Note 12 - Capital Stock and Stock Compensation

12 Months Ended

Nov. 28, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

12. Capital Stock and Stock Compensation

We account for our stock-based employee and director compensation plans in accordance with ASC 718, Compensation – Stock Compensation. ASC 718 requires recognition of the cost of employee services received in exchange for an award of equity instruments in the financial statements over the period the employee is required to perform the services in exchange for the award (presumptively the vesting period) which we recognize on a straight-line basis. Compensation expense related to restricted stock and stock options included in selling, general and administrative expenses in our consolidated statements of operations for fiscal 2020, 2019 and 2018 was as follows:

	2020		2019		2018
Stock based compensation expense	$	420	$	958	$	1,133

Incentive Stock Compensation Plans

On April 14, 2010, our shareholders approved the Bassett Furniture Industries, Incorporated 2010 Stock Incentive Plan which was amended and restated effective January 13, 2016 (the “2010 Plan”). All non-employee directors, key employees and outside consultants for the Company were eligible to receive incentive awards under the 2010 Plan. The 2010 Plan expired in April of 2020 and no additional grants can be awarded under the plan.

The fair value of each option award was estimated on the date of grant using the Black-Scholes option pricing model. The risk free rate is based on the U.S. Treasury rate for the expected life at the time of grant, volatility is based on the average long-term implied volatilities of peer companies, the expected life is based on the estimated average of the life of options using the simplified method. Forfeitures are recognized as they occur. We utilized the simplified method to determine the expected life of our options due to insufficient exercise activity during recent years as a basis from which to estimate future exercise patterns.

Stock Options

There were no new grants of options made in 2020, 2019 or 2018.

Changes in the outstanding options under our plans during the year ended November 28, 2020 were as follows:

	Number of Shares		Weighted Average Exercise Price Per Share
Outstanding at November 30, 2019		5,250	$	8.02
Granted		-		-
Exercised		-		-
Forfeited/Expired		-		-
Outstanding at November 28, 2020		5,250		8.02
Exercisable at November 28, 2020		5,250	$	8.02

All remaining options outstanding at November 28, 2020 are exercisable at $8.02 per share with a remaining contractual life of 0.6 years and an aggregate intrinsic value of $45. There were no non-vested options outstanding under our plans during the year ended November 28, 2020.

Additional information regarding activity in our stock options during fiscal 2020, 2019 and 2018 is as follows:

	2020		2019		2018
Total intrinsic value of options exercised	$	-	$	34	$	75
Total cash received from the exercise of options		-		25		27
Excess tax benefits recognized in income tax expense upon the exercise of options		-		6		16

Restricted Shares

Changes in the outstanding non-vested restricted shares during the year ended November 28, 2020 were as follows:

	Number of Shares			Weighted Average Grant Date Fair Value Per Share
Non-vested restricted shares outstanding at November 30, 2019		90,153		$	29.06
Granted		-			-
Vested		(48,653	)		27.30
Forfeited		(7,000	)		19.03
Non-vested restricted shares outstanding at November 28, 2020		34,500		$	33.58

During fiscal 2020, 48,653 restricted shares were vested and released, of which 39,000 shares had been granted to employees and 9,653 shares had been granted to directors. During fiscal 2020 and 2018, 14,010 shares and 19,810 shares, respectively, were withheld to cover withholding taxes of $228 and $674, respectively, arising from the vesting of restricted shares. During fiscal 2020, 2019 and 2018, excess tax (expense) benefits of $(114), $0 and $207, respectively, were recognized within income tax expense upon the release of vested shares.

Additional information regarding our outstanding non-vested restricted shares at November 28, 2020 is as follows:

					Remaining
	Restricted		Share Value		Restriction
Grant	Shares		at Grant Date		Period
Date	Outstanding		Per Share		(Years)
January 11, 2018		31,000	$	35.75		0.1
October 9, 2019		3,500		14.37		1.9
		34,500

Unrecognized compensation cost related to these non-vested restricted shares at November 28, 2020 is $41, all of which is expected to be recognized within the next two fiscal years.

Employee Stock Purchase Plan

In March of 2017 we adopted and implemented the 2017 Employee Stock Purchase Plan (“2017 ESPP”) that allows eligible employees to purchase a limited number of shares of our stock at 85% of market value. Under the 2017 ESPP we sold 50,217, 23,460 and 14,967 shares to employees during fiscal 2020, 2019 and 2018, respectively, which resulted in an immaterial amount of compensation expense. There are 155,081 shares remaining available for sale under the 2017 ESPP at November 28, 2020.