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7. SHAREHOLDERS' EQUITY
6 Months Ended
Feb. 29, 2020
Equity [Abstract]  
SHAREHOLDERS' EQUITY

NOTE 7: SHAREHOLDERS’ EQUITY

 

Dividend

The Company’s Board of Directors declared cash dividends during fiscal years 2020 and 2019. The details of the dividends paid are  in the following tables:

 

FY2020
Record Date   Distribution Date   Number of Shares
Outstanding on
Record Date
    Dividend per
Share
    Total
Amount
 
10/25/2019   11/01/2019     17,606,314     $ 0.06     $ 1,056,379  
1/27/2020   2/03/2020     17,645,639     $ 0.06       1,058,740  
Total                       $ 2,115,119  

 

FY2019
Record Date   Distribution Date   Number of Shares
Outstanding on
Record Date
    Dividend per
Share
    Total
Amount
 
11/01/2018   11/08/2018     17,417,875     $ 0.06     $ 1,045,073  
1/25/2019   2/1/2019     17,481,450     $ 0.06       1,048,887  
4/24/2019   5/1/2019     17,515,228     $ 0.06       1,050,914  
7/25/2019   8/1/2019     17,536,454     $ 0.06       1,052,181  
Total                       $ 4,197,055  

   

Stock Option Plan

 

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.

  

As of February 29, 2020, employees and directors hold stock options to purchase 1,251,564 shares of common stock at exercise prices ranging from $6.75 to $38.81.

  

The following table summarizes information about stock options:

 

Transactions in FY20   Number of
Options
    Weighted-
Average
Exercise
Price
Per Share
    Weighted-
Average
Remaining
Contractual
Life
 
Outstanding, August 31, 2019     1,163,259     $ 12.63       7.13  
Granted     168,500     $ 33.51          
Exercised     (52,360 )   $ 7.75          
Cancelled/Forfeited     (27,835 )   $ 13.04          
Expired         $          
Outstanding, February 29, 2020     1,251,564     $ 15.64       7.11  
Exercisable, February 29, 2020     651,889     $ 10.00       6.02  

 

The weighted-average remaining contractual life of options outstanding issued under the Plan, both Qualified ISO and Non-Qualified SO, was 7.11 years at February 29, 2020. The total fair value of non-vested stock options as of February 29, 2020 was $6,712,000 and is amortizable over a weighted average period of 3.59 years.

 

 The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which do not have vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. Because our stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its stock options.

 

The following table summarizes the fair value of the options, including both ISOs and NQSOs, granted during the current fiscal year 2020 and fiscal year 2019:

 

   YTD FY 2020   FY 2019 
Estimated fair value of awards granted  $1,851,815   $1,928,820 
Unvested Forfeiture Rate   0%    6.20% 
Weighted average grant price  $33.51   $22.78 
Weighted average market price  $33.51   $22.69 
Weighted average volatility   32.13%    31.61% 
Weighted average risk-free rate   1.69%    2.59% 
Weighted average dividend yield   0.72%    1.10% 
Weighted average expected life   6.68 years    6.64 years 

 

The exercise prices for the options outstanding at February 29, 2020 ranged from $6.75 to $38.81, 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
 
$ 6.75     $ 8.00       192,353       4.52 years     $ 6.84       192,353       4.52 years     $ 6.85  
$ 8.01     $ 16.00       602,161       6.54 years     $ 9.97       401,606       6.47 years     $ 9.92  
$ 16.01     $ 24.00       241,550       8.30 years     $ 20.68       57,930       7.86 years     $ 21.00  
$ 24.01     $ 38.81       215,500       9.66 years     $ 33.67       0       0 years     $ 0  
                  1,251,564       7.11 years     $ 15.64       651,889       6.02 years     $ 10.00  

 

During the three and six-month periods ended February 29, 2020, the company issued 2,225 and 4,270 shares of stock to non-management directors of the Company valued at $72,490 and $144,903 respectively as compensation for services rendered to the Company.