Quarterly report pursuant to Section 13 or 15(d)

SHAREHOLDERS' EQUITY

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SHAREHOLDERS' EQUITY
 3 Months Ended
Nov. 30, 2013
SHAREHOLDERS' EQUITY:  
SHAREHOLDERS' EQUITY

NOTE 5 – SHAREHOLDERS’ EQUITY

 

The Company maintains the 2004 Incentive Plan (the “Equity Plan”), which was approved by shareholders in April 2004. Executives, eligible employees, consultants and non-employee directors are eligible to receive options and stock grants pursuant to the Equity Plan. Pursuant to the Equity Plan, options to purchase shares of stock and restricted stock awards can be granted with exercise prices, vesting conditions and other performance criteria determined by the Compensation Committee of the Board. The Company initially reserved 1.6 million shares of common stock for issuance under the Equity Plan. At November 30, 2013, the Company had 1,218,311 common shares remaining that can be granted to eligible participants pursuant to the Equity Plan. The equity plan expires in April 2014.

 

The following table summarizes the stock option activity for the Equity Plan for the three months ended November 30, 2013:

 

  Number of Options   Weighted-Average Exercise Price  

Weighted-

Average Remaining Contractual Term

    

Appropriate

Aggressive Instrinsic

Value
Oustanding at August 31, 2013     347,500   $ 5.62                
Granted     —     —                  
  Exercised     —     —                  
Forfeited or expired     —     —                  
Outstanding at November 30, 2013     347,500     5.62       6.69     $ 715,050
Options exercisable at November 30, 2013     215,000   $ 5.90       4.56     $ 435,715

 

The following table summarizes the activity and value of non-vested options as of and for the three months ended November 30, 2013:

 

 

Number of

Options

  

Weighted-

Average Grant

Date Fair

Value
Non-vested options oustanding at beginning of period     132,500     $ 3.80  
Granted     —         —    
Vested     —         —    
Forfeited     —         —    
Options not vested at November 30, 2013     132,500     $ 3.80  

  

All non-vested options are expected to vest.

 

Stock-based compensation expense was $54,800 and $10,600 for the three months ended November 30, 2013 and 2012, respectively.

  

At November 30, 2013, the Company had unrecognized expenses relating to non-vested options that are expected to vest totaling $398,900 which have a weighted average life of less than three years. The Company has not recorded any excess tax benefits to additional paid-in capital.