Note 8 - Stock-based Compensation
|12 Months Ended|
Mar. 31, 2019
|Notes to Financial Statements|
|Share-based Payment Arrangement [Text Block]||
The Company has
twoincentive stock plans, the
2006Omnibus Incentive Plan (the
“2006Plan”) and the
2014Omnibus Equity Compensation Plan (the
“2014Plan”). As a result of the approval of the
2014Plan by the Company’s stockholders at the Company’s
2014annual meeting, grants
nolonger be issued under the
The Company believes that awards of long-term, equity-based incentive compensation will attract and retain directors, officers and employees of the Company and will encourage these individuals to contribute to the successful performance of the Company, which will lead to the achievement of the Company’s overall goal of increasing stockholder value. Awards granted under the
maybe in the form of incentive stock options, non-qualified stock options, shares of restricted or unrestricted stock, stock units, stock appreciation rights, or other stock-based awards. Awards
maybe granted subject to the achievement of performance goals or other conditions, and certain awards
maybe payable in stock or cash, or a combination of the two. The
2014Plan is administered by the Compensation Committee of the Board, which selects eligible employees, non-employee directors and other individuals to participate in the
2014Plan and determines the type, amount, duration (such duration
notto exceed a term of
10) years for grants of options) and other terms of individual awards. At
March 31, 2019,
556,000shares of the Company’s common stock were available for future issuance under the
maybe issued from authorized and unissued shares of the Company's common stock or treasury shares.
Stock-based compensation is calculated according to FASB ASC Topic
Compensation – Stock Compensation, which requires stock-based compensation to be accounted for using a fair-value-based measurement. During fiscal years
2018,the Company recorded
$539,000of stock-based compensation, respectively. The Company records the compensation expense associated with stock-based awards granted to individuals in the same expense classifications as the cash compensation paid to those same individuals.
Nostock-based compensation costs were capitalized as part of the cost of an asset as of
March 31, 2019.
ock Options:The following table represents stock option activity for fiscal years
stock options exercised during either of fiscal years
March 31, 2019,the intrinsic value of the outstanding and exercisable stock options was each
To determine the estimated fair value of stock options granted, the Company uses the Black-Scholes-Merton valuation formula, which is a closed-form model that uses an equation to estimate fair value. The following table sets forth the assumptions used to determine the fair value of the non-qualified stock options awarded to certain employees during fiscal years
2018,which options vest over a
For the fiscal years ended
March 31, 2019and
April 1, 2018,the Company recognized compensation expense associated with stock options as follows (in thousands):
A summary of stock options outstanding and exercisable as of
March 31, 2019is as follows:
March 31, 2019,total unrecognized stock-option compensation costs amounted to
$47,000,which will be recognized as the underlying stock options vest over a weighted-average period of
6.6months. The amount of future stock-option compensation expense could be affected by any future stock option grants and by the separation from the Company of any employee or director who has stock options that are unvested as of such individual’s separation date.
Granted to Non-Employee Directors
These shares vest over a
two-year period, assuming continued service. The fair value of non-vested stock granted to the Company’s non-employee directors was based on the closing price of the Company’s common stock on the date of each grant. In each of
shares that had been granted to the Company’s non-employee directors vested, having an aggregate value of
Non-vested Stock Granted to Employees:
January 18, 2019,upon the appointment of Donna Sheridan to serve as the President and Chief Executive Officer of NoJo, the Board granted
25,000shares of non-vested stock to Ms. Sheridan. These shares will vest on
January 18, 2021,assuming continued service. The fair value of the non-vested stock granted to Ms. Sheridan is
$5.86per share, which was based on the closing price of the Company’s common stock on the date of the grant.
Performance Bonus Plan:
mayinstead be awarded cash, if and to the extent that an insufficient number of shares of common stock are available for issuance from all shareholder-approved, equity-based plans or programs of the Company in effect. The performance bonus plan also imposes individual limits on awards and provides that shares of common stock that
maybe awarded will vest over a
two-year period. Thus, compensation expense associated with performance bonus plan awards are recognized over a
three-year period – the fiscal year in which the award is earned, plus the
two-year vesting period.
In connection with the performance bonus plan, the Company granted shares of common stock and recognized compensation expense as set forth below.
The below table sets forth the vesting of shares issued in connection with the grants of shares set forth in the above table. Each of the individuals holding shares that vested surrendered to the Company the number of shares necessary to satisfy the income tax withholding obligations that arose from the vesting of the shares. The below table also sets forth the taxes remitted to the appropriate taxing authorities on behalf of such individuals.
For the fiscal year ended
March 31, 2019,the Company recognized compensation expense associated with non-vested stock grants, which is included in marketing and administrative expenses in the accompanying consolidated statements of income, as follows (in thousands):
For the fiscal year ended
April 1, 2018,the Company recognized compensation expense associated with non-vested stock grants, which is included in marketing and administrative expenses in the accompanying consolidated statements of income, as follows (in thousands):
March 31, 2019,total unrecognized compensation expense related to the Company’s non-vested stock grants was
$261,000,which will be recognized over the remaining portion of the respective vesting periods associated with each block of grants, such grants having a weighted average vesting term of
10.1months. The amount of future compensation expense related to non-vested stock grants could be affected by any future non-vested stock grants and by the separation from the Company of any individual who has unvested grants as of such individual’s separation date.
The entire disclosure for share-based payment arrangement.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef