Note 15. Stock-Based Compensation

The Company rolled forward certain vested options from CPH (see discussion below) to 2,783,479 equivalent vested options in the Successor. No incremental compensation costs were recognized on conversion as the fair value of the options issued were equivalent to the fair value of the vested options of CPH. Exercise prices for those options range from $0.87 to $6.09.

During 2019, pursuant to the Concrete Pumping Holdings, Inc. 2018 Omnibus Incentive Plan, the Company granted stock-based awards to certain employees in the U.S. and U.K. All awards in the U.S. are restricted stock awards while awards granted to employees in the U.K. are stock options with exercise prices of $0.01. Regardless of where the awards were granted, the awards vested pursuant to one of the following four conditions:

On October 29, 2020 almost all of the then-outstanding stock awards were modified as follows:

As a result of the modifications, and in accordance with ASC 718, the Company updated the fair value of each modified award to be equal to the following:

The fair values for the above awards were calculated using a Monte Carlo simulation model and the updated fair value of the stock award is expensed over the new service period for the new award. As a result of the modifications, the Company recorded $5.9 million of compensation expense on day 1 of the modification as the requisite service period is zero. Outside of the unrecognized compensation expense for all other awards, no incremental costs are expected to be incurred in the future.

As of October 31, 2021, the Company had the following outstanding stock-based awards:

Included in the table below is a summary of the awards outstanding at October 31, 2021, following the modification, including the location, type of award, shares outstanding, unrecognized compensation expense, and the date that expense will be recognized through. The total stock compensation expense recognized for restricted stock awards for the years ended  October 31, 2021 and  October 31, 2020 was $5.8 million and $9.8 million, respectively. The total stock compensation expense recognized for stock options for the years ended  October 31, 2021 and  October 31, 2020 was $0.8 million and $1.6 million, respectively. In addition, while the table below provides a date through which expense will be recognized on a straight-line basis, if at such time the market-based stock awards vest earlier than the Monte Carlo simulation derived service period, expense recognition will be accelerated.

During fiscal 2021, we granted 99,812 stock awards that have a market-based vesting condition. The assumptions used in the Monte Carlo Simulation for the fiscal 2021 grant were stock price on date of grant, a price target expiration date of December 6, 2023, expected volatility of 73% and a risk-free interest rate of 0.5%.

(in thousands, except shares outstanding and fair value amounts)

Note: The $13/$16/$19 Market/Time Based shares noted above relate to the shares not exchanged in the October 29, 2020 modification discussed above.

* The $6.00 market condition price target was achieved on March 29, 2021, and on such date, the remaining unrecognized expense for these awards will be accelerated over the new requisite service period.

** The $8.00 market condition price target was achieved on August 23, 2021, and on such date, the remaining unrecognized expense for these awards will be accelerated over the new requisite service period.

Stock Options 

The following tables summarize stock option activity for the year ended October 31, 2021:

The total intrinsic value of stock options exercised for the years ended October 31, 2021 and October 31, 2020 was $0.9 million and $0.1 million, respectively. The Company realized $0.2 million and $0.0 million in tax benefits related to exercised stock options for the years ended October 31, 2021 and October 31, 2020, respectively.

The following table summarizes information about stock options outstanding at October 31, 2021:

As of October 31, 2021, there was $1.2 million of total unrecognized compensation cost related to stock options that is expected to be realized as an expense by the Company over 1.8 weighted average years.

Restricted Stock Awards

The following table is a summary of Restricted Stock Awards activity for the years ended October 31, 2021 and  October 31, 2020:

As of October 31, 2021, there was $8.7 million of unrecognized compensation expense related to non-vested restricted stock awards that is expected to be realized as an expense by the Company over 1.8 weighted average years.

The Company realized $0.7 million and $0.3 million in tax benefits related to restricted stock award vestings for the years ended October 31, 2021 and  October 31, 2020, respectively.