Stock-Based Compensation

3 Months Ended

Jul. 31, 2025

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company has various stock-based compensation plans. During the three-months ended July 31, 2025, the Company's Board of Directors (the "Board") approved grants of service-based restricted stock units ("RSUs") and performance-based RSUs to key employees. 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 cliff vest at the end of the three-year vesting period. The service-based RSUs granted to key employees 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. Service-based RSUs granted to employees vest one-third on each of the first, second and third anniversaries of the grant date. The Board of Directors also approved special retention awards to the Company's executive officers. The special retention awards consist of service-based RSUs that cliff vest one year from the date of award. The Compensation Committee of the Board approved these special retention awards to maintain the continuity of the Company’s management team, promote retention of critical leadership talent and focus on long-term value creation by further

aligning management’s interests with those of the Company’s shareholders, following the recent departure of the Company’s chief financial officer during a challenging business environment and increased economic uncertainty. The fair value of the Company's RSU awards is expensed on a straight-line basis over the vesting period of the RSUs to the extent the Company believes it is probable the related performance criteria, if any, will be met.

The following table summarizes the Company's stock-based compensations grants for the three months ended July 31, 2025:

(in thousands, except per share amounts)	Stock Awards Granted
Service-based RSUs	114,460
Performance-based RSUs	158,010

For the three months ended July 31, 2025 and 2024, stock-based compensation expense was allocated as follows: 

	Three Months Ended
	July 31,
(in thousands)	2025		2024
Cost of sales and distribution	$	524	$	541
Selling and marketing expenses	466		573
General and administrative expenses	1,270		1,827
Stock-based compensation expense	$	2,260	$	2,941