Related Party Transactions

6 Months Ended

Feb. 28, 2017

Note 5. Related Party Transactions

The Company leases two buildings under operating lease agreements from a trust beneficially owned by the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder, Glen Ceiley (the “Trust”). During the three months ended February 28, 2017 and February 29, 2016, the Company incurred approximately $163,000 and $173,000, respectively, of expense related to these leases. During the six months ended February 28, 2017 and February 29, 2016, the Company incurred approximately $326,000 and $338,000, respectively, of expense related to these leases. Subsequent to the period ending February 28, 2017, the Company entered into a purchase agreement with the Trust on April 6, 2017 to purchase the building that houses the Company’s existing corporate headquarters and the distribution center located at 1500 North Lakeview Avenue in Anaheim, California.