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Stockholders' Equity (Tables)
 12 Months Ended
Apr. 30, 2021
Equity [Abstract]  
Share Based Compensation Stock Options Activity

The number of shares and weighted average exercise prices of options for the fiscal years ended April 30, 2021, 2020, and 2019 are as follows:

 

 

 

For the Year Ended April 30,

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

Average

 

 

 

 

 

 

Average

 

 

 

Shares

 

 

Exercise Price

 

 

Shares

 

 

Exercise Price

 

 

Shares

 

 

Exercise Price

 

Options outstanding, beginning of year

 

 

200,667

 

 

$

7.70

 

 

 

267,761

 

 

$

6.76

 

 

 

316,160

 

 

$

6.69

 

Exercised during the period

 

 

(200,667

)

 

 

7.67

 

 

 

(67,094

)

 

 

3.97

 

 

 

(48,399

)

 

 

6.28

 

Canceled/forfeited during period

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

Options outstanding, end of period

 

—

 

 

—

 

 

 

200,667

 

 

$

7.70

 

 

 

267,761

 

 

$

6.76

 

Weighted average remaining contractual life

 

—

 

 

 

 

 

 

0.43 years

 

 

 

 

 

 

2.35 years

 

 

 

 

 

Options exercisable, end of period

 

—

 

 

—

 

 

 

200,667

 

 

$

7.70

 

 

 

267,761

 

 

$

6.76

 

Weighted average remaining contractual life

 

—

 

 

 

 

 

 

0.43 years

 

 

 

 

 

 

2.35 years

 

 

 

 

 
Summary of Stock Compensation Expense

 

The following table summarizes stock compensation expense by line item for the fiscal years ended April 30, 2021, 2020, and 2019 (in thousands):

 

 

 

For the Years Ended April 30,

 

 

 

 

2021

 

 

 

2020

 

 

 

2019

 

Cost of sales

 

$

740

 

 

$

667

 

 

$

694

 

Research and development

 

 

71

 

 

 

79

 

 

 

62

 

Selling and marketing

 

 

767

 

 

 

155

 

 

 

337

 

General and administrative

 

 

3,128

 

 

 

1,456

 

 

 

5,854

 

Total stock-based compensation

 

$

4,706

 

 

$

2,357

 

(a)

$

6,947

 

 

 

(a)

The decrease in general and administrative stock-based compensation expense from fiscal 2019 was because of the separation of our former President and Chief Executive Officer.

 
Share Based Payment Award Performance Shares Valuation Assumptions We incorporate the following variables into the valuation model:

 

 

For the Years Ended April 30,

 

 

 

2021

 

 

2020

 

 

 

2019

 

Grant date fair market value

 

 

 

 

 

 

 

 

 

 

 

 

Smith & Wesson Brands, Inc

$              16.99 - 17.27

 

 

$

7.80

 

 

 

$

9.85

 

Russell 2000 Index

$    1,526.46 - 1,571.21

 

 

$

1,138.78

 

 

 

$

1,591.21

 

Volatility (a)

 

 

 

 

 

 

 

 

 

 

 

 

Smith & Wesson Brands, Inc

59.09% - 61.34%

 

 

 

54.02

%

 

 

 

45.19

%

Russell 2000 Index

27.62% - 29.27%

 

 

 

24.66

%

 

 

 

15.65

%

Correlation coefficient (b)

0.1242 - 0.1302

 

 

 

0.11

 

 

 

0.14

 

Risk-free interest rate (c)

0.16% - 0.22%

 

 

 

0.35

%

 

 

 

2.23

%

Dividend yield (d)

 

0.95

%

 

 

0

%

 

 

 

0

%

 

(a)

Expected volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years.

(b)

The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions.

(c)

The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period.

(d)

We did not pay dividends in fiscal 2020 and 2019.

Summary of Activity for Unvested RSUs and PSUs

 

A summary of activity for unvested RSUs and PSUs for fiscal years 2021, 2020, and 2019 is as follows:

 

 

 

For the Year Ended April 30,

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

Total # of

 

 

Average

 

 

Total # of

 

 

Average

 

 

Total # of

 

 

Average

 

 

 

RSUs and

 

 

Grant Date

 

 

RSUs and

 

 

Grant Date

 

 

RSUs and

 

 

Grant Date

 

 

 

PSUs

 

 

Fair Value

 

 

PSUs

 

 

Fair Value

 

 

PSUs

 

 

Fair Value

 

RSUs and PSUs outstanding, beginning of period

 

 

1,313,974

 

 

$

10.86

 

 

 

1,631,631

 

 

$

15.44

 

 

 

1,442,317

 

 

$

17.80

 

Awarded

 

 

270,315

 

 

 

16.54

 

 

 

578,300

 

 

 

5.75

 

 

 

541,785

 

 

 

10.65

 

Vested

 

 

(407,545

)

 

 

14.57

 

 

 

(296,139

)

 

 

17.05

 

 

 

(206,572

)

 

 

19.11

 

Forfeited

 

 

(180,865

)

 

 

15.18

 

 

 

(599,818

)

 

 

15.34

 

 

 

(145,899

)

 

 

16.11

 

RSUs and PSUs outstanding, end of period

 

 

995,879

 

 

$

11.14

 

 

 

1,313,974

 

 

$

10.86

 

 

 

1,631,631

 

 

$

15.44

 
Schedule of Assumptions used in Valuing ESPP Purchases

The following assumptions were used in valuing our ESPP purchases during the years ended April 30, 2021, 2020, and 2019:

 

 

For the Years Ended April 30,

 

 

2021

 

 

2020

 

 

2019

 

Risk-free interest rate

 

0.08

%

 

 

1.24

%

 

 

2.21

%

Expected term (a)

6 months

 

 

4 & 6 months

 

 

6 months

 

Expected volatility (b)

 

70.93

%

 

 

63.6

%

 

 

45.3

%

Dividend yield (c)

 

1.17

%

 

 

0

%

 

 

0

%

 

 

(a)

The 2nd purchase period of 2020 was abbreviated because of the timing of the spin-off of our outdoor products and accessories business.

 

(b)

We believe our expected volatility increased in fiscal 2020 primarily due to market and stock price fluctuations as a result of the COVID-19 pandemic.

 

(c)

We did not pay dividends in fiscal 2020 and 2019.