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Employee Benefit Plans | 12 Months Ended
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Apr. 30, 2020
Disclosure Text Block Supplement [Abstract] |
Compensation and Employee Benefit Plans [Text Block] | 12. Employee Benefit Plans Profit Sharing Plan: The Company provides its U.S.-based employees with a profit-sharing plan and trust under § 401(k) of the Internal Revenue Code (“IRC”). This plan allows all eligible employees to defer a portion of their income through voluntary contributions to the plan. In accordance with the provisions of the plan, the Company can make discretionary matching contributions in the form of cash or common stock. For the years ended April 30, 2020 and 2019, the Company contributed 39,403 and 41,211 shares of common stock, respectively. The approximate value of these shares at the date of contribution was $417,000 and $412,000 in fiscal years 2020 and 2019, respectively. [Contributed shares are drawn from the Company’s common stock held in treasury] and are removed at the Company’s original cost of acquisition of such shares on a specific identification basis. In addition to changes in the treasury stock accounts, during fiscal years 2020 and 2019, such transactions increased additional paid in capital by $236,000 and $223,000, respectively. As of April 30, 2020, the plan held a total of 507,204 shares, which are allocated to the accounts of the individual participants. Income Incentive Pool: The Company maintains incentive bonus programs for certain employees which are based on operating profits of the individual subsidiaries to which the employees are assigned. The Company also adopted a plan for the President and Chief Executive Officer of the Company, which formula is based on consolidated pre-tax profits. Under these plans, the Company charged $195,000 to selling and administrative expenses for the fiscal year ended April 30, 2019. There was no incentive bonus recorded for the fiscal year ended April 30, 2020. Employee Stock Plans: The Company has various stock plans, some of which have been approved by the Company’s stockholders, for key management employees, including officers and directors who are employees, certain consultants and independent members of the Board of Directors. The plans are Nonqualified Stock Options (“NQSO”) plans, Incentive Stock Option (“ISO”) plans, and SAR plans. Under these plans, options or SAR are granted at the discretion of the Stock Option Committee at an exercise price not less than the fair market value of the Company’s common stock on the date of grant. Typically, options and SAR vest over a four-year period from the date of grant. The options and SAR generally expire ten years after the date of grant (the most recent SAR awards expire in five years) and are subject to certain restrictions on transferability of the shares obtained on exercise. Under the Company’s 2005 Stock Award Plan (“Plan”) the Company provided option holders the opportunity to exercise stock options either by paying the exercise price for the shares or to do a cashless exercise whereby the individual receives the net number of shares of stock equal in value to the exercised number of shares times the difference between the current market value of the Company’s stock and the exercise price. Under the Plan, instruments granted under other plans which expire, are canceled, or are tendered in the exercise of such instruments, increase the shares available under the Plan. As of April 30, 2020, eligible employees and directors had been granted SAR representing approximately 2,384,000 shares of Company stock, of which approximately 1,060,000 shares were outstanding and approximately 900,000 shares with a weighted average exercise price of $9.85 were exercisable. As of April 30, 2019, eligible employees and directors had been granted SAR representing approximately 2,384,000 shares of Company stock, of which approximately 1,500,000 shares were outstanding and approximately 1,216,000 shares with a weighted average exercise price of $9.12 were exercisable. When the SAR become exercisable, the Company will settle the SAR by issuing to exercising recipients the number of shares of stock from treasury stock, if available, equal to the appreciated value of the Company’s stock between the grant date and exercise date. At the time of exercise, the quantity of shares under the SAR grant equal to the exercise value divided by the then market value of the shares will be returned to the pool of available shares for future grant under the Plan. During the year ended April 30, 2020, employees exercised SAR representing 171,250 shares of Company stock and received 92,212 shares of Company stock. The 79,038 share difference was returned to the pool of available shares and may be used for future grants. During the year ended April 30, 2019, employees exercised SAR representing 145,750 shares of Company stock and received 71,111 shares of Company stock. The 74,639 share difference was returned to the pool of available shares and may be used for future grants. The excess of the consideration received over the par value of the common stock or cost of treasury stock issued under both types of option plans is recognized as an increase in additional paid-in capital. The following table summarizes information about stock option and SARs activity for the years ended April 30, 2020 and 2019:
|  | Stock Options and Stock Appreciation Rights |
|  |  |  |  |  |  |  |  | Weighted Average |  |  |  |
|  |  |  |  |  | Weighted- |  | Remaining |  |  |  |
|  |  |  |  |  | Average |  | Contractual |  | Aggregate |
|  | Shares |  |  | Exercise Price |  | Term |  | Intrinsic Value |
Outstanding – April 30, 2018 |  |  | 1,488,000 |  |  | $ | 8.93 |  | 3.7 years |  |  |  |
Granted |  |  | 162,500 |  |  |  | 8.50 |  |  |  |  |  |
