Quarterly report pursuant to Section 13 or 15(d)

SHAREHOLDERS' EQUITY

v3.19.2
SHAREHOLDERS' EQUITY
 9 Months Ended
May 31, 2019
SHAREHOLDERS' EQUITY [Abstract]  
SHAREHOLDERS' EQUITY
NOTE 5 – SHAREHOLDERS’ EQUITY

The Company maintains the 2014 Equity Incentive Plan (the “2014 Equity Plan”), which was approved by shareholders in January 2014 and became effective on April 12, 2014. Executives, eligible employees, consultants and non-employee directors are eligible to receive options and stock grants pursuant to the 2014 Equity Plan. Pursuant to the 2014 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 of directors. The Company has reserved 1.6 million shares of common stock for issuance under the 2014 Equity Plan. The Company began awarding options under the 2014 Equity Plan in January 2015. Prior to the effective date of the 2014 Equity Plan, the Company granted stock awards to eligible participants under its 2004 Incentive Plan (the “2004 Incentive Plan”), which expired on April 11, 2014. No additional awards may be granted pursuant to the 2004 Incentive Plan; however, awards outstanding as of April 11, 2014, will continue to vest and expire and may be exercised in accordance with the terms of the 2004 Incentive Plan.

The following table summarizes the combined stock option activity for the 2004 Incentive Plan and 2014 Equity Plan for the nine months ended May 31, 2019:

   
Number
of Options
    
Weighted Average
Exercise Price
    
Weighted Average
Remaining
Contractual Term
    
Approximate
Aggregate
Intrinsic Value
  
Outstanding at August 31, 2018
    
535,500
    
$
5.31
      
6.04
    
$
3,180,990
  
Granted (1)
    
82,500
    
$
10.48
                  
Exercised
    
(37,500
)
  
$
3.06
                  
Forfeited or expired
    
—
    
$
—
                  
Outstanding at May 31, 2019
    
580,500
    
$
6.19
      
6.50
    
$
1,962,630
  
                                 
Options exercisable at May 31, 2019
    
428,000
    
$
5.30
      
5.65
    
$
1,761,260
  

(1)
Includes 50,000 shares granted to Mr. Harding on September 26, 2018 and 32,500 total shares granted to non-employee directors on January 16, 2019.

The following table summarizes the combined activity and value of non-vested options under the 2004 Equity Plan and 2014 Incentive Plan as of and for the nine months ended May 31, 2019:

   
Number
of Options
    
Weighted Average
Grant Date
Fair Value
  
Non-vested options outstanding at August 31, 2018
    
155,833
    
$
3.76
  
Granted
    
82,500
      
4.60
  
Vested
    
(85,834
)
    
3.46
  
Forfeited
    
—
      
—
  
Non-vested options outstanding at May 31, 2019
    
152,499
    
$
4.03
  

All non-vested options are expected to vest.

Stock-based compensation expense was $96,100 and $83,600 for the three months ended May 31, 2019 and 2018, respectively.  Stock-based compensation expense was $257,800 and $241,200 for the nine months ended May 31, 2019 and 2018, respectively.

At May 31, 2019, the Company had unrecognized compensation expenses totaling $362,400 relating to non-vested options that are expected to vest. The weighted-average period over which these options are expected to vest is approximately one year.