$1.42

Other Stock Options

As of May 31, 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	)	$	1.22
Expired		(11,600	)	$	2.54
Outstanding, May 31, 2012		26,600		$	1.74
Exercisable, May 31, 2012		11,400		$	1.41