XML 30 R16.htm IDEA: XBRL DOCUMENT
v3.25.2

Note 9 - Stock-based Compensation | 6 Months Ended
--- | ---
Jul. 31, 2025
Notes to Financial Statements |
Share-Based Payment Arrangement [Text Block] | (9) Stock-Based Compensation Equity Incentive Plans In June 2021, Skillsoft adopted the 2020 Omnibus Incentive Plan, which was amended on June 6, 2024 (as so amended, the “2020 Plan”). The 2020 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, other equity-based awards, and cash-based incentive awards to employees, directors, and consultants of Skillsoft. Under the 2020 Plan, 655,295 shares were initially made available for issuance, increased by amendment to 2,908,333 shares. The 2020 Plan also includes an annual increase on January 1 each year, in an amount equal to 5.0% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year. Our Talent and Compensation Committee may act prior to January 1 of a given year to provide that there will be no January 1 increase for such year or that the increase for such year will be a lesser number of shares of common stock than provided for in the 2020 Plan. As of July 31, 2025, a total of 271,187 shares of common stock remain available for issuance under the 2020 Plan. In May 2024, Skillsoft adopted the Skillsoft Corp. 2024 Employment Inducement Incentive Award Plan, amended as of June 5, 2025, to increase the number of shares authorized for issuance thereunder to a total of 400,000 (as so amended the “Inducement Plan”). The Inducement Plan provides for inducement grants of nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other equity-based awards, and cash-based incentive awards to new hires, or individuals being rehired following a bona fide period of non-employment with us, in compliance with Section 303A.08 of the New York Stock Exchange Listed Company Manual. As of July 31, 2025, a total of 206,250 shares of common stock remain available for issuance under the Inducement Plan. Stock Options Under the 2020 Plan, all employees are eligible to receive incentive share options, and all employees, directors and consultants are eligible to receive non-statutory share options. The options generally vest over four years and have a term of ten years. Vested options under the plan generally expire not later than 90 days following termination of employment or service or twelve months following an optionee’s death or disability. The fair value of stock options is determined on the grant date and amortized over the vesting period on a straight-line basis. The following summarizes the stock option activity for the six months ended July 31, 2025:
|  |  |  |  |  |  |  |  |  | Weighted - |  |  |  |  |
|  |  |  |  |  | Weighted - |  |  | Average |  |  |  |  |
|  |  |  |  |  | Average |  |  | Remaining |  |  | Aggregate |
|  |  |  |  |  | Exercise |  |  | Contractual |  |  | Intrinsic Value |
|  | Shares |  |  | Price |  |  | Term (Years) |  |  | (in thousands) |
Outstanding, January 31, 2025 |  |  | 30,750 |  |  | $ | 215.00 |  |  |  | 6.4 |  |  | $ | — |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding, July 31, 2025 |  |  | 30,750 |  |  |  | 215.00 |  |  |  | 4.1 |  |  |  | — |
Vested and exercisable, July 31, 2025 |  |  | 30,750 |  |  |  | 215.00 |  |  |  | 4.1 |  |  |  | — |
The stock option expense was fully recognized during the fiscal quarter ended July 31, 2025. Time-Based Restricted Stock Units Restricted stock units (“RSUs”) represent a right to receive one share of Skillsoft’s common stock that is both non-transferable and forfeitable unless and until certain conditions are satisfied. Other than RSUs currently granted to our non-employee directors, which vest upon the earlier of the first anniversary of the grant date and Skillsoft’s next annual meeting of stockholders, time-based RSUs generally vest ratably over a three or four-year period, subject to continued employment through each anniversary. The fair value of RSUs is determined on the grant date and is amortized over the vesting period on a straight-line basis. The following summarizes the time-based RSU activity for the six months ended July 31, 2025:
|  |  |  |  |  | Weighted - |  |  | Aggregate |
|  |  |  |  |  | Average Grant |  |  | Intrinsic Value |
|  | Shares |  |  | Date Fair Value |  |  | (in thousands) |
Unvested balance, January 31, 2025 |  |  | 1,390,273 |  |  | $ | 24.15 |  |  | $ | 41,708 |
Granted |  |  | 633,123 |  |  |  | 18.31 |  |  |  | — |
Vested |  |  | (321,329 | ) |  |  | 27.40 |  |  |  | — |
Forfeited |  |  | (169,188 | ) |  |  | 24.92 |  |  |  | — |
Unvested balance, July 31, 2025 (1) |  |  | 1,532,879 |  |  |  | 20.97 |  |  |  | 21,859 |
(1) Includes 80,724 shares, which are vested, but have been irrevocably deferred at the election of the recipients. The total unrecognized stock-based compensation costs related to time-based RSUs was $24.8 million as of July 31, 2025, which is expected to be recognized over a weighted-average period of 2.8 years. Market-Based Restricted Stock Units Market-based RSUs (“MBRSUs”) vest over a three-year or four-year performance period, subject to continued employment through each anniversary and achievement of market conditions (specified targets related to Skillsoft’s stock price and objective relative total shareholder return). The fair value of MBRSUs is estimated using the Monte Carlo valuation method. Compensation cost for these awards is recognized based on the grant date fair value which is recognized over the vesting period using the accelerated attribution method. The following summarizes the MBRSU activity for the six months ended July 31, 2025:
|  |  |  |  |  | Weighted - |  |  | Aggregate |
|  |  |  |  |  | Average Grant |  |  | Intrinsic Value |
|  | Shares |  |  | Date Fair Value |  |  | (in thousands) |
Unvested balance, January 31, 2025 |  |  | 105,923 |  |  | $ | 62.21 |  |  | $ | 3,178 |
Granted |  |  | 3,333 |  |  |  | 12.94 |  |  |  | — |
Vested |  |  | (29,676 | ) |  |  | 38.00 |  |  |  | — |
Forfeited |  |  | (38,387 | ) |  |  | 75.42 |  |  |  | — |
Unvested balance, July 31, 2025 |  |  | 41,193 |  |  |  | 63.36 |  |  |  | 600 |
The total unrecognized stock-based compensation costs related to MBRSUs was $0.2 million as of July 31, 2025, which is expected to be recognized over a weighted-average period of 0.7 years. Performance-Based Restricted Stock Units Performance-based RSUs (“PBRSUs”) vest over a two-year period, subject to continued employment through each grant date anniversary and achievement of specified corporate goals during a less than one-year performance-period. The expense and shares vested for our PBRSU awards depend on the achievement of specified results; the ultimate expense and number of shares vested can range from 0% to 200% of a target amount granted. The following summarizes the PBRSU activity for the six months ended July 31, 2025:
|  |  |  |  |  | Weighted - |  |  | Aggregate |
|  |  |  |  |  | Average Grant |  |  | Intrinsic Value |
|  | Shares |  |  | Date Fair Value |  |  | (in thousands) |
Unvested balance, January 31, 2025 |  |  | 51,250 |  |  | $ | 17.12 |  |  | $ | 1,538 |
Granted (1) |  |  | 314,139 |  |  |  | 20.08 |  |  |  | — |
Vested |  |  | (7,968 | ) |  |  | 19.54 |  |  |  | — |
Forfeited |  |  | (33,907 | ) |  |  | 19.35 |  |  |  | — |
Unvested balance, July 31, 2025 |  |  | 323,514 |  |  |  | 19.70 |  |  |  | 4,710 |
(1) Reflects the number of shares that would vest based on achieving the “Target” level of performance. The total unrecognized stock-based compensation costs related to PBRSUs was $5.7 million as of July 31, 2025, which is expected to be recognized over a weighted-average period of 2.6 years. Liability-Classified Market-Based Awards In the third quarter of fiscal 2025, we granted market-based awards to Ronald W. Hovsepian, initially intended to be settled in cash upon vesting, unless determined by the Board or a committee thereof to be settled in shares. These awards are eligible to be earned based on the volume-weighted average of our daily trading prices over a 30-consecutive trading day period (“30-day VWAP”) prior to specified dates. During the second quarter of fiscal 2026, the Board of Directors certified the achievement of the first 30-day VWAP hurdle for a total award corresponding to such hurdle of $6 million. Payment of this award is divided into two, equal 50% tranches, each valued at $3.0 million. The first 50% of the award was settled in shares during the second quarter of fiscal 2026. The second 50% of the award will be settled after the required service period. The unvested awards are classified as liabilities and remeasured at fair value using a Monte Carlo simulation at each reporting date and included in the caption “accrued compensation” on the unaudited condensed consolidated balance sheets. Expense is recognized using an accelerated attribution method over the requisite service period. The market-based awards potentially vest over two-year to four-year service periods, subject to continued employment and a specified appreciation of Skillsoft’s share price. The following summarizes the liability-classified market-based performance award balances as of July 31, 2025 (in thousands):
Estimated liability (1) |  | $ | 1,683 |
Estimated unrecognized compensation cost (2) |  |  | 3,231 |
(1) Included in the caption “accrued compensation” on the unaudited condensed consolidated balance sheets. (2) Expected to be recognized over a weighted-average period of 1.8 years. Stock-Based Compensation Expense The following summarizes the classification of stock-based compensation expense in the unaudited condensed consolidated statements of operations (in thousands):
|  | Three Months Ended July 31, |  |  | Six Months Ended July 31, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Cost of revenues |  | $ | 60 |  |  | $ | 132 |  |  | $ | 177 |  |  | $ | 298 |
Content and software development |  |  | 953 |  |  |  | 914 |  |  |  | 1,975 |  |  |  | 2,204 |
Selling and marketing |  |  | 831 |  |  |  | 797 |  |  |  | 1,636 |  |  |  | 2,053 |
General and administrative (1) |  |  | 2,162 |  |  |  | (2,657 | ) |  |  | 4,299 |  |  |  | 1,784 |
Total |  | $ | 4,006 |  |  | $ | (814 | ) |  | $ | 8,087 |  |  | $ | 6,339 |
(1) Stock-based compensation expense during the three and six months ended July 31, 2024 was reduced by $6.0 million due to forfeitures of share-based payments, including unvested equity-based awards associated with our former Chief Executive Officer whose employment with Skillsoft ended on May 9, 2024.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration