Stock-Based Compensation

9 Months Ended

Oct. 29, 2022

Stock-Based Compensation [Abstract]

Stock-Based Compensation

NOTE 6 – STOCK-BASED COMPENSATION:

As of October 29, 2022, the Company had two long-term compensation plans pursuant to which stock-based compensation was outstanding or could be granted. The 2018 Incentive Compensation Plan and 2013 Incentive Compensation Plan are for the granting of various forms of equity-based awards, including restricted stock and stock options for grant, to officers, directors and key employees. Effective May 24, 2018, shares for grant were no longer available under the 2013 Incentive Compensation Plan.

The following table presents the number of options and shares of restricted stock initially authorized and available for grant under each of the plans as of October 29, 2022:

	2013	2018
	Plan	Plan	Total
Options and/or restricted stock initially authorized	1,500,000	4,725,000	6,225,000
Options and/or restricted stock available for grant:
October 29, 2022	-	3,455,547	3,455,547

In accordance with ASC 718, the fair value of current restricted stock awards is estimated on the date of grant based on the market price of the Company’s stock and is amortized to compensation expense on a straight-line basis over the related vesting periods. As of October 29, 2022 and January 29, 2022, there was $11,786,000 and $11,096,000, respectively, of total unrecognized compensation expense related to nonvested restricted stock awards, which had a remaining weighted-average vesting period of 2.4 years and 2.3 years, respectively. Total compensation benefit during the three months ended October 29, 2022 was $535,000 and total compensation expense during the nine months ended October 29, 2022 was $1,471,000, compared to an expense of $1,088,000 and $2,968,000, respectively, for the three and nine months ended October 30, 2021. The total compensation benefit during the three months ended October 29, 2022 is the result of forfeitures driven by the retirement of several senior members of management. These amounts are classified as a component of Selling, general and administrative expenses in the Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).The following summary shows the changes in the shares of unvested restricted stock outstanding during the nine months ended October 29, 2022:

			Weighted Average
	Number of		Grant Date Fair
	Shares		Value Per Share
Restricted stock awards at January 29, 2022	1,196,288	$	13.76
Granted	319,441		13.70
Vested	(231,638)		16.99
Forfeited or expired	(219,144)		13.44
Restricted stock awards at October 29, 2022	1,064,947	$	13.10

The Company’s Employee Stock Purchase Plan allows eligible full-time employees to purchase a limited number of shares of the Company’s Class A Common Stock during each semi-annual offering period at a 15% discount through payroll deductions. During the nine months ended October 29, 2022 and October 30, 2021, the Company sold 28,504 and 22,541 shares to employees at an average discount of $1.73 and $1.38 per share, respectively, under the Employee Stock Purchase Plan. The compensation expense recognized for the 15% discount given under the Employee Stock Purchase Plan was approximately $49,000 and $31,000 for the nine months ended October 29, 2022 and October 30, 2021, respectively. These expenses are classified as a component of Selling, general and administrative expenses.