During 2015, the Company’s board of directors and stockholders approved the Company’s 2015 Equity Incentive Plan (the “Plan”). During December 2020, the Company’s stockholders approved an amendment to the Plan to increase the number of shares of the Company’s common stock authorized for issuance pursuant to awards granted under the Plan from 1,500,000 shares to 3,000,000 shares. The fair value of awards granted under the Plan is expensed on straight-line basis over the vesting period of the awards. Share-based compensation expense is included in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations. Non-cash share-based compensation expense under the Plan totaled $2.6 million and $2.4 million for fiscal 2022 and fiscal 2021, respectively.

EVI Industries, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

During fiscal 2022, restricted stock awards, restricted stock units and stock awards of a total of 134,612 shares, 178,719 shares and 8,287 shares, respectively, were granted under the Plan. A portion of the restricted stock awards is scheduled to vest ratably over four years and the remainder is scheduled to vest in 10 to 19 years, subject, in the case of certain restricted shares, to accelerated vesting upon the achievement of certain specified performance goals. The total grant date fair value, determined by using the closing stock price on the date of grant, of such restricted stock awards was $4.8 million. A portion of the restricted stock units is scheduled to vest ratably over four years and the remainder is scheduled to vest in 4 to 37 years. The total grant date fair value of such restricted stock units was $3.8 million. Stock awards relate to shares of the Company’s common stock issued under the Plan which are immediately held by the recipient upon grant without any risk of forfeiture. The total grant date fair value of such stock awards was $300,000.

During fiscal 2021, restricted stock awards and restricted stock units of a total of 8,624 shares and 204,014 shares, respectively, were granted under the Plan. A portion of the restricted stock awards is scheduled to vest ratably over four years and the remainder is scheduled to cliff vest on or about the five-year anniversary of the applicable grant date, subject, in the case of certain restricted shares, to accelerated vesting upon the achievement of certain specified performance goals. The total grant date fair value, determined by using the closing stock price on the date of grant, of such restricted stock awards was $264,000. A portion of the restricted stock units is scheduled to vest ratably over four years and the remainder is scheduled to vest in 4 to 41 years. The total grant date fair value of such restricted stock units was $6.3 million.

During fiscal 2022, 14,485 shares of restricted stock awards and 6,350 shares of restricted stock units vested and 3,834 shares of common stock with an aggregate fair market value of $87,000 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of such restricted stock. As described above, during fiscal 2022, the Company also granted stock awards (not subject to forfeiture) of 8,287 shares of the Company’s common stock. 3,261 of such shares of common stock, which had an aggregate fair market value of $118,000 as of the grant date, were withheld in lieu of cash to satisfy tax withholding obligations in connection with the grant of the stock awards. During fiscal 2021, 75,093 shares of restricted stock awards and 2,531 shares of restricted stock units vested and 25,310 shares of common stock with an aggregate fair market value of $853,000 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of such restricted stock. As of June 30, 2022, the Company had $18.1 million and $9.6 million of total unrecognized compensation expense related to non-vested restricted stock awards and restricted stock units, respectively, which is expected to be recognized over the weighted-average period of 16.0 years and 11.4 years, respectively.

The following is a summary of non-vested restricted stock activity as of, and for the fiscal year ended, June 30, 2022:

	Restricted Stock Awards					Restricted Stock Units
	Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value
Non-vested restricted stock outstanding at June 30, 2021		919,259		$	19.59		253,913		$	30.92
Granted		134,612			35.32		178,719			21.31
Vested		(14,485	)		25.11		(6,350	)		29.61
Forfeited		(13,203	)		14.20		(9,817	)		33.78
Non-vested restricted stock outstanding at June 30, 2022		1,026,183		$	21.65		416,465		$	26.75

Employee Stock Purchase Plan

During 2017, the Company’s board of directors and stockholders approved the Company’s 2017 Employee Stock Purchase Plan, which, subject to the terms of the plan, allows eligible employees the opportunity to purchase shares of the Company’s common stock at a 5% discount. The employee stock purchase plan provides for six-month offering periods ending on December 31 and June 30 of each year. During fiscal 2022, 8,389 shares of common stock were purchased under the Company’s employee stock purchase plan for which the Company received net proceeds of $120,000. During fiscal 2021, 2,492 shares of common stock were purchased under the Company’s employee stock purchase plan for which the Company received net proceeds of $69,000.