Exercised |  |  | (145,750 | ) |  |  | 5.95 |  |  |  | $ | 889,588 |
Expired or Canceled |  |  | (5,000 | ) |  |  | 9.55 |  |  |  |  |  |
Outstanding – April 30, 2019 |  |  | 1,499,750 |  |  | $ | 9.17 |  | 3.0 years |  | $ | 6,660,150 |
Granted |  |  | - |  |  |  | - |  |  |  |  |  |
Exercised |  |  | (171,250 | ) |  |  | 5.48 |  |  |  |  | 781,680 |
Expired or Canceled |  |  | (269,000 | ) |  |  | 9.26 |  |  |  |  |  |
Outstanding – April 30, 2020 |  |  | 1,059,500 |  |  | $ | 9.74 |  | 2.2 years |  | $ | 5,416,783 |
Exercisable |  |  | 896,275 |  |  | $ | 9.85 |  | 2.1 years |  | $ | 4,739,209 |
Available for future grants |  |  | 417,004 |  |  |  |  |  |  |  |  |  |
As of April 30, 2020, total unrecognized compensation cost related to non-vested options and SARs under the plans was approximately $300,000. These costs are expected to be recognized over a weighted average period of 1.7 years. During the years ended April 30, 2020 and 2019, 100,625 and 104,250 shares, respectively, vested, the fair value of which was approximately $339,000 and $403,000, respectively. There were no SARs granted during the fiscal year 2020. The weighted average grant date fair value of SARs granted during the year ended April 30, 2019, was approximately $3.01. Stock-based compensation costs capitalized as part of work in process inventory or included in the cost of sales of programs on which the Company recognizes revenue under the POC method were approximately $110,000 and $190,000 for the years ended April 30, 2020 and 2019, respectively. Selling and administrative expenses included stock-based compensation expense of approximately $141,000 and $298,000 for the years ended April 30, 2020 and 2019, respectively. The Company classifies cash flows resulting from the tax benefits from tax deductions recognized upon the exercise of stock options or SAR (tax benefits) as financing cash flows. The Company did not recognize any tax benefits from the exercise of stock options and SAR for the fiscal years presented. Restricted Stock Plan and Other Issuances: During fiscal year 1990, the Company adopted a Restricted Stock Plan which provided that key management employees could be granted rights to purchase an aggregate of 375,000 shares of the Company’s common stock. The grants, transferability restrictions and purchase price were determined at the discretion of a special committee of the Board of Directors. The purchase price could not be less than the par value of the common stock. Transferability of shares is restricted for a four-year period, except in the event of a change in control as defined therein. As a result of the adoption by the Company’s stockholders of the 2005 Stock Award Plan, the Restricted Stock Plan was discontinued. No additional grants will be made under this plan. As of April 30, 2020, there are no outstanding shares available for purchase. As of April 30, 2019, grants for 7,500 shares were available to be purchased at a price of $4.00 per share. During the years ended April 30, 2020 and 2019 the Company issued 1,850 shares and 1,100 shares from treasury stock, respectively, to select employees for milestone years of service to the Company. These shares are common stock and are fully vested at time of issuance. In fiscal year 2020 the Company elected to issue Restricted Stock Units (“RSUs”) to directors, officers, and other key employees pursuant to the 2005 Stock Award Plan. The fair value of these awards is equivalent to the market value of our common stock on the grant date. RSUs are not shares of our common stock and do not have any rights or privileges thereof, including voting or dividend rights. On the applicable vesting date, the holder of an RSU becomes entitled to a share of our common stock. RSUs are subject to certain restrictions and forfeiture provisions prior to vesting. During the year ended April 30, 2020, the Company granted 13,000 RSUs, at a grant date fair value of $11.38, that will vest over a four-year period. Deferred Compensation Agreements: The Company has a series of agreements with key employees providing for the payment of benefits upon retirement or death. Under these agreements, each key employee receives specified retirement payments for the remainder of the employee’s life with a minimum payment of ten years’ benefits to either the employee or his or her beneficiaries. The agreements also provide for lump sum payments upon termination of employment without cause and reduced benefits upon early retirement. The Company pays the benefits out of its working capital but has also purchased whole life or term life insurance policies on the lives of certain of the participants to cover the optional lump sum obligations of the agreements upon the death of the participant. Deferred compensation expense charged to selling and administrative expenses during the years ended April 30, 2020 and 2019 was approximately $640,000 and $1.3 million, respectively. Life Insurance Policies and Cash Held in Trust: The whole-life insurance policies on the lives of certain participants covered by deferred compensation agreements have been placed in a trust. Upon the death of any insured participant, cash received from life insurance policies in excess of the Company’s deferred compensation obligations to the estate or beneficiaries of the deceased, are also placed in the trust. These assets belong to the Company until a change of control event, as defined in the trust agreement, should occur. At that time, the Company is required to add sufficient cash to the trust so as to match the deferred compensation liability described above. Such funds will be used to continue the deferred compensation arrangements following a change of control.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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