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a.) |
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With respect to options granted to an employee or service provider who, at the time of grant owns stock representing more than 10% of the voting power of all classes of stock of the Company; the per share exercise price shall be no less than 110% of the fair market value on the date of grant. |
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b.) |
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With respect to options granted to an employee or service provider other than described in the preceding paragraph, the exercise price shall be no less than 100% for incentive stock options and 85% for non-statutory stock options of the fair market value on the date of grant. |
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No options have been granted, exercised, canceled or forfeited for the last five fiscal years. |
The following balances are active as of October 31, 2008 (exercise prices stated on a per share basis):
|
|
|
|
|
|
|
Options Exercisable |
|
|
|
|
|
| Options Outstanding |
|
|
|
Weighted average |
|
Weighted average |
|
|
|
|
Weighted average |
| Exercise price |
|
Shares |
|
remaining life (years) |
|
exercise price |
|
Shares |
|
exercise price |
| $ |
10 |
|
250,000 |
|
.5 |
|
$ |
10 |
|
250,000 |
|
$ |
10 |
The following balances are active as of November 2, 2007:
|
|
|
|
|
|
|
Options Exercisable |
|
|
|
|
|
| Options Outstanding |
|
|
|
Weighted average |
|
Weighted average |
|
|
|
|
Weighted average |
| Exercise price |
|
Shares |
|
remaining life (years) |
|
exercise price |
|
Shares |
|
exercise price |
| $ |
10 |
|
250,000 |
|
1.5 |
|
$ |
10 |
|
250,000 |
|
$ |
10 |
401(K) Plan for Sales, Administrative, Supervisory and Certain Other Employees
During the fiscal year ended November 3, 2006, the Company implemented a qualified 401(K) retirement plan (the “Plan”) for its sales, administrative, supervisory and certain other employees. During fiscal years 2008 and 2007, the Company made total contributions to the Plan in the amounts of $414 and $470, respectively.
NOTE 4- Income Taxes:
The provision (benefit) for taxes on income includes the following:
|
|
2008 |
|
2007 |
|
| Current: |
|
|
|
|
|
|
|
| Federal |
|
$ |
1 |
|
$ |
37 |
|
| State |
|
|
70 |
|
|
136 |
|
|
|
|
71 |
|
|
173 |
|
| |
| Deferred: |
|
|
|
|
|
|
|
| Federal |
|
|
5,557 |
|
|
(432 |
) |
| State |
|
|
951 |
|
|
(122 |
) |
|
|
|
6,508 |
|
|
(554 |
) |
|
|
$ |
6,579 |
|
$ |
(381 |
) |
The total tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes as follows:
|
|
2008 |
|
|
2007 |
|
| (Benefit) provision for federal income taxes at the applicable statutory rate |
|
$ |
(1,995 |
) |
|
$ |
(229 |
) |
| (Decrease) increase in provision resulting from state income taxes, net of federal |
|
|
|
|
|
|
|
|
| income tax benefit |
|
|
(372 |
) |
|
|
(47 |
) |
| Research & development tax credit |
|
|
(15 |
) |
|
|
(25 |
) |
| Non-taxable life insurance gain |
|
|
315 |
|
|
|
(211 |
) |
| Valuation allowance |
|
|
8,615 |
|
|
|
--- |
|
| Other, net |
|
|
31 |
|
|
|
131 |
|
|
|
$ |
6,579 |
|
|
$ |
(381 |
) |
|
