6. SHAREHOLDERS' EQUITY

6 Months Ended

Feb. 28, 2017

Equity [Abstract]

SHAREHOLDERS' EQUITY

Dividend

The Company’s Board of Directors declared cash dividends during fiscal years 2017 and 2016. The details of the dividends paid are in the following tables:

FY2017
Record Date	Distribution Date	Number of Shares Outstanding on Record Date		Dividend per Share		Total Amount
11/10/2016	11/17/2016	17,226,478	$	0.05	$	861,324
1/30/2017	2/6/2017	17,233,758	$	0.05		861,688
Total					$	1,723,012

FY2016
Record Date	Distribution Date	Number of Shares Outstanding on Record Date		Dividend per Share		Total Amount
11/09/2015	11/16/2015	16,996,001	$	0.05	$	849,800
1/29/2016	02/05/2016	17,018,001	$	0.05	$	850,900
5/02/2016	5/09/2016	17,029,051	$	0.05	$	851,475
8/11/2016	8/18/2016	17,221,978	$	0.05	$	861,099
Total					$	3,413,274

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. On February 25, 2014 the shareholders approved an additional 1,000,000 shares increasing the total number of shares that may be granted under the Option Plan to 2,000,000. This plan terminated in February 2017 by its term.

On December 23, 2016 the Board of Directors adopted, and on February 23, 2017 the shareholders approved, the 2017 Equity Incentive Plan under which a total of 1,000,000 shares of common stock has been reserved for issuance. This plan will terminate in December 2026. A copy of the 2017 Equity Incentive Plan is attached to this filing.

Qualified Incentive Stock Options (Qualified ISO)

As of February 28, 2017 employees hold Qualified ISO to purchase 1,286,272 shares of common stock at exercise prices ranging from $1.00 to $10.06.

Transactions in FY17	Number of Options			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Life
Outstanding, August 31, 2016		894,750		$	7.54		7.72
Granted		404,582		$	10.05
Exercised		(7,760	)	$	6.85
Cancelled/Forfeited		(5,300	)	$	9.44
Outstanding, February 28, 2017		1,286,272		$	8.32		8.08
Exercisable, February 28, 2017		366,520		$	6.01		5.49

Non-Qualified Stock Options (Non-Qualified ISO)

As of February 28, 2017 the outside members of the Board of Directors and certain employees hold non-qualified options to purchase 47,168 shares of common stock at exercise prices ranging from $4.46 to $10.06.

Transactions in FY17	Number of Options			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Life
Outstanding, August 31, 2016		52,750		$	6.88		8.07
Granted		17,418		$	10.05
Exercised		(9,500	)	$	5.88
Cancelled/Forfeited		(13,500	)	$	7.43
Outstanding, February 28, 2017		47,168		$	8.10		8.86
Exercisable, February 28, 2017		13,000		$	5.78		7.16

The weighted-average remaining contractual life of options outstanding issued under the Plan, both Qualified ISO and Non-Qualified SO, was 8.11 years at February 28, 2017. The exercise prices for the options outstanding at February 28, 2017 ranged from $1.00 to $10.06, 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		67,000		2.10 years	$	1.00		67,000		2.10 years	$	1.00
$	3.01	$	4.50		20,000		1.36 years	$	3.16		20,000		1.36 years	$	3.16
$	4.51	$	6.00		70,000		1.91 years	$	5.52		70,000		1.91 years	$	5.52
$	6.01	$	7.50		344,940		7.54 years	$	6.86		140,220		7.55 years	$	6.86
$	7.51	$	9.00		10,000		9.50 years	$	8.62		0		–	$	–
$	9.01	$	10.06		821,500		9.51 years	$	9.89		82,300		9.04 years	$	9.72
					1,333,440		8.11 years	$	8.32		379,520		5.54 years	$	6.01