Note 5 - Stock-based Compensation

12 Months Ended

Aug. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5. STOCK-BASED COMPENSATION

Stock Options - The 2005 Stock Option Plan was approved and 600,000 shares of common stock were reserved for granting of options to officers, key employees and directors. The Plan has a term of 10 years and will expire in 2015. Stock options vest over a period of six months to three years.

Option transactions during the three years ended August 31, 2014 are summarized as follows:

	2005 Stock
	Option Plan
				Average
	Shares			Price
Outstanding at August 28, 2011		248,166		$	4.16
Granted		47,500			5.09
Forfeited		(3,500	)		4.99
Exercised		(27,666	)		3.02
Outstanding at August 26, 2012		264,500		$	4.44
Granted		68,750			6.41
Forfeited		(4,834	)		6.02
Lapsed		(4,000	)		5.39
Exercised		(64,500	)		4.20
Outstanding at August 25, 2013		259,916		$	4.97
Granted		70,250			6.23
Exercised		(26,915	)		4.63
Outstanding at August 31, 2014		303,251		$	5.30

Of the 26,915, 64,500 and 27,666 stock options from the 2005 Plan that were exercised in fiscal 2014, 2013 and 2012, 18,539, 45,628 and 17,265 shares were returned to the Company to pay for the exercise price and for related payroll withholding taxes, respectively.

The weighted fair value of options granted during the years ended August 31, 2014, August 25, 2013 and August 26, 2012 was $3.20, $3.83 and $2.86, respectively. The total intrinsic value of options exercised for the years August 31, 2014, August 25, 2013 and August 26, 2012 was $58,087, $183,075 and $111,922, respectively. The intrinsic value for options outstanding at August 31, 2014 was $698,985.

Cash received from option exercises for years ended August 31, 2014, August 25, 2013 and August 26, 2012 was $13,840, $21,560 and $0, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $26,063 and $32,384 for fiscal years 2013 and 2012, respectively.

As of August 31, 2014, there was $207,227 of total unearned compensation cost related to option-based compensation arrangements to be recognized over an expected weighted average of 1 year.

As of August 31, 2014, there were 15,000 shares with an exercise price of $2.13, 47,500 shares with exercise prices between $3.00 and $3.47 and 240,751 options outstanding with exercise prices between $4.93 and $7.45. At August 31, 2014, outstanding options had a weighted-average remaining contractual life of 6.8 years.

The number of options exercisable as of August 31, 2014, August 25, 2013 and August 26, 2012 were 228,747, 199,080 and 212,496, respectively, at weighted average share prices of $4.97, $4.64 and $4.24 per share, respectively. At August 31, 2014, there were 74,504 options that had not vested. The aggregate intrinsic values of options exercisable as of August 31, 2014, August 25, 2013, and August 26, 2012 was $601,419, $310,786 and $629,192, respectively, with weighted-average remaining contractual lives of 6.1, 5.9 and 6.4 years.

The Company also grants non-vested restricted shares as part of the 2005 Stock Option Plan. These shares typically vest over a three year period and sometimes contain required minimum threshold levels before the shares are earned. Non-vested restricted share transactions during the three years ended August 31, 2014 are as follows:

	Options			Average Price
Outstanding at August 28, 2011		54,143		$	5.08
Granted		38,662			5.52
Vested		(22,537	)		3.77
Forfeited		(19,661	)		6.77
Outstanding at August 26, 2012		50,607		$	5.35
Granted		443			6.09
Vested		(13,259	)		4.60
Forfeited		(23,850	)		5.78
Outstanding at August 25, 2013		13,941		$	5.34
Granted		197			6.35
Vested		(9,362	)		5.37
Outstanding at August 31, 2014		4,776		$	5.16

As of August 31, 2014, there was $7,885 in total unrecognized compensation cost related to non-vested restricted stock compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted average period of 1 year. The total intrinsic value of restricted stock options that vested during the year ended August 31, 2014 was $58,779.