Stock-based Compensation

12 Months Ended

Aug. 28, 2016

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

Stock-based Compensation

5. STOCK-BASED COMPENSATION

Stock Options - The 2005 Stock Option Plan was approved and 800,000 shares of common stock were reserved for granting of options to officers, key employees and directors. The Plan has been renewed by the Company’s shareholders for a term of 10 years and will expire in 2025. Stock options vest over a period of six months to three years.

Option transactions during the three years ended August 28, 2016 are summarized as follows:

	2005 Stock Option Plan
	Shares			Average Price
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
Granted		78,750			6.01
Exercised		(29,500	)		3.13
Outstanding at August 30, 2015		352,501		$	5.64
Granted		96,500			4.43
Forfeit		(26,000	)		5.63
Lapsed		(8,000	)		6.09
Exercised		-			-
Outstanding at August 28, 2016		415.001			$ 5 . 3 5

Of the 29,500 and 26,915 stock options from the 2005 Plan that were exercised in fiscal 2015and 2014, 18,443 and 18,539 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 28, 2016, August 30, 2015 and August 31, 2014 was $1.05, $2.57 and $3.20, respectively. The total intrinsic value of options exercised for the years August 30, 2015 and August 30, 2014 was $85,705 and $58,087, respectively. The intrinsic value for all options outstanding at August 28, 2016 was $0.

Cash received from option exercises for years ended August 30, 2015 and August 31, 2014 was $8,520 and $13,840, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $15,885 for fiscal year 2015.

As of August 28, 2016, there was $111,299 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 28, 2016, there were 8,000 shares with an exercise price of $2.13, 25,000 shares with exercise prices between $3.00 and $3.47, 96,500 options outstanding with exercise prices between $4.37 and $4.44, 78,500 options outstanding with exercise prices between $4.93 and $5.39 and 207,001 with exercise prices between $5.84 and $7.45. At August 28, 2016, outstanding options had a weighted-average remaining contractual life of 6.4 years.

The number of options exercisable as of August 28, 2016, August 30, 2015 and August 31, 2014 were 318,830, 267,748 and 228,747, respectively, at weighted average share prices of $5.46, $5.49 and $4.97 per share, respectively. At August 26, 2016, there were 96,171 options that had not vested. The aggregate intrinsic values of options exercisable as of August 28,2016, August 30, 2015 and August 31, 2014 was $0, $33,059 and $601,419, respectively, with weighted-average remaining contractual lives of 5.8, 6.3 and 6.1 years.

The Company can also grant 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 28, 2016 are as follows:

	Options			Average Price
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
Granted		54			6.09
Vested		(4,830	)		5.32
Outstanding at August 30, 2015		-		$	-
Granted		-			-
Vested		-			-
Outstanding at August 28, 2016		-		$	-

As of August 28, 2016, there was $0 in total unrecognized compensation cost related to non-vested restricted stock compensation arrangements granted under the Plan.