Quarterly report pursuant to Section 13 or 15(d)

Note 15 - Stock-based Compensation

v3.22.2.2
Note 15 - Stock-based Compensation
9 Months Ended
Jul. 31, 2022
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

Note 15. Stock-Based Compensation

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 generally vest pursuant to one of the following four conditions:

 

(1)

Time-based only – Awards vest in equal installments over a specified period.

 

 

(2)

$6 market-based and time-based vesting – Awards will vest as to first condition once the Company’s stock reaches a closing price of $6.00 for 30 consecutive trading days. Once the first vesting condition is achieved, the stock award will then vest 1/3 annually over a three-year period.

 

 

(3)

$8 market-based and time-based vesting – Awards will vest as to first condition once the Company’s stock reaches a closing price of $8.00 for 30 consecutive trading days. Once the first vesting condition is achieved, the stock award will then vest 1/3 annually over a three-year period.

 

 

(4)

$10 market-based and time-based vesting – Awards will vest as to first condition once the Company’s stock reaches a closing price of $10.00 for 30 consecutive trading days. Once the first vesting condition is achieved, the stock award will then vest 1/3 annually over a three-year period.

 

Included in the table below is a summary of the unvested awards outstanding at July 31, 2022, 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 three-month periods ended  July 31, 2022 and 2021 was $1.2 million and $1.1 million, respectively. The total stock compensation expense recognized for stock options for the three-month periods ended  July 31, 2022 and 2021 was $0.2 million. The total stock compensation expense recognized for restricted stock awards for the nine-month periods ended July 31, 2022 and 2021 was $3.7 million and $4.6 million, respectively. The total stock compensation expense recognized for stock options for the nine-month periods ended July 31, 2022 and 2021 was $0.5 million and $0.6 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 the first quarter of fiscal 2022, the Company granted 69,491 stock awards that have a market-based vesting condition. The assumptions used in the Monte Carlo Simulation for these grants 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%. No equity-based awards were granted during the second or third quarter of fiscal 2022.

 

Location

Type of Award

 

Shares Unvested at July 31, 2022

   

Weighted Average Fair Value

   

Unrecognized Compensation Expense at July 31, 2022

 

Date Expense will be Recognized Through (Straight-Line Basis)

       

U.S.

Time Based Only

    640,797     $ 5.98     $ 2,351,705  

12/6/2023

       

U.S.

$6 Market/Time- Based

    100,462     $ 3.86     $ -  

10/29/2020

       

U.S.

$6 Market/Time- Based

    190,208     $ 8.65     $ 290,379  

3/29/2023

    *  

U.S.

$6 Market/Time- Based

    190,219     $ 8.65     $ 564,972  

3/29/2024

    *  

U.S.

$8 Market/Time- Based

    150,697     $ 3.46     $ -  

10/29/2020

       

U.S.

$8 Market/Time- Based

    190,209     $ 7.45     $ 32,300  

8/23/2022

    **  

U.S.

$8 Market/Time- Based

    190,209     $ 7.45     $ 369,730  

8/23/2023

    **  

U.S.

$8 Market/Time- Based

    190,218     $ 7.45     $ 562,619  

8/23/2024

    **  

U.S.

$10 Market/Time- Based

    150,706     $ 3.15     $ -  

10/29/2020

       

U.S.

$10 Market/Time- Based

    187,591     $ 6.46     $ 243,003  

7/9/2023

       

U.S.

$10 Market/Time- Based

    187,587     $ 6.46     $ 425,064  

7/9/2024

       

U.S.

$10 Market/Time- Based

    187,603     $ 6.46     $ 552,270  

7/9/2025

       

U.S.

$13 Market/Time- Based

    433     $ 4.47     $ -  

5/4/2022

       

U.S.

$13 Market/Time- Based

    433     $ 4.47     $ 361  

5/4/2023

       

U.S.

$13 Market/Time- Based

    434     $ 4.47     $ 674  

5/4/2024

       

U.S.

$16 Market/Time- Based

    433     $ 3.85     $ 36  

8/27/2022

       

U.S.

$16 Market/Time- Based

    433     $ 3.85     $ 408  

8/27/2023

       

U.S.

$16 Market/Time- Based

    434     $ 3.85     $ 644  

8/27/2024

       

U.S.

$19 Market/Time- Based

    433     $ 3.34     $ 122  

11/19/2022

       

U.S.

$19 Market/Time- Based

    433     $ 3.34     $ 408  

11/19/2023

       

U.S.

$19 Market/Time- Based

    434     $ 3.34     $ 595  

11/19/2024

       

U.S.

$10 Market/Time- Based

    4,635     $ 7.28     $ 11,879  

1/31/2023

       

U.S.

$10 Market/Time- Based

    4,635     $ 7.28     $ 20,865  

1/31/2024

       

U.S.

$10 Market/Time- Based

    4,634     $ 7.28     $ 24,615  

1/31/2025

       

U.S.

$10 Market/Time- Based

    18,703     $ 6.83     $ 74,590  

6/30/2023

       

U.S.

$10 Market/Time- Based

    18,711     $ 6.83     $ 95,370  

6/30/2024

       

U.S.

$10 Market/Time- Based

    18,714     $ 6.83     $ 104,470  

6/30/2025

       

U.K.

Time Based Only

    90,431     $ 5.75     $ 298,554  

12/6/2023

       

U.K.

$6 Market/Time- Based

    19,257     $ 3.85     $ -  

10/29/2020

       

U.K.

$6 Market/Time- Based

    27,892     $ 8.36     $ 42,173  

3/29/2023

    *  

U.K.

$6 Market/Time- Based

    27,901     $ 8.36     $ 81,781  

3/29/2024

    *  

U.K.

$8 Market/Time- Based

    28,885     $ 3.45     $ -  

10/29/2020

       

U.K.

$8 Market/Time- Based

    27,892     $ 7.20     $ 4,711  

8/23/2022

    **  

U.K.

$8 Market/Time- Based

    27,892     $ 7.20     $ 53,591  

8/23/2023

    **  

U.K.

$8 Market/Time- Based

    27,901     $ 7.20     $ 81,338  

8/23/2024

    **  

U.K.

$10 Market/Time- Based

    28,886     $ 3.14     $ -  

10/29/2020

       

U.K.

$10 Market/Time- Based

    27,902     $ 6.24     $ 35,387  

7/9/2023

       

U.K.

$10 Market/Time- Based

    27,892     $ 6.24     $ 61,544  

7/9/2024

       

U.K.

$10 Market/Time- Based

    27,901     $ 6.24     $ 79,786  

7/9/2025

       

U.K.

$10 Market/Time- Based

    750     $ 6.83     $ 2,991  

6/30/2023

       

U.K.

$10 Market/Time- Based

    750     $ 6.83     $ 3,823  

6/30/2024

       

U.K.

$10 Market/Time- Based

    750     $ 6.83     $ 4,187  

6/30/2025

       

Total

    3,023,320             $ 6,476,945            

 

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 is being 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 is being accelerated over the new requisite service period.