Note 12 - Stock Options and Incentive Plans

9 Months Ended

Jan. 31, 2025

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. In April 2024, 1.65 million of those shares became fully vested and non-forfeitable. The remaining 850 thousand shares were forfeited. 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 thousand 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 thousand. The compensation related to this grant was expensed in fiscal year 2023. 

In October 2023, the Company granted a board member 300 thousand 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 thousand.  The compensation related to this grant was expensed in fiscal year 2024.

In January 2025, the Company granted 87 thousand shares under the plan.  The first installment of these shares vested immediately, the second installment vests on the one-year anniversary and the final installment vests on the two-year anniversary. These shares were valued at $1.73 per share for a total of $150 thousand.  The deferred compensation related to these grants will be expensed on the financial statements over the remaining two-year vesting period.

For the nine months ended January 31, 2025 the Company expensed $206 thousand.  For the nine months ended  January 31, 2024, the Company expensed $312 thousand and received a benefit from the forfeiture of shares of $401 thousand, for a net benefit of $89 thousand.

	Number of Shares			Weighted Average Grant Date Fair Value
Total shares issued		8,286,704		$	0.45
Forfeited, in prior periods		(975,000	)	$	0.40
Forfeited, during the year ended April 30, 2024		(1,525,000	)	$	0.40
Forfeited, during the nine months ended January 31, 2025		-		$	-
Total		5,786,704		$	0.47
Vested shares		2,528,901		$	0.52
Non-vested shares		3,257,803		$	0.43