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Note 5 - Stock-based Compensation
 3 Months Ended
May 05, 2018
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
5
. Stock-based Compensation
 
On
March 14, 2017,
the Company’s Board of Directors (the Board) adopted, subject to stockholder approval, the Build-A-Bear Workshop, Inc.
2017
Omnibus Incentive Plan (the Incentive Plan). On
May 11, 2017,
at the Company’s
2017
Annual Meeting of Stockholders, the Company’s stockholders approved the Incentive Plan. The Incentive Plan, which is administered by the Compensation and Development Committee of the Board, permits the grant of stock options (including both incentive and non-qualified stock options), stock appreciation rights, restricted stock, cash and other stock-based awards, some of which
may
be performance-based pursuant to the terms of the Incentive Plan. The Board
may
amend, modify or terminate the Incentive Plan at any time, except as otherwise provided in the Incentive Plan. The Incentive Plan will terminate on
March 14, 2027,
unless earlier terminated by the Board. The number of shares of the Company’s common stock authorized for issuance under the Incentive Plan is
1,000,000,
plus shares of stock subject to outstanding awards made under the Company’s Third Amended and Restated
2004
Stock Incentive Plan that on or after
March 21, 2017
may
be forfeited, expire or be settled for cash.
 
For the
thirteen
weeks ended
May 5, 2018
and
April 29, 2017,
selling, general and administrative expense includes
$0.8
million and
$1.2
million, respectively, of stock-based compensation expense. As of
May 5, 2018,
there was
$5.0
million of total unrecognized compensation expense related to unvested restricted stock and option awards which is expected to be recognized over a weighted-average period of
1.7
years.
 
The following table is a summary of the balances and activity for stock options for the
five
week transition period ended
February 3, 2018
and the
thirteen
weeks ended
May 5, 2018:
 
   
Options
  
   
Shares
    
Weighted
Average Exercise
Price
  
Outstanding, December 30, 2017
    
791,567
     $
9.67
  
Granted
(1)
    
213,687
      
8.60
  
Exercised
(1)
    
(2,484)
      
5.11
  
Forfeited
    
—
      
-
  
Canceled or expired
    
—
      
-
  
Outstanding, May 5, 2018
    
1,002,770
     $
9.45
  
                                   (
1
) -
No
options were granted or exercised for the
five
weeks ended
February 3, 2018.
 
The following table is a summary of the balances and activity for the plan related to time-based and performance-based restricted stock for the
thirteen
weeks ended
May 5, 2018
and
five
week transition period ended
February 3, 2018:
 
   
Restricted Stock
    
Performance Shares
  
   
Shares
    
Weighted
Average Grant
Date Fair Value
    
Shares
    
Weighted
Average Grant
Date Fair Value
  
Outstanding, December 30, 2017
    
361,539
     $
10.97
      
289,615
     $
13.66
  
Granted
(1)
    
148,319
      
8.61
      
83.256
      
8.60
  
Vested
(1)
    
(132,076)
      
12.25
      
(6,323)
      
20.58
  
Forfeited
(1)
    
(7,693)
      
10.72
      
(1,280)
      
13.69
  
Canceled or expired
    
—
      
—
      
(50,000)
      
20.80
  
Outstanding, May 5, 2018
    
370,089
     $
9.58
      
315,268
     $
11.05
  
       (
1
) - Restricted stock for the
five
weeks ended
February 3, 2018
included the following activity: granted
3,479
shares with a weighted average grant date fair value of
$9.25,
vested
129
shares with a weighted average grant date fair value of
$11.65
and forfeited
7,477
shares with a weighted average grant date fair value of
$10.70.
No
performance shares activity occurred for the
five
weeks ended
February 3, 2018.
 
The total fair value of shares vested during the
thirteen
weeks ended
May 5, 2018
and
April 29, 2017
was
$1.7
million and
$1.5
million, respectively and immaterial for the
five
weeks ended
February 3, 2018.
 
In
March 2018,
the Company awarded
three
-year performance-based restricted stock subject to the achievement of pre-established consolidated total pre-tax income growth objectives for fiscal
2018,
2019
and
2020.
In addition, the Company awarded
three
-year performance-based restricted stock subject to the achievement of pre-established consolidated revenue growth objectives for fiscal
2018,
2019
and
2020.
These shares have a payout opportunity ranging from
25%
to
200%
of the target number of shares. In
2017,
the Company awarded
three
-year performance-based restricted stock subject to the achievement of pre-established pre-tax income growth objectives for
2017,
2018
and
2019.
In
2016,
the Company awarded 
three
-year performance-based restricted stock subject to the achievement of pre-established cumulative total revenue goals for fiscal
2016,
2017
and
2018.
 
The outstanding performance shares as of
May 5, 2018
and
February 3, 2018
consist of the following:
 
   
May 5 ,2018
    
February 3, 2018
  
Earned shares subject to time-based restrictions at actual    
-
      
6,325
  
                 
Unearned shares subject to performance-based restrictions at target:
                
2015 - 2017 consolidated total revenues    
-
      
50,000
  
2016 - 2018 consolidated cumulative total revenues
    
148,115
      
149,393
  
2017 - 2019 consolidated pre-tax income growth objectives
    
83,897
      
83,897
  
2018 - 2020 consolidated total revenues growth objectives    
20,756
      
-
  
2018 - 2020 consolidated pre-tax income growth objectives
    
62,500
      
-
  
Performance shares outstanding, May 5, 2018
    
315,268
      
289,615