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Stock-Based Compensation | 12 Months Ended
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Apr. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation The Company has various stock-based compensation plans. The Company issues restricted stock units ("RSUs") and stock options to key employees and non-employee directors. The Company recognizes stock-based compensation costs for those shares expected to vest on a straight-line basis over the requisite service period of the award. The Company records forfeitures as they occur. Stock Incentive Plans At April 30, 2024, the Company had stock option and RSU awards outstanding under three different plans: (1) 2023 stock incentive plan; (2) 2016 employee stock incentive plan; and (3) 2015 non-employee directors equity ownership plan. As of April 30, 2024, there were 749,850 shares of common stock available for future stock-based compensation awards under the Company's stock incentive plans. Methodology Assumptions For purposes of valuing stock option grants, the Company uses the Black-Scholes option-pricing model to value the Company’s stock options. For purposes of determining the fair value of RSUs, the Company uses the closing stock price of its common stock as reported on the NASDAQ Global Select Market on the date of grant. The fair value of the Company's stock options and RSU awards is expensed on a straight-line basis over the vesting period of the stock options and RSUs to the extent the Company believes it is probable the related performance criteria, if any, will be met. The expected volatility assumption is based on the historical volatility of the Company’s stock over a term equal to the expected term of the option granted. The expected term of stock option awards granted is derived from the Company’s historical exercise experience and represents the period of time that stock option awards granted are expected to be outstanding. The expected term assumption incorporates the contractual term of an option grant, which is generally ten years for employees, as well as the vesting period of an award, which is typically three years. The risk-free interest rate is based on the implied yield on a U.S. Treasury constant maturity with a remaining term equal to the expected term of the option granted. The weighted-average assumptions and valuation of the Company’s stock options were as follows:
| FISCAL YEAR ENDED APRIL 30, 2024
Weighted-average fair value of grants | $ | 77.19 |
Expected volatility | 48.65 | %
Expected term in years | 6.5
Risk-free interest rate | 4.32 | %
Expected dividend yield | — | %
Stock Option Activity: Performance-based stock options ("Performance-Based Options") granted and outstanding under the Company’s 2023 stock incentive plan cliff vest at the end of three-years and have contractual terms of ten-years. The Performance-Based Options are subject to performance conditions and continued employment through the vest date. The exercise price of all stock options granted is equal to the fair market value of the Company’s common stock on the option grant date. The Company did not grant stock options during the fiscal years ended April 30, 2023 and 2022. The following table presents a summary of the Company’s stock option activity for the fiscal year ended April 30, 2024 (remaining contractual term in years and exercise prices are weighted-averages):
| NUMBER OF OPTIONS |  | WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM |  | WEIGHTED AVERAGE EXERCISE PRICE |  | AGGREGATE INTRINSIC VALUE (in thousands)
Outstanding at April 30, 2023 | — |  |  | 0 |  | $ | — |  |  | $ | — |
Granted | 92,340 |  |  | 9.4 |  | 77.19 |  |  | $ | 1,375 |
Exercised | — |  |  | 0 |  | — |  |  | $ | — |
Cancelled or expired | (10,260) |  |  | 0 |  | 77.19 |  | $ | 153 |
Outstanding at April 30, 2024 | 82,080 |  |  | 9.4 |  | $ | 77.19 |  |  | $ | 1,222 |
Vested and expected to vest in the future at April 30, 2024 | 82,080 |  |  | 9.4 |  | $ | 77.19 |  |  | $ | 1,222 |
Exercisable at April 30, 2024 | — |  |  | 0 |  | $ | — |  |  | $ | — |
