The Predecessor accounted for share-based awards in accordance with ASC Topic (“ASC ), which requires the fair value of stock-based compensation awards to be amortized as an expense over the vesting period. Stock-based compensation awards are valued at fair value on the date of grant. As a result of the Business Combination, all unvested awards were immediately vested, resulting in an amount of million of stock-based compensation expense presented “on the line” (see Business Combination footnote). Stock-based compensation for the Predecessor period from to totaled million, and has been included in general and administrative expenses on the accompanying consolidated statements of income. 

 

 

The Company rolled forward certain vested options from the Predecessor to equivalent vested options in the Successor. 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 the Predecessor. As of share-based awards have been granted by the Successor and therefore, expense has been recorded.

 

During the Company established the Equity Incentive Plan (as amended, the Plan”). Under the Plan, the Company award stock options, restricted stock or other equity awards to certain employees, directors and consultants of the Company and its affiliates, including Brundage-Bone and Eco-Pan. The Plan permits the issuance of up to shares of the Company’s common stock. The vesting period and term of each option are determined at the date of grant and generally does exceed years. The options include time-vesting and/or performance-based vesting criteria. The options be subject to forfeiture if certain vesting requirements are met.

 

As of there were shares of the Company’s common stock available for grant under the Plan. A summary of option activity for the years ended and is as follows:

 

										Weighted-
						Weighted-				Average
						Average				Remaining				Aggregate
						Exercise				Contractual				Intrinsic
		Options				Price				Life				Value
Options outstanding, October 31, 2016			1,529,704			$	2.48				8.27			$	-
Granted			227,280				17.50
Forfeited			(286,119	)			2.74
Cancelled			(70,281	)			2.48
Options outstanding, October 31, 2017			1,400,584			$	4.86				7.41			$	-
Granted			-				-
Forfeited			(141,024	)			17.50
Cancelled			-				-
Options outstanding, October 31, 2018			1,259,560			$	4.55				7.68			$	-

 

There were options granted to employees during the year ended The options granted to employees during the year ended included both time-vesting and performance-based vesting criteria. Of the options granted, are subject to time vesting only. The time-vesting criteria specify that percent of the options will vest on each of the anniversaries of the grant date, subject to the holder’s continued service through the vesting date. The remaining options granted include both time-vesting and performance-based vesting criteria. For these grants, percent of the options are subject to time vesting and percent are subject to performance-based vesting. The time-vesting criteria specify that percent of the options shall vest on each of the anniversaries the grant date, subject to the holder’s continued service through the vesting date. The performance criteria stipulate that up to percent of the options shall vest on each of the anniversaries of the grant date, based on the Company’s annual earnings before income taxes, depreciation and amortization (EBITDA) for the applicable year and provided that the Companies achieve a minimum annual EBITDA amount for that particular year, subject to the holder’s continued service through the vesting date.

 

The Company repurchased and cancelled options during the year ended for The repurchase price was less than the fair value of the options at the time of the repurchase and accordingly, incremental compensation cost was recorded. The Company did repurchase any options during the year ended

 

Compensation expense subject to the performance-based vesting criteria is recognized over the requisite service period only if the performance criteria are probable of being met. The fiscal year and EBITDA target was achieved by the Company and, therefore, the Company has recognized compensation expense related to those performance tranches. Compensation expense for time-based vesting options is recognized on a straight-line basis over the requisite service period. The fiscal year EBITDA target was met, thus compensation expense was recorded for the fiscal year performance vesting tranche with the exception of individuals for which the Company waived the performance- based vesting criteria. Total compensation expense recognized by the Company for the years ended and is and respectively, which has been included in general and administrative expenses on the accompanying consolidated statements of income.

 

As of stock-based compensation yet recognized in income is which will be recognized over a weighted-average period of years. Included in this amount is of expense related to the performance-based awards, which will only be recognized if achievement of the performance targets is determined to be probable.

 

The following is a summary of options outstanding and exercisable as of

				Options Outstanding												Options Exercisable
								Weighted-
								Average				Weighted-								Weighted-
				Number of				Remaining				Average				Number of				Average
Exercise Price				Options				Contractual Life				Exercise Price				Options				Exercise Price
$	2.48				1,085,888				7.18			$	2.48				609,368			$	2.48
	17.50				173,672				10.81				17.50				86,024				17.50
					1,259,560				5.74			$	4.55				695,392			$	4.34

The Company did grant any options during The weighted-average grant date fair value of options granted during was per share. The fair value of share-based payments was estimated using the Black-Scholes option-pricing model requiring the use of subjective valuation assumptions. The Black-Scholes valuation model requires several inputs, including the expected stock price volatility. Volatility was determined using observations of historical stock prices for comparable public companies. The Company’s options have characteristics significantly different from those of traded options, and changes in input assumptions can materially affect the fair value estimates.

 

There were options granted during The fair value of options granted during and was estimated using the following assumptions:

 

		2017		2016
Risk-free interest rate		1.61%		1.05%	-	1.62%
Expected dividend yield		None			None
Expected volatility factor		45.37%		29.54%	-	35.27%
Expected option life (in years)		6.5		4	-	5
Actual forfeitures		None			0