STOCKHOLDERS' EQUITY

Common Stock

The holders of the Class A common stock are entitled to one vote for each share held. The holders of the Class B common stock are entitled to ten votes for each share held, except for the election of one director, who is elected by the holders of the Class A common stock exclusively. The Class B common stock is convertible into Class A common stock on a share-for-share basis at the option of the shareholder.

Preferred Stock

We are authorized to issue up to 944 shares of preferred stock in one or more series. As of December 31, 2016 and December 31, 2015 we had no shares issued.

Stock Based Compensation

Stock Incentive Plans

1997 Stock Option Plan. In the fiscal year ended April 30, 1998, we adopted the 1997 Stock Option Plan (“1997 Plan”). The 1997 Plan terminated as of July 31, 2007 and as a result no additional awards may be made pursuant to the 1997 Plan. Outstanding shares which are not actually issued under the 1997 Plan because such stock options expire or otherwise result in shares not being issued are reserved for issuance under the 2006 Plan.

2006 Stock Incentive Plan. In the fiscal year ended April 30, 2007, we adopted the 2006 Stock Incentive Plan (“2006 Plan”). The 2006 Plan was amended in the fiscal year ended April 30, 2010. The 2006 Plan terminated as of October 9, 2016 and as a result no additional awards may be made pursuant to the 2006 Plan. Outstanding shares which are not actually issued under the 2006 Plan because such awards expire or otherwise result in shares not being issued are reserved for issuance under the 2016 Plan.

2016 Incentive Plan. In fiscal year 2016, we adopted the 2016 Incentive Plan (“2016 Plan”). Under the 2016 Plan, we may grant awards up to an aggregate amount of shares equal to the sum of: (i) 2,250 shares of Class A common stock (subject to adjustment in the event of stock splits and other similar events), plus (ii) such additional number of shares of Class A common stock as is equal to the sum of the number of shares of Class A common stock remaining available for grant under the 2006 Plan immediately prior to the expiration of the 2006 Plan and the number of shares of Class A common stock subject to awards granted under the 2006 Plan that expire or otherwise result in shares not being issued.

As of December 31, 2016, there were 2,489 Class A common stock equivalents available for future grant under the 2016 Plan, inclusive of additional Class A common stock equivalents that were previously issued under terminated plans and have become available for grant because such awards expired or otherwise resulted in shares not being issued.

Our equity awards granted consist of stock options, including market-based performance stock options, restricted stock awards, restricted stock units and performance stock units, including market-based performance stock units.

Stock options are granted at a price equal to the prevailing fair value of our Class A common stock at the date of grant. Generally, stock options granted have a term not to exceed ten years and vest over a one year to four year period from the date of grant.

The fair value of each stock option granted, with the exception of market-based performance stock option grants, is estimated using a Black-Scholes option-pricing model, which requires extensive use of accounting judgment and financial estimation, including estimates of the expected term stock option holders will retain their vested stock options before exercising them and the estimated volatility of our Class A common stock price over the expected term. The fair value of each market-based performance stock option granted is estimated using a Monte Carlo option-pricing model, which also requires extensive use of accounting judgment and financial estimation, including estimates of the expected term stock option holders will retain their vested stock options before exercising them and the estimated volatility of our Class A common stock price over the expected term, but also including estimates of share price appreciation of our Class A common stock as compared to the Russell 2000 Index over the requisite service period.

Restricted stock awards, restricted stock units and performance stock units are granted at a price equal to the fair value of our Class A common stock at the date of grant. The fair value of each market-based performance stock unit is estimated using a Monte Carlo pricing model, which requires extensive use of accounting judgment and financial estimation, including the estimated share price appreciation plus the value of dividends of our Class A common stock as compared to the Russell 2000 Index over the requisite service period.

Restricted stock awards granted to non-employee directors vest incrementally over a three year period beginning on the first anniversary of the date of grant. Restricted stock units vest incrementally over an identified service period beginning on the grant date based on continued employment. Performance stock units and market-based performance stock units vest at a future date following the grant date and are based on the attainment of performance targets and market achievements.

