5. SHAREHOLDERS' EQUITY

3 Months Ended

Nov. 30, 2013

Equity [Abstract]

Note 5. SHAREHOLDERS' EQUITY

Dividend

The Board of Directors declared cash dividends during fiscal year 2013. 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
11/8/2012	11/13/2012	15,927,806	$0.05	$796,390
12/24/2012	12/28/2012	16,021,309	$0.14	$2,242,983
5/7/2013	5/10/2013	16,030,433	$0.03	$480,913
8/12/2013	8/15/2013	16,030,894	$0.03	$480,926
Total				$4,001,212

The Board of Directors also declared cash dividend during the first quarter of fiscal year 2014.

Record Date	Distribution Date	Number of Shares Outstanding on Record Date	Dividend per Share	Total Amount
11/08/2013	11/15/2013	16,073,894	$0.04	$642,956
Total				642,956

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 November 30, 2013, employees hold Qualified SO to purchase 592,000 shares of common stock at exercise prices ranging from $1.00 to $5.61 which were granted prior to November 30, 2013.

Transactions in FY13	Number of Options	Weighted-Average Exercise Price Per Share	Weighted-Average Remaining Contractual Life
Outstanding, August 31, 2013	532,000	$1.82	3.95
Granted	100,000	$5.61
Exercised	(40,000)	$1.12
Outstanding, November 30, 2013	592,000	$2.51	4.02
Exercisable, November 30, 2013	366,600	$1.59	3.66

The fair value of the options, including both ISO and NQSO options, granted during the quarter ended November 30, 2013 is estimated at $130,781. The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions for FQE November 30, 2013: dividend yield of 3.14%, pre-vest forfeiture rate of 6.25%, expected volatility of 38.95%, risk-free interest rate of 1.36%, and expected life of 5.0 years.

Non-Qualified Stock Options (Non-Qualified SO)

As of November 30, 2013, the outside members of the Board of Directors hold options to purchase 45,600 shares of common stock at exercise prices ranging from $1.67 to $6.68, which were granted prior to November 30, 2013.

Transactions in FY13	Number of Options	Weighted-Average Exercise Price Per Share	Weighted-Average Remaining Contractual Life
Outstanding, August 31, 2013	48,600	$3.47	7.85
Exercised	(3,000)	$1.80
Outstanding, November 30, 2013	45,600	$3.92	7.78
Exercisable, November 30, 2013	25,200	$1.89	6.62

The weighted-average remaining contractual life of options outstanding issued under the Plan, both Qualified ISO and Non-Qualified ISO, was 4.28 years at November 30, 2013. The exercise prices for the options outstanding at November 30, 2012 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	313,100	3.87 years	$1.06	279,700	3.7 years	$1.06
$1.51	$3.00	31,600	6.36 years	$2.35	11,600	6.3 years	$2.11
$3.01	$4.50	156,900	3.90 years	$3.26	88,500	4.0 years	$3.18
$4.51	$6.68	136,000	5.16 years	$5.49	12,000	3.7 years	$5.59
		637,600	4.28 years	$2.61	391,800	3.9 years	$1.71