Stock-Based Compensation

9 Months Ended

Apr. 30, 2017

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 9 — Stock-Based Compensation

Stock Options: 

Effective as of July 31, 2013, the Company adopted the 2013 Stock Option and Incentive Plan (as amended and restated to date, the “2013 Plan”). As of April 30, 2017, there are 1,503,532 shares of the Company’s Class B common stock reserved for the grant of awards under the 2013 Plan.

No stock options were issued in the nine months ended April 30, 2017.

Stock-based compensation is included in selling, general and administrative and, with respect to stock options granted, amounted to approximately $97,000 and $0 for the three months ended April 30, 2017 and 2016, respectively, and approximately $290,000 and $0 for the nine months ended April 30, 2017 and 2016, respectively.

 Issuances of unrestricted and restricted shares of Class B common stock included in stock-based compensation for the nine months ended April 30, 2017 are as follows:

In October 2016, the Company granted officers and employees 164,000 restricted shares of Class B common stock. The shares will vest over a two-to-four-year period. The aggregate fair value of the grant was approximately $4,392,000 which is being charged to expense on a straight-line basis over the vesting periods.

In addition, in October 2016, the Company issued 120,000 restricted shares of Class B common stock to Jonas as compensation as follows:

1.	60,000 shares which vested immediately. The aggregate fair value of the grant was $1,866,000 which was charged to expense in the period issued.
2.	60,000 shares which will vest over a three-year period. The aggregate fair value of the grant was $1,866,000 which is being charged to expense on a straight-line basis over the vesting period.

On September 9, 2016, the Company issued 1,250 restricted shares of Class B common stock to a consultant as compensation. The shares vest over a 13-month period. The aggregate fair value of the grant is being charged to expense on a straight-line basis over the vesting period.

On January 5, 2017, the Company granted three of its directors an aggregate of 24,000 restricted shares of Class B common stock. These grants are the annual grants to non-employee directors provided for in the Plan. The shares vested immediately. The aggregate fair value of the grant was approximately $886,000.

On April 10, 2017, the Company granted Jonas 60,000 restricted shares of Class B common stock. The shares will vest over a three-year period. The aggregate fair value of the grant was approximately $2,144,000 which is being charged to expense on a straight-line basis over the vesting periods.

Stock-based compensation is included in selling, general and administrative expense and, with respect to restricted stock granted, amounted to approximately $901,000 and $605,000 for the three months ended April 30, 2017 and 2016, respectively, and approximately $5,188,000 and $2,191,000 for the nine months ended April 30, 2017 and 2016, respectively. As of April 30, 2017, there was approximately $8,357,000 of total unrecognized compensation cost related to non-vested restricted shares. The Company expects to recognize the unrecognized compensation cost as follows: Fiscal 2017 - $973,000, Fiscal 2018 - $3,496,000, Fiscal 2019 - $2,704,000, Fiscal 2020 - $1,121,000 and Fiscal 2021 - $63,000.