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Note 6 - Stock-based Compensation

3 Months Ended

Apr. 30, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

6. Stock-based Compensation

On April 14, 2020, the Board of Directors (the “Board”) of Build-A-Bear Workshop, Inc. (the “Company”) adopted, subject to stockholder approval, the Build-A-Bear Workshop, Inc. 2020 Omnibus Incentive Plan (the “2020 Incentive Plan”). On June 11, 2020, at the Company’s 2020 Annual Meeting of Stockholders (the “Annual Meeting”), the Company’s stockholders approved the 2020 Incentive Plan. The 2020 Incentive Plan, which is administered by the Compensation and Development Committee of the Board (the "Compensation Committee"), permits the granting of stock options (including both incentive and non-qualified stock options), stock appreciation rights, other stock-based awards, including restricted stock and restricted stock units, cash-based awards, and performance awards pursuant to the terms of the 2020 Incentive Plan. The 2020 Incentive Plan will terminate on April 14, 2030, unless terminated earlier by the Board. The number of shares of the Company’s common stock authorized for issuance under the 2020 Incentive Plan is 1,000,000, plus shares of stock that remained available for issuance under the Build-A-Bear Workshop, Inc. 2017 Omnibus Incentive Plan (the “2017 Incentive Plan”) at the time the 2020 Incentive Plan was approved by the Company’s stockholders, and shares that are subject to outstanding awards made under the 2017 Incentive Plan that on or after April 14, 2020 may be forfeited, expire or be settled for cash.

For the thirteen weeks ended April 30, 2022 and May 1, 2021, Selling, general and administrative expense included stock-based compensation expense of $0.7 million and $0.6 million, respectively. As of April 30, 2022, there was $5.9 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 2.1 years.

The following table is a summary of the balances and activity for stock options for the thirteen weeks ended April 30, 2022:

		*Options*
		*Shares*				*Weighted Average Exercise Price*
Outstanding, January 29, 2022			318,569			$	13.23
Granted			-				-
Exercised			(4,749	)			8.85
Forfeited			-				-
Canceled or expired			-				-
Outstanding, April 30, 2022			313,820			$	13.30

The following table is a summary of the balances and activity related to time-based and performance-based restricted stock for the thirteen weeks ended April 30, 2022:

		*Time-Based Restricted Stock*								*Performance-Based Restricted Stock*
		*Shares*				*Weighted Average Grant Date Fair Value*				*Shares*				*Weighted Average Grant Date Fair Value*
Outstanding, January 29, 2022			463,580			$	5.43				306,280			$	3.56
Granted			56,847				18.03				84,579				18.03
Vested			(233,442	)			4.59				(88,721	)			5.61
Forfeited			-				-				-				-
Canceled or expired			-				-				(7,090	)			5.61
Outstanding, April 30, 2022			286,984			$	8.60				295,048			$	8.13

The total fair value of shares vested during the thirteen weeks ended April 30, 2022 and May 1, 2021 was $1.6 million and $1.6 million, respectively.

The outstanding performance shares as of April 30, 2022 consist of the following:

		*Performance Shares*

Unearned shares subject to performance-based restrictions at target:
2020 - 2022 consolidated liquidity and strategic performance objectives			89,168
2020 - 2022 consolidated earnings before interest and taxes (EBIT) objectives			68,206
2021 - 2023 consolidated, cumulative earnings before interest, taxes, depreciation and amortization (EBITDA) objectives			39,821
2021 - 2023 consolidated revenue growth objectives			13,274
2022 - 2024 consolidated, earnings before interest, taxes, depreciation and amortization (EBITDA) growth objectives			63,435
2022 - 2024 consolidated revenue growth objectives			21,145
Performance shares outstanding, April 30, 2022			295,048