The Company has share awards outstanding under two share-based compensation plans (the “Equity Plans”). The Company believes that such awards generally align the interests of its employees with those of its shareholders. Under the shareholder-approved 2006 Equity Incentive Plan (the “2006 Plan”) the Board of Directors was authorized to grant option awards for up to approximately 1.1 million common shares. On August 13, 2015, the Company’s shareholders approved the Nicholas Financial, Inc. Omnibus Incentive Plan (the “2015 Plan”) for employees and non-employee directors. Under the 2015 Plan, the Board of Directors is authorized to grant total share awards for up to 750,000 common shares. Awards under the 2006 Plan will continue to be governed by the terms of that plan. The 2015 Plan replaced the 2006 Plan; accordingly, no additional option awards may be granted under the 2006 Plan. In addition to option awards, the 2015 Plan provides for restricted stock, restricted stock units, performance shares, performance units, and other equity-based compensation.

Option awards previously granted to employees and directors under the 2006 Plan generally vest ratably based on service over a five- and three-year period, respectively, and generally have a contractual term of ten years. Vesting and contractual terms for option awards under the 2015 Plan are essentially the same as those of the 2006 Plan. Restricted stock awards generally cliff vest over a three-year period based on service conditions. Vesting of performance units generally does not commence until the attainment of Company-wide performance goals including annual revenue growth and operating income targets. There are no post-vesting restrictions for share awards.

The Company funds share awards from authorized but unissued shares and does not purchase shares to fulfill its obligations under the Equity Plans. Cash dividends, if any, are not paid on unvested performance units or unexercised options but are paid on unvested restricted stock awards.

The Company did not grant any options during the years ended March 31, 2022 or 2021.

A summary of option activity under the Equity Plans as of March 31, 2022, and changes during the year are presented below.


	(Shares and Aggregate Intrinsic Value in thousands)
Options	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at March 31, 2021		55		$	11.73		2.09	$	-
Granted		—			—
Exercised		(2	)		11.41
Forfeited		(16	)		11.58
Outstanding at March 31, 2022		37		$	11.85		1.45	$	-
Exercisable at March 31, 2022		37		$	11.85		1.45	$	-

During the fiscal year ended March 31, 2022, approximately 2,500 options were exercised. During the same period, approximately 16,100 options were forfeited at exercise prices ranging from $10.96 to $12.95 per share.

During the fiscal year ended March 31, 2021, no options were exercised. During the same period, approximately 7,000 options were forfeited at exercise prices ranging from $7.00 to $12.68 per share.

Cash received from options exercised during the fiscal years ended March 31, 2022 and 2021 totaled approximately $0 and $0, respectively. As of March 31, 2022, the Company had no unrecognized compensation related to options grants. For the year ended, March 31, 2022 and March 31, 2021, respectively, the Company had approximately $0 and $0 of total unrecognized compensation cost related to options granted.

A summary of the status of the Company’s non-vested restricted shares under the Equity Plan as of March 31, 2022, and changes during the year then ended is presented below.


	(Shares and Aggregate Intrinsic Value in thousands)
Restricted Share Awards	Shares			Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Non-vested at March 31, 2021		41		$	9.24		0.96		436
Granted		18			11.72
Vested		(20	)		9.34
Forfeited		(2	)		11.85
Non-vested at March 31, 2022		37		$	10.26		0.92	$	377

The Company awarded approximately 18,000 restricted shares during the fiscal year ended March 31, 2022. There are no performance shares included within the 18,000 restricted shares granted that resulted from the Company meeting a performance threshold. During the same period there were approximately 2,000 restricted shares forfeited. With the adoption of ASU 2016-09 on January 1, 2017, the Company no longer reduces stock-based compensation by estimated forfeitures. Instead the Company accounts for forfeitures when they occur. For any vesting tranche of an award, the cumulative amount of compensation cost recognized is at least equal to the portion of the grant‑date value of the award tranche that is actually vested at that date.

As of March 31, 2022, there was approximately $139,000 of total unrecognized compensation cost related to non-vested restricted share awards granted under the Equity Plans. That cost is expected to be recognized over a weighted-average period of approximately 0.92 years.