SHAREHOLDERS’ EQUITY

6 Months Ended

Feb. 28, 2022

Equity [Abstract]

SHAREHOLDERS’ EQUITY

NOTE 7: SHAREHOLDERS’ EQUITY

Shares Outstanding

Shares of common stock outstanding for the three and six months ended February 28, 2022 and 2021 were as follows: 

	Three Months Ended February 28,				Six Months Ended February 28,
	2022		2021		2022		2021
Common stock outstanding, beginning of the period		20,168,796		19,958,760		20,141,521		19,923,277
Common stock issued during the period		12,988		100,768		40,263		136,251
Common stock outstanding, end of the period		20,181,784		20,059,528		20,181,784		20,059,528

Dividends

Our Board of Directors declared cash dividends during fiscal years 2022 and 2021. The details of the dividends paid are in the following tables:  

(in thousands, except dividend per share)		Fiscal Year 2022
Record Date	Distribution Date	Number of Shares Outstanding on Record Date		Dividend per Share		Total Amount
10/25/2021	11/01/2021		20,148	$	0.06		1,209
1/31/2022	2/07/2022		20,178	$	0.06		1,211
Total						$	2,420

(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

Stock Option Plans

On February 23, 2007, the Company’s Board of Directors adopted, and its shareholders approved, the 2007 Stock Option Plan (the “2007 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 Plan to 2.0 million. This plan terminated in February 2017 by its terms.

On December 23, 2016, the Company’s Board of Directors adopted, and on February 23, 2017, its shareholders approved, the Company’s 2017 Equity Incentive Plan (the “2017 Plan”), under which a total of 1.0 million shares of common stock were reserved for issuance. The 2017 Plan will terminate in December 2026. The 2017 Plan was replaced by the Company’s 2021 Plan (as defined below), and as a result, no further issuances of shares may be made under the 2017 Plan.

On April 9, 2021, the Company’s Board of Directors adopted, and on June 23, 2021, its shareholders approved, the Company’s 2021 Equity Incentive Plan (the “2021 Plan,” and together with the 2007 Plan and 2017 Plan, the “Plans”), under which 1.3 million shares of common stock were reserved for issuance. 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 February 28, 2022, employees and directors hold Incentive Stock Options (“ISOs”) and Non-Qualified Stock Options (“NQSOs”) to purchase approximately 1.3 million shares of common stock at exercise prices ranging from $6.85 to $66.14.

The following table summarizes information about stock options:  

(in thousands, except per share and weighted-average amounts) Transactions during the six months ended February 28, 2022	Number of Options			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (Years)
Outstanding, August 31, 2021		1,184		$	25.63		6.47
Granted		189		$	39.22
Exercised		(44	)	$	17.48
Cancelled/Forfeited		(41	)	$	39.72
Outstanding, February 28, 2022		1,288		$	27.45		6.47
Exercisable, February 28, 2022		751		$	16.81		4.93

The total fair value of nonvested stock options as of February 28, 2022 was $7.6 million and is amortizable over a weighted average period of 3.36 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 six months ended February 28, 2022 and fiscal year 2021:  

(in thousands except pricing)	Six Months Ended February 28, 2022		Fiscal Year 2021
Estimated fair value of awards granted	$	3,042	$	5,092
Unvested forfeiture rate		0%		0%
Weighted average grant price	$	39.22	$	57.60
Weighted average market price	$	39.22	$	57.60
Weighted average volatility		41.91%		40.49%
Weighted average risk-free rate		1.44%		0.64%
Weighted average dividend yield		0.61%		0.42%
Weighted average expected life		6.60 years		6.63 years

The exercise prices for the options outstanding at February 28, 2022 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	$	9.77		304		3.29 years	$	8.37		304		3.29 years	$	8.37
$	9.78	$	18.76		224		4.85 years	$	10.35		223		4.84 years	$	10.33
$	18.77	$	33.40		268		6.91 years	$	25.12		135		6.54 years	$	24.16
$	33.41	$	47.63		246		9.13 years	$	38.35		31		7.53 years	$	35.56
$	47.64	$	66.14		246		8.73 years	$	58.23		58		8.64 years	$	58.88
					1,288		6.47 years	$	27.45		751		4.93 years	$	16.81

During the three and six months ended February 28, 2022 the Company issued 1,716 and 3,451 shares of stock valued at $88 thousand and $176 thousand, respectively, to our non-management directors as compensation for board-related duties.

The balance of par value common stock and additional paid-in capital as of February 28, 2022, was $10 thousand and $135.5 million, respectively.