5. SHAREHOLDERS' EQUITY

6 Months Ended

Feb. 28, 2013

Equity [Abstract]

Note 5. SHAREHOLDERS' EQUITY

Dividend

The Board of Directors declared cash dividends during fiscal year 2012. 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
02/21/2012	03/01/2012	15,813,844	$0.05	$790,692
04/27/2012	05/08/2012	15,923.019	$0.05	$796,151
08/07/2012	08/10/2012	15,923.019	$0.05	$796,151
Total				$2,382,994

The Board of Directors also declared the following cash dividend during the first six months of fiscal year 2013.

Record Date	Distribution Date	Number of Shares Outstanding on Record Date	Dividend per Share	Total Amount
11/08/2012	11/13/2012	15,927,806	$0.05	$796,390
12/24/2012	12/28/2012	16,021,309	$0.14*	$2,242,983
Total				$3,039,373

*As a tax benefit to our shareholders considering the increase in federal income tax for capital gains in 2013, the Board of Directors declared an accelerated cash dividend, $0.14 per share, on December 14, 2012, consisting of all of the planned February 2013 distribution of $0.05 per share, plus $0.03 per share of the planned $0.05 per share per quarter for the remaining three fiscal quarters ending in calendar year 2013.

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 February 28, 2013, employees hold Qualified ISO to purchase 556,800 shares of common stock at exercise prices ranging from $1.00 to $5.06 which were granted prior to February 28, 2013.

Transactions in FY13	Number of Options	Weighted-Average Exercise Price Per Share	Weighted-Average Remaining Contractual Life
Outstanding, August 31, 2012	689,800	$           1.74
Granted	20,000	$           5.06
Exercised	(153,000)	$           1.84
Outstanding, February 28, 2013	556,800	$           1.84	4.57
Exercisable, February 28, 2013	370,000	$           1.52	4.22

Non-Qualified Incentive Stock Options (Non-Qualified ISO)

As of February 28, 2013, the outside members of the Board of Directors hold options to purchase 36,600 shares of common stock at exercise prices ranging from $1.67 to $6.68, which were granted prior to February 28, 2013.

Transactions in FY13	Number of Options	Weighted-Average Exercise Price Per Share	Weighted-Average Remaining Contractual Life
Outstanding, August 31, 2012	36,600	$           3.47
Outstanding, February 28, 2013	36,600	$           3.47	7.64
Exercisable, February 28, 2013	19,400	$           3.14	6.49

The weighted-average remaining contractual life of options outstanding issued under the Plan, both Qualified ISO and Non-Qualified ISO, was 4.8 years at February 28, 2013. The exercise prices for the options outstanding at February 28, 2013 ranged from $1.00 to $6.68, 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	357,700	4.5 years	$1.07	286,900	4.1 years	$1.08
$1.51	$3.00	54,600	7.0 years	$2.37	22,200	6.8 years	$2.20
$3.01	$4.50	157,100	4.7 years	$3.26	76,300	4.6 years	$3.10
$4.51	$6.68	24,000	4.5 years	$5.33	4,000	4.5 years	$6.68
		593,400	4.8 years	$1.94	389,400	4.3 years	$1.60