STOCK OPTIONS

12 Months Ended

Sep. 29, 2018

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

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

11. STOCK OPTIONS

The Company has options outstanding under two stock option plans, the 2010 Stock Option Plan (the “2010 Plan”) and the 2016 Stock Option Plan (the “2016 Plan”). Options granted under both plans are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted and expire ten years after the date of grant.

On August 10, 2018, options to purchase 5,000 shares of common stock were granted at an exercise price of $20.36 per share and on September 4, 2018 options to purchase 20,000 shares of common stock were granted at an exercise price of $22.30 per share. Both grants are exercisable as to 50% of the shares commencing on the date of grant and as to an additional 50% commencing on the first anniversary of the date of grant. Such options had an aggregate grant date fair value of approximately $94,000. The Company did not grant any options during the fiscal year 2017. The Company generally issues new shares upon the exercise of employee stock options.

The fair value of each of the Company’s stock options is estimated on the date of grant using a Black-Scholes option-pricing model that uses assumptions that relate to the expected volatility of the Company’s common stock, the expected dividend yield of the Company’s stock, the expected life of the options and the risk free interest rate. The assumptions used for the 2018 grant include a risk free interest rates of 2.87% - 2.90%, volatility of 30.7%, a dividend yield of 5.6% and an expected life of 10 years.

During the year ended September 29, 2018, options to purchase 26,050 shares of common stock at a weighted average price of $18.60 per share expired unexercised or were forfeited. During the year ended September 30, 2017, options to purchase 90,000 shares of common stock at an exercise price of $32.15 per share expired unexercised. No options were granted during the year ended September 30, 2017. The following table summarizes stock option activity under all plans:

	2018								2017
	Shares			Weighted Average Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding, beginning of period		421,800		$	17.86	5.2 Years				518,608		$	20.29
Options:
Granted		25,000		$	21.91					-
Exercised		(42,000	)	$	14.39					(6,808	)	$	17.15
Canceled or expired		(26,050	)	$	18.60					(90,000	)	$	32.15
Outstanding and expected to vest, end of period		378,750		$	18.46	4.8 Years	$	1,824,400		421,800		$	17.86	$	2,745,156
Exercisable, end of period		366,250		$	18.35	4.6 Years	$	1,807,300		421,800		$	17.86	$	2,745,156
Shares available for future grant		475,000								500,000

Compensation cost charged to operations for the fiscal years ended September 29, 2018 and September 30, 2017 for share-based compensation programs was approximately $47,000 and $0, respectively. The compensation cost recognized is classified as a general and administrative expense in the Consolidated Statements of Income.

As of September 29, 2018, there was approximately $47,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of one year.

The following table summarizes information about stock options outstanding as of September 29, 2018:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining contractual life (in years)		Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining contractual life (in years)
$12.04		35,000	$	12.04		0.6		35,000	$	12.04		0.6
$14.40		141,750	$	14.40		3.7		141,750	$	14.40		3.7
$22.50		177,000	$	22.50		5.7		177,000	$	22.50		5.7
$20.26 - $22.30		25,000	$	21.91		9.9		12,500	$	21.91		9.9
		378,750	$	18.46		4.8		366,250	$	18.35		4.6

The Company also maintains a Section 162(m) Cash Bonus Plan. Under the Section 162(m) Cash Bonus Plan, compensation paid in excess of $1,000,000 to any employee who is the chief executive officer, or one of the three highest paid executive officers on the last day of that tax year (other than the chief executive officer or the chief financial officer) will meet certain “performance-based” requirements of Section 162(m) and the related IRS regulations in order for it to be tax deductible.