As of April 30, 2024, there was $3.1 million of total unrecognized compensation expense related to unvested stock options granted under the Company's stock-based compensation plans. This expense is expected to be recognized over a weighted-average period of 2.3 years. Restricted Stock Unit Activity: Prior to June 2023, the Company's RSUs granted to employees cliff-vest over a three-year period from date of grant, while RSUs granted to non-employee directors vest daily over a two-year period from date of grant. Directors were granted service-based RSUs only, while employees were awarded both service-based and performance-based RSUs ("PBRSUs"). Beginning in June 2023, service-based RSUs granted to employees vest one-third on each of the first, second and third anniversaries of the grant date and service-based restricted stock units granted to non-employee directors vest daily through the end of the one-year vesting period as long as (i) the recipient continuously remains a member of the Board and (ii) entitle the recipient to receive one share of the Company's common stock per unit vested. Directors were granted service-based RSUs only, while employees were awarded both service-based and performance-based RSUs ("PBRSUs") in fiscal years 2024, 2023, and 2022. The PBRSUs granted in fiscal 2024, 2023, and 2022 are earned based on achievement of a number of goals pertaining to the Company's financial performance during three one-year performance periods and the achievement of certain cultural goals for the three-year period. Employees who satisfy the vesting criteria will receive a proportional amount of PBRSUs based upon the Compensation Committee's assessment of the Company's achievement of the performance criteria. The following table contains a summary of the Company's RSU activity for the fiscal years ended April 30, 2024, 2023, and 2022:
| PERFORMANCE-BASED RSUs |  | SERVICE-BASED RSUs |  | TOTAL RSUs |  | WEIGHTED AVERAGE GRANT DATE FAIR VALUE
Issued and outstanding, April 30, 2021 | 131,684 |  |  | 91,471 |  |  | 223,155 |  |  | $64.81
Granted | 57,392 |  |  | 85,568 |  |  | 142,960 |  |  | $76.97
Cancelled due to non-achievement of performance goals | (1,975) |  |  | — |  |  | (1,975) |  |  | $104.10
Settled in common stock | (19,930) |  |  | (23,242) |  |  | (43,172) |  |  | $71.47
Forfeited | (12,561) |  |  | (6,563) |  |  | (19,124) |  |  | $72.79
Issued and outstanding, April 30, 2022 | 154,610 |  |  | 147,234 |  |  | 301,844 |  |  | $69.10
Granted | 119,772 |  |  | 82,848 |  |  | 202,620 |  |  | $51.77
Cancelled due to non-achievement of performance goals | (38,454) |  |  | — |  |  | (38,454) |  |  | $73.85
Settled in common stock | (19,478) |  |  | (49,916) |  |  | (69,394) |  |  | $63.12
Forfeited | (16,620) |  |  | (9,986) |  |  | (26,606) |  |  | $63.15
Issued and outstanding, April 30, 2023 | 199,830 |  |  | 170,180 |  |  | 370,010 |  |  | $61.77
Granted | 155,062 |  |  | 79,778 |  |  | 234,840 |  |  | $63.41
Cancelled due to non-achievement of performance goals | (9,949) |  |  | — |  |  | (9,949) |  |  | $63.83
Settled in common stock | (45,109) |  |  | (68,034) |  |  | (113,143) |  |  | $65.02
Forfeited | (14,939) |  |  | (8,400) |  |  | (23,339) |  |  | $66.52
Issued and outstanding, April 30, 2024 | 284,895 |  |  | 173,524 |  |  | 458,419 |  |  | $61.85
As of April 30, 2024, there was $17.7 million of total unrecognized compensation expense related to unvested RSUs granted under the Company's stock-based compensation plans. This expense is expected to be recognized over a weighted-average period of 1.7 years. For the fiscal years ended April 30, 2024, 2023, and 2022 stock-based compensation expense was allocated as follows:
| FISCAL YEARS ENDED APRIL 30,
(in thousands) | 2024 |  | 2023 |  | 2022
Cost of sales and distribution | $ | 2,377 |  |  | $ | 2,154 |  |  | $ | 1,299 |
Selling and marketing expenses | 2,364 |  |  | 1,941 |  |  | 1,266 |
General and administrative expenses | 5,941 |  |  | 3,301 |  |  | 2,143 |
Stock-based compensation expense, before income taxes | $ | 10,682 |  |  | $ | 7,396 |  |  | $ | 4,708 |

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent + Details
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