Stock-Based Compensation

3 Months Ended

Jul. 31, 2023

Share-Based Payment Arrangement [Abstract]

In the first quarter of 2024, the Compensation Committee of our Board of Directors awarded RSUs to independent directors not employed by the Company that will vest, and shares of common stock will be issued, on the first anniversary of the date of the grant.


	Three Months Ended July 31,
	2023	2022
Awards granted:
Options	880,000	1,362,000
RSUs	74,560	—

Total awards granted	954,560	1,362,000

The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model and the fair value of each RSU award is estimated on the date of grant using the fair value method. The forfeiture rates are estimated using historical data. We recorded total compensation cost related to stock options and RSUs of approximately $1.6 million and $1.3 million and income tax benefits of approximately $0 and $34,000 from option exercises during the three months ended July 31, 2023 and 2022, respectively. We record stock-based compensation expense on a straight-line basis over the vesting period directly to additional paid-in capital.

During the three months ended July 31, 2023 and 2022, we issued 22,253 and 43,000 shares of Class A common stock, respectively, resulting from the exercise of stock options. The total intrinsic value of options exercised during the three months ended July 31, 2023 and 2022 based on market value at the exercise dates was approximately $40,000 and $0.2 million, respectively. As of July 31, 2023, unrecognized compensation cost related to unvested stock option and RSU awards approximated $15.3 million and $0.7 million, respectively, which we expect to recognize over a weighted average period of 1.81 years.