SHAREHOLDERS’ EQUITY

3 Months Ended

Nov. 30, 2020

Equity [Abstract]

SHAREHOLDERS’ EQUITY

NOTE 8: SHAREHOLDERS’ EQUITY

Dividend

The Company’s Board of Directors declared cash dividends during the first quarter of fiscal year 2021 and during fiscal year 2020. The details of the dividends paid are in the following tables:

(in thousands, except dividend per share amounts)	Fiscal Year 2021
Record Date		Distribution Date	Number of Shares Outstanding on Record Date		Dividend per Share		Total Amount
10/26/2020		11/02/2020		19,924	$	0.06	$	1,195
Total							$	1,195

(in thousands, except dividend per share amounts)	Fiscal Year 2020
Record Date		Distribution Date	Number of Shares Outstanding on Record Date		Dividend per Share		Total Amount
10/25/2019		11/01/2019		17,606	$	0.06	$	1,056
1/27/2020		2/03/2020		17,646	$	0.06		1,059
4/24/2020		5/01/2020		17,769	$	0.06		1,066
7/27/2020		8/03/2020		17,820	$	0.06		1,069
Total							$	4,250

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 1.0 million shares of common stock were reserved for issuance. On February 25, 2014 the shareholders approved an additional 1.0 million shares increasing the total number of shares available to be granted under the 2007 Stock Option Plan to 2.0 million. 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 1.0 million shares of common stock were reserved for issuance. This plan will terminate in December 2026 by its term.

On November 20, 2020, the Board of Directors adopted an amendment to the 2017 Equity Incentive Plan to increase the number of shares reserved for issuance under the plan from 1.0 million shares of common stock to 1.75 million shares of common stock. The amendment is subject to shareholder approval at the Company’s upcoming annual shareholder meeting.

As of November 30, 2020, employees and directors hold Qualified Incentive Stock Options (“ISOs”) and Non-Qualified Stock Options (“NQSOs) to purchase 1.2 million shares of common stock at exercise prices ranging from $6.75 to $61.84.

The following table summarizes information about stock options:

(in thousands, except per share and weighted-average amounts)	Number of			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual
Transactions during the three months ended November 30, 2020	Options			Per Share		Life
Outstanding, August 31, 2020		1,224		$	17.76		6.79
Granted		26		$	59.91
Exercised		(34	)	$	14.04
Cancelled/Forfeited		(11	)	$	24.18
Outstanding, November 30, 2020		1,205		$	18.73		6.62
Exercisable, November 30, 2020		583		$	11.16		5.35

The weighted-average remaining contractual life of options outstanding issued under the Plan, both ISOs and NQSOs, was 6.62 years at November 30, 2020. The total fair value of nonvested stock options as of November 30, 2020 was $19.1 million and is amortizable over a weighted average period of 3.18 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.

The following table summarizes the fair value of the options, including both ISOs and NQSOs, granted during the current fiscal year 2021 and fiscal year 2020:

(in thousands except pricing)	Three months ended, November 30 2020		Fiscal Year 2020
Estimated fair value of awards granted	$	560	$	2,997
Unvested forfeiture rate		0%		0%
Weighted average grant price	$	59.91	$	39.23
Weighted average market price	$	59.91	$	39.23
Weighted average volatility		36.35%		33.56%
Weighted average risk-free rate		0.47%		1.39%
Weighted average dividend yield		0.40%		0.65%
Weighted average expected life		6.65 years		6.67 years

The exercise prices for the options outstanding at November 30, 2020 ranged from $6.75 to $61.84, and the information relating to these options is as follows:

(in thousands except prices)
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		169	3.77 years	$	6.85		169		3.77 years	$	6.85
$	8.01	$	16.00		535	5.80 years	$	9.99		337		5.74 years	$	9.99
$	16.01	$	24.00		208	7.51 years	$	20.42		49		6.19 years	$	20.61
$	24.01	$	38.00		204	8.90 years	$	33.46		28		8.70 years	$	34.83
$	38.01	$	52.00		20	9.31 years	$	38.64		–		–	$	–
$	52.01	$	61.84		69	9.68 years	$	61.10		–		–	$	–
					1,205	6.62 years	$	18.73		583		5.35 years	$	11.16

During the three months ended November 30, 2020 the company issued 1,275 shares of stock to nonmanagement directors of the Company valued at $83 thousand as compensation for services rendered to the Company.

In August 2020, the company closed an underwritten public offering of 2,090,909 shares of its common stock to the public at $55.00 per share, which included the full exercise of the underwriters’ option to purchase 272,727 additional shares of common stock. The aggregate gross proceeds to the company from this offering were approximately $115 million, before deducting underwriting discounts and commissions; net proceeds were approximately $107.7 million. The offering was made pursuant to the Company’s automatic shelf registration statement on Form S-3 filed with the SEC on July 9, 2020.

The balance of par value common stock and additional paid in capital as of November 30, 2020 was $10 thousand and $129.2 million, respectively.