The Company has incentive stock plans, the Omnibus Incentive Plan (the Plan”) and the Omnibus Equity Compensation Plan (the Plan”). As a result of the approval of the Plan by the Company’s stockholders at the Company’s annual meeting, grants longer be issued under the Plan.

 

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 Plan be 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 be granted subject to the achievement of performance goals or other conditions, and certain awards be payable in stock or cash, or a combination of the two. The Plan is administered by the Compensation Committee of the Board, which selects eligible employees, non-employee directors and other individuals to participate in the Plan and determines the type, amount, duration (such duration to exceed a term of () years for grants of options) and other terms of individual awards. At shares of the Company’s common stock were available for future issuance under the Plan, which be 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 , which requires stock-based compensation to be accounted for using a fair-value-based measurement. During fiscal years and the Company recorded and of 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. stock-based compensation costs were capitalized as part of the cost of an asset as of

 

The following table represents stock option activity for fiscal years and

 

		Fiscal Years Ended
		March 29, 2020								March 31, 2019
		Weighted-								Weighted-
		Average				Number of				Average				Number of
		Exercise				Options				Exercise				Options
		Price				Outstanding				Price				Outstanding
Outstanding at Beginning of Period		$	7.45				457,500			$	7.93				395,000
Granted			4.76				125,000				5.90				110,000
Exercised			6.20				(10,000	)			-				-
Forfeited			7.07				(55,000	)			7.83				(47,500	)
Outstanding at End of Period			6.86				517,500				7.45				457,500
Exercisable at End of Period			7.74				347,500				8.03				292,500

 

As of of the outstanding or exercisable stock options held any intrinsic value. The Company did receive any cash from the exercise of stock options during fiscal year Upon the exercise of stock options, participants choose to surrender to the Company those shares from the option exercise necessary to satisfy the exercise amount and their income tax withholding obligations that arise from the option exercise. The effect on the cash flow of the Company from these “cashless” option exercises is that the Company remits cash on behalf of the participant to satisfy his or her income tax withholding obligations. The Company used cash to remit the required income tax withholding amounts from “cashless” option exercises of during fiscal year There were stock options exercised during fiscal year As of 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 and which options vest over a -year period, assuming continued service.

 

		Fiscal Year Ended
		March 29, 2020				March 31, 2019
Number of options issued			125,000				110,000
Grant date			June 13, 2019				June 13, 2018
Dividend yield			6.72	%			5.42	%
Expected volatility			25.00	%			25.00	%
Risk free interest rate			1.81	%			2.78	%
Contractual term (years)			10.00				10.00
Expected term (years)			4.00				4.00
Forfeiture rate			5.00	%			5.00	%
Exercise price (grant-date closing price) per option		$	4.76			$	5.90
Fair value per option		$	0.39			$	0.49

 

For the fiscal years ended and the Company recognized compensation expense associated with stock options as follows (in thousands):

 

		Fiscal Year Ended March 29, 2020
		Cost of				Marketing &
		Products				Administrative				Total
Options Granted in Fiscal Year		Sold				Expenses				Expense
2018		$	5			$	1			$	6
2019			10				8				18
2020			7				11				18
Total stock option compensation		$	22			$	20			$	42

 

		Fiscal Year Ended March 31, 2019
		Cost of				Marketing &
		Products				Administrative				Total
Options Granted in Fiscal Year		Sold				Expenses				Expense
2017		$	6			$	4			$	10
2018			17				26				43
2019			7				13				20
Total stock option compensation		$	30			$	43			$	73

 

A summary of stock options outstanding and exercisable as of is as follows:

 

													Weighted-								Weighted-
									Weighted-				Avg. Exercise								Avg. Exercise
					Number				Avg. Remaining				Price of				Number				Price of
Exercise					of Options				Contractual				Options				of Options				Options
Price					Outstanding				Life in Years				Outstanding				Exercisable				Exercisable
$4.00	-	4.99				130,000				8.90			$	4.76				5,000			$	4.81
$5.00	-	5.99				105,000				7.06			$	5.81				60,000			$	5.74
$6.00	-	6.99				25,000				4.11			$	6.21				25,000			$	6.21
$7.00	-	7.99				132,500				6.02			$	7.81				132,500			$	7.81
$8.00	-	8.99				55,000				5.20			$	8.38				55,000			$	8.38
$9.00	-	9.99				70,000				6.19			$	9.60				70,000			$	9.60
						517,500				6.80			$	6.86				347,500			$	7.74

 

As of total unrecognized stock-option compensation costs amounted to which will be recognized as the underlying stock options vest over a weighted-average period of months. 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.

 

The Board granted the following shares of non-vested stock to the Company’s non-employee directors:

 

	Number				Fair Value
	of Shares				per Share				Grant Date
		46,512			$	5.16			August 14, 2019
		28,000				5.43			August 8, 2018
		28,000				5.50			August 9, 2017
		28,000				10.08			August 10, 2016

 

These shares vest over a -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 and shares that had been granted to the Company’s non-employee directors vested, having an aggregate value of and respectively.

 

On upon the appointment of Donna Sheridan to serve as the President and Chief Executive Officer of NoJo, the Board granted shares of non-vested stock to Ms. Sheridan. These shares will vest on assuming continued service. The fair value of the non-vested stock granted to Ms. Sheridan is per share, which was based on the closing price of the Company’s common stock on the date of the grant.

 

The Company maintains a performance bonus plan for certain executive officers that provides for awards of cash or shares of common stock in the event that the aggregate average market value of the common stock during the relevant fiscal year, plus the amount of cash dividends paid in respect of the common stock during such period, increases.  These individuals instead 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 be awarded will vest over a -year period. Thus, compensation expense associated with performance bonus plan awards are recognized over a -year period – the fiscal year in which the award is earned, plus the -year vesting period.

 

shares were granted in fiscal years or in connection with the performance bonus plan. The Company recorded compensation expense during fiscal year of related to shares granted in fiscal year that were earned in fiscal year

 

The table below sets forth the vesting of shares granted under the performance bonus plan, as well as the number of shares surrendered to the Company to satisfy the income tax withholding obligations that arose from the vesting of the shares and the taxes remitted to the appropriate taxing authorities on behalf of such individuals.

 

						Vesting of shares during the fiscal years ended
Fiscal						March 29, 2020												March 31, 2019
Year		Shares				Shares				Aggregate				Taxes				Shares				Aggregate				Taxes
Granted		Granted				Vested				Value				Remitted				Vested				Value				Remitted
2017			41,205				-			$	-			$	-				20,601			$	122,000			$	39,000
2018			42,250				21,125				109,000				17,000				21,125				124,000				56,000
		Total					21,125			$	109,000			$	17,000				41,726			$	246,000			$	95,000

 

For the fiscal years ended and 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):

 

		Fiscal Year Ended March 29, 2020
						Non-employee				Total
Stock Granted in Fiscal Year		Employees				Directors				Expense
2018		$	-			$	26			$	26
2019			73				76				149
2020			-				80				80
Total stock grant compensation		$	73			$	182			$	255

 

		Fiscal Year Ended March 31, 2019
						Non-employee				Total
Stock Granted in Fiscal Year		Employees				Directors				Expense
2017		$	-			$	47			$	47
2018			116				77				193
2019			13				51				64
Total stock grant compensation		$	129			$	175			$	304

 

As of total unrecognized compensation expense related to the Company’s non-vested stock grants was 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 months. 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.