Stock-Based Compensation

3 Months Ended

Jul. 31, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

The Company has various stock-based compensation plans. During the three months ended July 31, 2023, the Board of Directors of the Company approved grants of service-based restricted stock units ("RSUs") and performance-based RSUs to key employees. The performance-based RSUs totaled 124,282 units and the service-based RSUs totaled 66,968 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. Prior to June 2023, all of the Company's RSUs granted to employees cliff-vest three years from the grant date. Beginning in June 2023, service-based RSUs granted to employees vest one-third on each of the first, second and third anniversaries of the grant date.

For the three-month periods ended July 31, 2023 and 2022, stock-based compensation expense was allocated as follows:


	Three Months Ended
	July 31,
(in thousands)		2023		2022
Cost of sales and distribution		$	578	$	438
Selling and marketing expenses		608		498
General and administrative expenses		1,061		699
Stock-based compensation expense		$	2,247	$	1,635

During the three months ended July 31, 2023, the Company also approved grants of 12,199 cash-settled performance-based restricted stock tracking units ("RSTUs") and 6,571 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. Prior to June 2023, all of the Company's RSTUs granted to employees cliff-vest three years from the grant date. Beginning in June 2023, service-based RSTUs granted to employees vest one-third on each of the first, second and third anniversaries of the grant date. 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 expense recognized for the three-month periods ended July 31, 2023 and 2022, and the liability as of July 31, 2023 and April 30, 2023, related to RSTUs is not significant.