Stock-Based Compensation

6 Months Ended

Oct. 31, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

The Company has various stock-based compensation plans. During the three-months ended October 31, 2020, the Board of Directors of the Company approved grants of 8,200 service-based restricted stock units ("RSUs") to non-employee directors. These service-based RSUs (i) vest daily through the end of the two-year vesting period as long as the recipient continuously remains a member of the Board and (ii) entitle the recipient to receive one share of the Company's common stock per unit vested. During the six-months ended October 31, 2020, the Board of Directors of the Company also approved grants of service-based RSUs and performance-based RSUs to key employees. The employee performance-based RSUs totaled 124,374 units and the employee service-based RSUs totaled 67,006 units. The performance-based RSUs entitle the recipients to receive one share of the Company’s common stock per unit granted if applicable performance conditions are met and the recipient remains continuously employed with the Company until the units vest. The service-based RSUs entitle the

recipients to receive one share of the Company’s common stock per unit granted if they remain continuously employed with the Company until the units vest. All of the Company’s RSUs granted to employees cliff-vest three years from the grant date.

For the three and six-month periods ended October 31, 2020 and 2019, stock-based compensation expense was allocated as follows:


	Three Months Ended October 31,				Six Months Ended October 31,
(in thousands)	2020		2019		2020		2019
Cost of sales and distribution	$	409	$	277	$	708	$	492
Selling and marketing expenses	354		265		333		473
General and administrative expenses	503		636		1,186		1,110
Stock-based compensation expense	$	1,266	$	1,178	$	2,227	$	2,075

During the six months ended October 31, 2020, the Company also approved grants of 11,456 cash-settled performance-based restricted stock tracking units ("RSTUs") and 6,229 cash-settled service-based RSTUs for more junior level employees. Each performance-based RSTU entitles the recipient to receive a payment in cash equal to the fair market value of one share of the Company's common stock as of the payment date if applicable performance conditions are met and the recipient remains continuously employed with the Company until the units vest. The service-based RSTUs entitle the recipients to receive a payment in cash equal to the fair market value of one share of the Company's common stock as of the payment date if they remain continuously employed with the Company until the units vest. All of the RSTUs cliff-vest three years from the grant date. Since the RSTUs will be settled in cash, the grant date fair value of these awards is recorded as a liability until the date of payment. The fair value of each cash-settled RSTU award is remeasured at the end of each reporting period and the liability is adjusted, and related expense recorded, based on the new fair value. The Company recognized expense of $0.2 million and $0.2 million for the three-month periods ended October 31, 2020 and 2019, respectively, and $0.4 million and $0.2 million for the six-month periods ended October 31, 2020 and 2019, respectively. A liability for payment of the RSTUs is included in the condensed consolidated balance sheets in the amount of $0.6 million and $0.4 million as of October 31, 2020 and April 30, 2020, respectively.