| Share-Based Payment Arrangement [Text Block] |
Note 16. 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. |
The following table summarizes realized compensation expense related to stock options and restricted stock awards in the accompanying condensed consolidated statements of operations:
| |
|
Twelve Months Ended October 31, |
|
| (in thousands) |
|
2023 |
|
|
2022 |
|
| Compensation expense – stock options |
|
$ |
465 |
|
|
$ |
611 |
|
| Compensation expense – restricted stock awards |
|
|
3,382 |
|
|
|
4,423 |
|
| Total |
|
$ |
3,847 |
|
|
$ |
5,034 |
|
Stock Options
The following tables summarize stock option activity for the year ended October 31, 2023:
| |
|
Options |
|
|
Weighted average grant date fair value |
|
|
Weighted average exercise price |
|
| Outstanding stock options, October 31, 2021 |
|
|
1,684,193 |
|
|
$ |
6.85 |
|
|
$ |
1.63 |
|
| Granted |
|
|
4,500 |
|
|
$ |
7.43 |
|
|
$ |
0.01 |
|
| Cancelled/Forfeited |
|
|
(1,586 |
) |
|
$ |
6.67 |
|
|
$ |
0.01 |
|
| Exercised |
|
|
(197,779 |
) |
|
$ |
6.70 |
|
|
$ |
0.44 |
|
| Outstanding stock options, October 31, 2022 |
|
|
1,489,328 |
|
|
$ |
6.42 |
|
|
$ |
1.79 |
|
| Exercised |
|
|
(112,774 |
) |
|
$ |
6.71 |
|
|
$ |
0.39 |
|
| Outstanding stock options, October 31, 2023 |
|
|
1,376,554 |
|
|
$ |
6.40 |
|
|
$ |
1.90 |
|
The total intrinsic value of stock options exercised for the years ended October 31, 2023 and 2022 was $0.9 million and $1.3 million, respectively. The Company realized $0.1 million and $0.2 million in tax benefits related to exercised stock options for the years ended October 31, 2023 and 2022, respectively.
The following table summarizes information about stock options outstanding at October 31, 2023:
| |
|
|
|
|
Options Outstanding |
|
|
Options Exercisable |
|
| |
Exercise price |
|
|
Number of options |
|
|
Weighted average exercise price |
|
|
Weighted average remaining contractual life (yrs) |
|
|
Aggregate Intrinsic Value |
|
|
Number of options |
|
|
Weighted average exercise price |
|
|
Weighted average remaining contractual life (yrs) |
|
|
Aggregate Intrinsic Value |
|
| |
$ |
0.01 |
|
|
|
315,671 |
|
|
$ |
0.01 |
|
|
|
6.8 |
|
|
$ |
2,216 |
|
|
|
78,057 |
|
|
$ |
0.01 |
|
|
|
6.8 |
|
|
$ |
548 |
|
| |
$ |
0.87 |
|
|
|
736,810 |
|
|
$ |
0.87 |
|
|
|
1.3 |
|
|
|
4,539 |
|
|
|
736,810 |
|
|
$ |
0.87 |
|
|
|
1.3 |
|
|
$ |
4,539 |
|
| |
$ |
6.09 |
|
|
|
324,073 |
|
|
$ |
6.09 |
|
|
|
2.4 |
|
|
|
305 |
|
|
|
324,073 |
|
|
$ |
6.09 |
|
|
|
2.4 |
|
|
$ |
305 |
|
| |
Total |
|
|
|
1,376,554 |
|
|
$ |
1.90 |
|
|
|
2.8 |
|
|
$ |
7,059 |
|
|
|
1,138,940 |
|
|
$ |
2.30 |
|
|
|
2.0 |
|
|
$ |
5,392 |
|
As of October 31, 2023, there was $0.1 million of total unrecognized compensation cost related to stock options that is expected to be realized as an expense by the Company over 0.9 weighted average years.
Restricted Stock Awards
The following table is a summary of Restricted Stock Awards activity for the years ended October 31, 2023 and 2022:
| |
|
Units |
|
|
Weighted average grant-date fair value |
|
| Unvested as of October 31, 2021 |
|
|
3,071,391 |
|
|
|
4.98 |
|
| Granted |
|
|
134,481 |
|
|
|
7.43 |
|
| Vested |
|
|
(768,330 |
) |
|
|
4.86 |
|
| Cancelled/Forfeited |
|
|
(84,082 |
) |
|
|
5.81 |
|
| Unvested as of October 31, 2022 |
|
|
2,353,460 |
|
|
|
5.14 |
|
| Granted |
|
|
16,007 |
|
|
|
6.96 |
|
| Vested |
|
|
(788,275 |
) |
|
|
4.54 |
|
| Cancelled/Forfeited |
|
|
(35,947 |
) |
|
|
3.97 |
|
| Unvested as of October 31, 2023 |
|
|
1,545,245 |
|
|
|
5.49 |
|
As of October 31, 2023, there was $1.1 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 0.9 weighted average years.
The Company realized $1.3 million and $1.4 million in tax benefits related to restricted stock award vestings for the years ended October 31, 2023 and 2022, respectively.
|