Shareholders' Equity

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

NOTE 7 - SHAREHOLDERS’ EQUITY

a. Share capital:

The Company’s ordinary shares are traded in the United States on the Nasdaq Global Market, under the symbol MNDO.

b. Treasury shares:

During the period between September 2008 and December 2009, the Company has purchased an aggregate amount of 3,165,092 ordinary shares for a total consideration of approximately $2.8 million. Currently, the Company does not have an active buyback plan. As of December 31, 2021, the remaining treasury shares are 1,602,684 which amounted to $1,094 thousand.

c. Dividend:

Dividends paid per share in the years ended December 31, 2021, 2020 and 2019 were $0.26, $0.24 and $0.26, respectively.

The Company paid dividends to its shareholders in the amounts of $5.2 million, $4.8 million and $5.1 million during the years ended December 31, 2021, 2020 and 2019, respectively.

d. Stock option plan:

In 2011, the Board of Directors and the Company’s shareholders approved a share incentive plan (the “2011 Share Incentive Plan”). Under the 2011 Share Incentive Plan, options for up to 1,800,000 ordinary shares of NIS 0.01 par value can be granted to employees, directors, consultants or contractors of the Company and its subsidiaries.

Each option can be exercised to purchase one ordinary share. Immediately upon issuance, the ordinary shares issuable upon the exercise of the options will confer on holders the same rights as the other ordinary shares.

The Board of Directors determines the exercise price and the vesting period of the options granted. The outstanding options granted under the abovementioned plan vest over 2-4 years. Options not exercised will expire five years after the day of grant.

The compensation costs charged against income for the 2011 Share Incentive Plan during the years ended December 31, 2021, 2020 and 2019 were approximately $171 thousand, $213 thousand and $200 thousand, respectively.

Under Section 102 of the Israeli Income Tax Ordinance, pursuant to an election made by the Company thereunder, Israeli employees (except for employees who are deemed “Controlling Members” under the Israeli Income Tax Ordinance) are subject to a lower tax rate onpart of the capital gains accruing to them in respect of Section 102 awards. However, the Company is not allowed to claim as an expense for tax purposes the amounts credited to such employees.

1) The following is a summary of the status of the 2011 Share Incentive Plan as of December 31, 2021, 2020 and 2019, and changes during the years ended on those dates:

	Years Ended December 31,
	2 0 2 1					2 0 2 0					2 0 1 9
	Number			Weighted average exercise price		Number			Weighted average exercise price		Number			Weighted average exercise price
Options outstanding at the beginning of year		266,500		$	0.003		352,000		$	0.23		674,200		$	1.460
Changes during year:
Granted (a)		172,000		$	0.003		64,000		$	0.003		156,000		$	0.003
Exercised		(71,500	)	$	0.003		(89,500	)	$	0.003		(108,200	)	$	0.003
Forfeited		(96,500	)	$	0.003		(56,000	)	$	1.233		(90,000	)	$	0.003
Expired		(1,000	)	$	0.003		(4,000	)	$	2.688		(280,000	)	$	2.947
Options outstanding at the end of year		269,500		$	0.003		266,500		$	0.003		352,000		$	0.23
Options exercisable at the end of year		30,000		$	0.003		23,000		$	0.003		34,000		$	1.49
Weighted average grant date fair value of options granted during the year (b)				$	1.79				$	1.32				$	1.31

(a) In the years ended December 31, 2021 and 2020 and 2019, the options were granted with an exercise price equal to par value of NIS 0.01 ($0.003).

(b) The fair value of each stock option granted is computed on the date of grant according to the Black-Scholes option pricing model with the following assumptions:

	Years Ended December 31,
	2 0 2 1			2 0 2 0			2 0 1 9
Dividend yield		8.73	%		10.3	%		11	%
Expected volatility*		34	%		22	%		25	%
Average risk-free interest rate		0.81	%		0.53	%		1.86	%
Expected average term - in years		3.88			3.88			3.88

* Volatility is based on historical volatility of the Company’s share price for periods matching the expected term of the option until exercise.

As of December 31, 2021, there were approximately $405 thousand of total unrecognized compensation costs, net of expected forfeitures, related to unvested share-based compensation awards granted under the 2011 Share Incentive Plan. The costs are expected to be recognized over a weighted average period of 1.49 years.

2) The following table summarizes information about options outstanding and exercisable as of December 31, 2021:

		Options Outstanding						Options Exercisable
Range of exercise prices		Number outstanding at December 31, 2021		Weighted average remaining contractual life		Weighted average exercise price		Number exercisable at December 31, 2021		Weighted average remaining contractual life		Weighted average exercise price
				Years						Years
$	0.003		269,500		3.41	$	0.003		30,000		2.04	$	0.003

The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 were approximately $235 thousand, $212 thousand and $115 thousand, respectively. As of December 31, 2021 the aggregate intrinsic value of the outstanding options is $837 thousand, and the aggregate intrinsic value of the exercisable options is $93 thousand.