Stock-Based Compensation

8 Months Ended

Jan. 07, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 9 – Stock-Based Compensation

Legacy Pinstripes’s 2008 Equity Incentive Plan (the “Plan”) provided for the issuance of 2,900,000 shares of Legacy Pinstripes Common Stock in the form of an option award or restricted stock award to eligible employees and directors. On October 19, 2023, the Board of Directors of Legacy Pinstripes approved a new equity incentive plan, the 2023 Stock Option Plan (the “2023 Plan”), which provided for the issuance of 1,500,000 shares of Legacy Pinstripes Common Stock in the form of options awards to eligible employees and directors. On December 29, 2023, in connection with the closing of the Business Combination, the Board of Directors of the Company approved a 2023 Omnibus Equity Incentive Plan (the “2023 Omnibus Plan”), which provides for the issuances of up to 12,900,000 shares of Class A Common Stock in the form of option awards, stock appreciation rights, restricted stock awards, restricted stock unit awards and performance awards to eligible employees and directors. The number of shares of Class A Common Stock available for issuance under the 2023 Omnibus Plan will be subject to an annual increase on the first day of each fiscal year of the Company beginning April 29, 2024, equal to the lesser of (i) 15% of the aggregate number of shares outstanding on the final day of the immediately preceding fiscal year on a fully diluted basis (inclusive of all outstanding awards granted pursuant to the 2023 Omnibus Plan as of such last day and, if applicable, all outstanding purchase rights pursuant to an employee stock purchase plan maintained by the Company as of such last day) and (ii) any such smaller number of shares as is determined by the Board. Option awards vest 20% at the end of each year over 5 years and expire 10 years from the date of grant, or generally within 90 days of employee termination. There were no restricted stock awards, restricted stock unit awards, stock appreciation rights or performance awards outstanding as of January 7, 2024.

A summary of equity classified option activity for the thirty-six weeks ended January 7, 2024 is as follows:

	Number of Options (1)	Weighted-average Exercise Price		Weighted-average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at April 30, 2023, as previously reported	2,284,399	$	9.84	6.56	$	16,628
Retroactive application of reverse recapitalization	1,938,936	(4.51)		—	$	13,215
Outstanding at April 30, 2023, as previously reported	4,223,335	$	5.33	6.56	$	29,843
Granted	1,433,855	12.52
Exercised	(45,177)	3.51			$	248
Expired	(89,655)	2.27
Forfeited or cancelled	(731,768)	9.56
Outstanding at January 7, 2024	4,790,590	$	6.91	6.70	$	3,774
Exercisable at January 7, 2024	2,352,180	$	4.15	4.59

(1) Number of options and weighted average exercise price has been adjusted to reflect the exchange of Legacy Pinstripes’ stock options for New Pinstripes’ stock options at an exchange ratio of approximately 1.8486 as a result of the Reverse Recapitalization (see Note 2).

The unrecognized expense related to our stock option plan totaled approximately $6,768 as of January 7, 2024 and will be expensed over a weighted average period 3.71 years.