Stock Options

A summary of stock option activity is as follows:



	Stock Options (1)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding, December 31, 2015	1,297		$	7.03
Granted	50		$	12.48
Exercised	(12	)	$	10.85
Forfeited or expired	(220	)	$	12.64
Outstanding, December 31, 2016	1,115		$	6.13	5.8	$	7,086
Exercisable, December 31, 2016	782		$	5.73	4.6	$	5,293
Unvested, December 31, 2016	373		$	7.62	8.7	$	1,793


(1)	Market-based performance stock option grants are included at 100%. Attainment of maximum performance targets and market achievements would result in the issuance of 40 shares of Class A common stock currently included in unvested.

During fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014, stock-based compensation expense for stock options was $605, $671, $386, and $464, respectively.

During fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014, the aggregate intrinsic value of stock options exercised was $22, $52, $31 and $23.

As of December 31, 2016, total unrecognized stock-based compensation expense related to all outstanding stock options, assuming the attainment of maximum performance targets, was $1,218, which will be recognized over a weighted average period of 1.5 years.

Our calculation of stock-based compensation expense associated with stock options granted, with the exception of market-based performance stock option grants which are valued using a Monte Carlo option-pricing model, was made using the Black-Scholes valuation model. The weighted average fair value of stock options granted, with the exception of market-based performance stock option grants, during fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014 were $0, $5.35, $3.62 and $4.22 per option, respectively, which were calculated assuming no expected dividend yield using the following weighted average assumptions:



	Fiscal Year Ended December 31,				Eight Months Ended December 31, 2014		Fiscal Year Ended April 30, 2014
	2016 (1)		2015		Eight Months Ended December 31, 2014		Fiscal Year Ended April 30, 2014
Expected life	0.0 years		7.2 years		7.0 years		6.8 years
Risk-free interest rate	—	%	2.02	%	2.15	%	2.22	%
Expected volatility	—	%	81.31	%	82.76	%	83.96	%


(1)	In fiscal year 2016, we only granted market-based performance stock options, which are discussed separately below.

The weighted average fair value of market-based performance stock options granted during fiscal year 2016 was $6.70 per option, which was calculated using a Monte Carlo option-pricing model assuming an expected life of 7.4 years, a risk free interest rate of 2.15%, and an expected volatility of 43.10% assuming no expected dividend yield.

Expected life is calculated based on the weighted average historical life of the vested stock options, giving consideration to vesting schedules and historical exercise patterns. Risk-free interest rate is based on the U.S. Treasury yield curve for the period of the expected life of the stock option. Expected volatility is calculated using the weekly historical volatility of our Class A common stock over the expected life, except in the case of market-based performance stock option where the daily historical volatility of our Class A common stock over the expected life is used.

The Black-Scholes valuation model and the Monte Carlo option-pricing model each require extensive use of accounting judgment and financial estimation. Application of alternative assumptions could produce significantly different estimates of the fair value of stock-based compensation and consequently, the related amounts recognized in the consolidated statements of operations.

Other Stock Awards

A summary of restricted stock, restricted stock unit and performance stock unit activity is as follows:



	Restricted Stock, Restricted Stock Units, and Performance Stock Units (1)		Weighted Average Grant Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding, December 31, 2015	962		$	4.49
Granted	608		$	8.97
Class A common stock vested	(453	)	$	4.47
Forfeited or canceled	(18	)	$	5.40
Outstanding, December 31, 2016	1,099		$	7.03	1.6	$	6,330
Unvested, December 31, 2016	1,286		$	7.76	1.7	$	6,593


(1)	Market-based performance stock unit grants are included at 100%. Attainment of maximum performance targets and market achievements would result in the issuance of an additional 187 shares of Class A common stock currently included in unvested.

During fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014, stock-based compensation expense related to restricted stock, restricted stock units and performance stock units was $2,673, $2,314, $1,202 and $1,861, respectively. Stock-based compensation expense related to restricted stock and restricted stock units during fiscal year 2015 included $270 of incremental compensation expense resulting from the modification of restricted stock awards associated with the retirement of two members of our Board of Directors.

During fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014, the total fair value of other stock awards vested was $3,238, $2,340, $1,866 and $1,458, respectively.

As of December 31, 2016, total unrecognized stock-based compensation expense related to restricted stock and restricted stock units was $3,212, which will be recognized over a weighted average period of 1.7 years. Total unrecognized stock-based compensation expense related to performance stock units, assuming the attainment of maximum performance targets, was $4,037, which will be recognized over a weighted average period of 2.0 years.

During fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014, the weighted-average grant date fair value of restricted stock, restricted stock units and performance stock units granted was $8.97, $4.40, $4.90 and $4.28, respectively. The weighted average fair value of market-based performance stock units granted during fiscal year 2016 was $14.30 per award, which was calculated using a Monte Carlo pricing model assuming a risk free interest rate of 1.07% and an expected volatility of 33.00% assuming no expected dividend yield. Risk-free interest rate is based on the U.S. Treasury yield curve for the expected service period of the award. Expected volatility is calculated using the daily volatility of our Class A common stock over the expected service period of the award.

The Monte Carlo pricing model requires extensive use of accounting judgment and financial estimation. Application of alternative assumptions could produce significantly different estimates of the fair value of stock-based compensation and consequently, the related amounts recognized in the consolidated statements of operations.

We also recorded $115, $94, $52 and $79 of stock-based compensation expense related to our Amended and Restated 1997 Employee Stock Purchase Plan during fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014, respectively.

There was $0, $19, $0 and $0 of tax benefit in the provision for income taxes associated with stock-based compensation expense during fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014, respectively. We recorded a tax benefit of $0, $185, $84 and $0 to additional paid-in-capital related to the exercise of various share based awards in fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014, respectively. Effective fiscal year 2016, tax savings from stock-based compensation resulting from tax deductions in excess of expense are no longer reflected as a financing cash flow in our consolidated financial statements.

Accumulated Other Comprehensive (Loss) Income

Accumulated other comprehensive (loss) income is a component of stockholders' deficit included in the accompanying consolidated balance sheets and includes, as applicable, the effective portion of changes in the fair value of our cash flow hedges, the changes in fair value of our marketable securities, as well as our portion of the changes in the fair value of GreenFiber’s commodity hedges up until the date of divestiture.

The changes in the balances of each component of accumulated other comprehensive (loss) income are as follows:



	Marketable Securities			Commodity Hedges			Total
Balance as of April 30, 2013	$	27		$	(619	)	$	(592	)
Other comprehensive income (loss) before reclassifications	12			(36		)	(24		)
Amounts reclassified from accumulated other comprehensive loss	—			655			655
Other comprehensive income, net	12			619			631
Balance as of April 30, 2014	39			—			39
Other comprehensive income	19			—			19
Balance as of December 31, 2014	58			—			58
Other comprehensive loss	(51		)	—			(51		)
Balance as of December 31, 2015	7			—			7
Other comprehensive loss	(75		)	—			(75		)
Balance as of December 31, 2016	$	(68	)	$	—		$	(68	)

A summary of reclassifications out of accumulated other comprehensive (loss) income for fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014 is as follows:



	Fiscal Year Ended December 31,				Eight Months Ended December 31, 2014		Fiscal Year Ended April 30, 2014
	2016		2015		Eight Months Ended December 31, 2014		Fiscal Year Ended April 30, 2014
Details About Accumulated Other Comprehensive (Loss) Income Components	Amounts Reclassified Out of Accumulated Other Comprehensive (Loss) Income									Affected Line Item in the Consolidated Statements of Operations
Loss on derivative instruments:
GreenFiber commodity hedges	$	—	$	—	$	—	$	(405	)	Loss from equity method investments
	—		—		—		(405		)	Loss from continuing operations before income taxes and discontinued operations
	—		—		—		(250		)	Provision for income taxes
	$	—	$	—	$	—	$	(655	)	Loss from continuing operations before discontinued operations