Note 2 - Stock Incentive Plans and Other Share-based Compensation

9 Months Ended

Jul. 31, 2018

Notes to Financial Statements

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

( 2 ) Stock Incentive Plans and Other Share-Based Compensation

As of

July 31, 2018,

there were approximately

205,000

remaining shares available for grant under the Optical Cable Corporation

2017

Stock Incentive Plan (

“2017

Plan”).

Share-based compensation expense for employees, a consultant and non-employee Directors recognized in the condensed consolidated statements of operations for the

three

months and

nine

months ended

July 31, 2018

was

$658,616

and

$1,361,475,

respectively and for the

three

months and

nine

months ended

July 31, 2017

was

$237,663

and

$668,676,

respectively. Share-based compensation expense is entirely related to expense recognized in connection with the vesting of restricted stock awards or other stock awards.

Restricted

and Other

Stock Awards

The Company has granted, and anticipates granting from time to time, restricted stock awards subject to approval by the Compensation Committee of the Board of Directors. Since fiscal year

2004,

the Company has exclusively used restricted stock awards for all share-based compensation of employees and consultants, and restricted stock awards or stock awards to non-employee members of the Board of Directors.

Restricted stock award activity during the

nine

months ended

July 31, 2018

consisted of restricted stock grants totaling

498,083

shares, restricted shares forfeited totaling

49,384

and restricted shares withheld for taxes in connection with the vesting of restricted shares totaling

69,645.

Employees and non-employee Directors have the option to surrender shares to pay for withholding tax obligations resulting from any vesting restricted shares, or to pay cash to the Company or taxing authorities in the amount of the withholding taxes owed on the value of any vesting restricted shares in order to avoid surrendering shares.

As of

July 31, 2018,

the estimated amount of compensation cost related to unvested equity-based compensation awards in the form of service-based and operational performance-based shares that the Company will recognize over a

3.2

year weighted-average period is approximately

$2.1

million.