Stock Incentive Compensation

6 Months Ended

Apr. 30, 2020

Stock Incentive Compensation requires us to expense share-based payment awards granted. Compensation cost for share-based payment transactions are measured at fair value. For stock options, we use the simplified method of calculating the expected term and historical volatility to compute fair value under the Black-Scholes option-pricing model. The risk-free rate for periods within the contractual life of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant. New restricted stock and restricted stock unit grants are calculated using the average market price of our common stock over a consistent predetermined number of days prior to the grant date and then valued at the closing market price of our common stock on the date of grant. We do not estimate a forfeiture rate at the time of grant. Instead, we adjust share-based compensation expense when actual forfeitures occur.

2019 Equity and Incentive Compensation Plan

Long-Term / Annual Incentives

On February 26, 2019, stockholders approved and adopted the 2019 Equity and Incentive Compensation Plan ("2019 Plan" or "Incentive Plan"), which replaced the 2016 Equity and Incentive Compensation Plan. The 2019 Plan authorizes the Compensation Committee of the Board of Directors of the Company to grant to the officers and other key employees, including directors, of the Company and our subsidiaries (i) stock options, (ii) appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) cash incentive awards, performance shares and performance units and (vi) other awards. An aggregate of 1,500,000 shares of common stock, subject to adjustment upon occurrence of certain events to prevent dilution or expansion of the rights of participants that might otherwise result from the occurrence of such events, was reserved for issuance pursuant to the Incentive Plan. An individual’s award of options and / or appreciation rights is limited to 500,000 shares during any calendar year. Also, an individual's award of restricted shares, restricted share units and performance-based awards is limited to 350,000 shares during any calendar year.

The following table summarizes the Company’s Incentive Plan activity for the nine months ended July 31, 2020 and 2019:


	Stock Options					Restricted Stock				Restricted Stock Units
Outstanding at:	Options	Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Restricted Shares	Grant Fair Value	Weighted Average Remaining Contractual Life	Restricted Share Units	Grant Fair Value	Weighted Average Remaining Contractual Life



November 1, 2018	33	$9.42	1.84	478	$7.45	1.87	27	$8.17	1.37
Granted	—	—		418	6.73		42	6.47
Options exercised or restricted stock vested	—	—		(230)	6.84		(14)	7.98
Forfeited or expired	—	—		(54)	7.39		(4)	7.35
July 31, 2019	33	$9.42	1.09	612	$7.20	1.97	51	$6.84	2.00

November 1, 2019	23	$11.25	1.31	603	$7.00	1.86	47	$6.81	1.88
Granted	—	—		677	3.30		55	3.60
Options exercised or restricted stock vested	—	—		(246)	7.11		(21)	7.10
Forfeited or expired	—	—		(268)	5.08		(38)	4.37
July 31, 2020	23	$11.25	0.56	766	$4.30	1.64	43	$4.75	1.95

We recorded stock compensation expense related to stock options, restricted stock and restricted stock units during the three and nine months ended July 31, 2020 and 2019 as follows:


	Three Months Ended July 31,
	2020		2019

Restricted stock	$	250	$	544
Restricted stock units	14		42
Total	$	264	$	586


	Nine Months Ended July 31,
	2020		2019

Restricted stock	$	1,283	$	1,461
Restricted stock units	103		115
Total	$	1,386	$	1,576

Stock Options - The exercise price of each stock option equals the market price of our common stock on the grant date. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur, and is recognized over the applicable vesting periods. Our stock options generally vest over three years, with a maximum term of ten years. Incentive stock options were not granted during the nine months ended July 31, 2020 and 2019.

Options that have an exercise price greater than the market price are excluded from the intrinsic value computation. At July 31, 2020 and October 31, 2019, the options outstanding and exercisable had an intrinsic value of $0 for both periods.

Restricted Stock Awards - New restricted stock grants are calculated using the average market price of our common stock over a consistent predetermined number of days prior to the grant date and then valued at the closing market price of our common stock on the date of grant. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur and is recognized over the applicable vesting periods. The vesting periods range between one to three years. As of

July 31, 2020, there was $2,298 of total unrecognized compensation costs related to these restricted stock awards to be recognized over the next three fiscal years.

Restricted Stock Units - New restricted stock unit grants are calculated using the average market price of our common stock over a consistent predetermined number of days prior to the grant date and then valued at the closing market price of our common stock on the date of grant. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur and is recognized over the applicable vesting periods. The vesting periods range between one to three years. As of July 31, 2020, there was $142 of total unrecognized compensation expense related to these restricted stock units that is expected to be recognized over the next three fiscal years.