Note 12 - Stock Options and Incentive Plans

9 Months Ended

Jan. 31, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

12. Stock Options and Incentive Plans:

In November 2016, the shareholders approved and adopted the Butler National Corporation 2016 Equity Incentive Plan. The maximum number of shares of common stock that may be issued under the Plan is 12.5 million.

On April 12, 2019, the Company granted 2.5 million restricted shares to employees. These shares have voting rights at date of grant and become fully vested and nonforfeitable on April 11, 2024. The restricted shares were valued at $0.38 per share, for a total of $950. On March 17, 2020, the Company granted 5.0 million restricted shares to employees. These shares have voting rights at date of grant and become fully vested and non-forfeitable on March 16, 2025. The restricted shares were valued at $0.41 per share, for a total of $2.0 million. The deferred compensation related to these grants will be expensed on the financial statements over the five year vesting period.  

In July 2022, the Company granted a board member 400,000 shares under the plan. These shares were fully vested and non-forfeitable on the date of grant. These shares were valued at $0.88 per share, for a total of $352. The compensation related to this grant was expensed in fiscal year 2023. 

In October 2023, the Company granted a board member 300,000 shares under the plan.  These shares were fully vested and non-forfeitable on the date of the grant. These shares were valued at $0.74 per share, for a total of $222.  The compensation related to this grant was expensed in the current period.

For the nine months ended January 31, 2024 the Company expensed $312 and received a benefit from the forfeiture of shares of $401 for a net benefit of $89.  For the nine months ended  January 31, 2023, the Company expensed $434 and received a benefit from the forfeiture of shares of $205, for a net expense of $229.

	Number of Shares			Weighted Average Grant Date Fair Value
Total shares issued		8,200,000		$	0.43
Forfeited, in prior periods		(100,000	)	$	0.40
Forfeited, during the year ended April 30, 2023		(875,000	)	$	0.40
Forfeited, during the nine months ended January 31, 2024		(1,450,000	)	$	0.40
Total		5,775,000		$	0.45