SHAREHOLDERS' EQUITY

12 Months Ended

Aug. 31, 2021

Equity [Abstract]

SHAREHOLDERS' EQUITY

NOTE 8 – SHAREHOLDERS' EQUITY

Shares Outstanding

Shares of common stock outstanding for the years ended August 31, 2021, 2020 and 2019 were as follows:

	August 31,
	2021		2020		2019
Common stock outstanding, beginning of year		19,923,277		17,591,834		17,416,445
Common stock issued during the year		218,244		2,331,443		175,389
Common stock outstanding, end of year		20,141,521		19,923,277		17,591,834

Dividends

The Company’s Board of Directors declared cash dividends during the years ended August 31, 2021, and 2020. The details of dividends paid are in the following tables:

(in thousands, except dividend per share)                                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
1/25/2021	2/01/2021	20,010	$	0.06		1,201
4/26/2021	5/03/2021	20,115	$	0.06		1,207
7/26/2021	8/02/2021	20,139	$	0.06		1,208
Total					$	4,811

(in thousands, except dividend per share)                                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 Plans

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.

Effective April 9, 2021, the Board of Directors approved, subject to shareholder approval, the adoption of a new 2021 Equity Incentive Plan (the “2021 Plan”) under which 1.3 million shares are reserved for issuance. The 2021 Plan, which was submitted for shareholder approval at our 2021 Special Meeting of Shareholders held on June 23, 2021, was approved by the shareholders. As a result, the 2021 Plan became effective as of April 9, 2021, and the Company may issue equity awards to permitted recipients thereunder. The maximum contractual life of the plan is ten years.

As of August 31, 2021, employees and directors held 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 $6.85 to $66.14 per share.

The following tables summarize information about stock options:

(in thousands, except per share and weighted-average amounts) Transactions During Fiscal Year 2021	Number of Options			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Life
Outstanding, August 31, 2020		1,224		$	17.76		6.79
Granted		226			57.60
Exercised		(204	)		12.53
Canceled/Forfeited		(62	)		29.83
Outstanding, August 31, 2021		1,184		$	25.63		6.47
Vested and Exercisable, August 31, 2021		619		$	13.36		4.95
Vested and Expected to Vest, August 31, 2021		1,173		$	25.69		6.47

(in thousands, except per share and weighted-average amounts) Transactions During Fiscal Year 2020	Number of Options			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Life
Outstanding, August 31, 2019		1,163		$	12.63		7.13
Granted		223			39.23
Exercised		(121	)		9.29
Canceled/Forfeited		(41	)		14.19
Outstanding, August 31, 2020		1,224		$	17.76		6.79
Vested and Exercisable, August 31, 2020		596		$	10.69		5.59
Vested and Expected to Vest, August 31, 2020		1,194		$	17.75		6.77

(in thousands, except per share and weighted-average amounts) Transactions During Fiscal Year 2019	Number of Options			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Life
Outstanding, August 31, 2018		1,135		$	9.44		7.31
Granted		264			22.78
Exercised		(167	)		7.15
Canceled/Forfeited		(69	)		12.17
Outstanding, August 31, 2019		1,163		$	12.63		7.13
Vested and Exercisable, August 31, 2019		515		$	8.57		6.09
Vested and Expected to Vest, August 31, 2019		1,102		$	12.39		7.07

The following table summarizes the Intrinsic Value of options outstanding and options exercisable:

(in thousands)	Intrinsic Value of Options Outstanding		Intrinsic Value of Options Exercisable		Intrinsic Value of Options Exercised
Fiscal Year 2019	$	27,313	$	14,195	$	3,224
Fiscal Year 2020	$	51,273	$	29,151	$	4,086
Fiscal Year 2021	$	25,705	$	19,373	$	11,554

The weighted-average remaining contractual life of options outstanding issued under the Plans, for both ISOs and NQSOs, was 6.47 years at August 31, 2021. The total fair value of non-vested stock options as of August 31, 2021, was $6.3 million and is amortizable over a weighted average period of 3.43 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 prices)	Fiscal Year 2021		Fiscal Year 2020
Estimated fair value of awards granted	$	5,092	$	2,997
Unvested Forfeiture Rate		0%		0%
Weighted average grant price	$	57.60	$	39.23
Weighted average market price	$	57.60	$	39.23
Weighted average volatility		40.49%		33.56%
Weighted average risk-free rate		0.64%		1.39%
Weighted average dividend yield		0.42%		0.65%
Weighted average expected life		6.63 years		6.67 years

The exercise prices for the options outstanding at August 31, 2021, ranged from $6.85 to $66.14, 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
$	6.85	$	8.28		144		3.00 years	$	6.85		144		3.00 years	$	6.85
$	8.29	$	10.03		183		4.52 years	$	9.72		183		4.52 years	$	9.72
$	10.04	$	12.20		221		5.48 years	$	10.05		162		5.48 years	$	10.05
$	12.21	$	28.16		184		6.66 years	$	20.37		66		5.88 years	$	20.25
$	28.17	$	57.04		230		8.40 years	$	37.22		51		8.08 years	$	34.19
$	57.05	$	66.14		222		9.17 years	$	58.77		13		8.88 years	$	61.84
					1,184		6.47 years	$	25.63		619		4.95 years	$	13.36

During the fiscal years ended August 31, 2021, 2020, and 2019, we issued 5,620, 7,205 and 8,686 shares of stock valued at $345 thousand, $290 thousand, and $212 thousand, respectively, to our non-management directors as compensation for board-related duties.

The balance of our par value common stock and additional paid-in capital as of August 31, 2021, was $10 thousand and $133.4 million, respectively, and the balance of our par value common stock and additional paid-in capital as of August 31, 2020 was $10 thousand and $128.5 million, respectively.