Share-Based Compensation

9 Months Ended

Oct. 31, 2020

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Note 13 – Share-Based Compensation

We have one equity incentive plan from which we are authorized to grant equity awards, the AstroNova, Inc. 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan provides for, among other things, the issuance of awards, including incentive stock options,

non-qualified

stock options, stock appreciation rights, time-based restricted stock units (“RSUs”), or performance-based restricted stock units (“PSUs”) and restricted stock awards (RSAs). The 2018 Plan authorizes the issuance of up to 950,000 shares of common stock, plus an additional number of shares equal to the number of shares subject to awards granted under previous equity incentive plans that are forfeited, cancelled, satisfied without the issuance of stock, otherwise terminated (other than by exercise), or, for shares of stock issued pursuant to any unvested award, that are reacquired by us at not more than the grantee’s purchase price (other than by exercise). Under the 2018 Plan, all awards to employees generally have a minimum vesting period of one year. Options granted under the 2018 Plan must be issued at an exercise price of not less than the fair market value of our common stock on the date of grant and expire after ten years. Under the 2018 Plan, 301,438 unvested shares of restricted stock and options to purchase an aggregate of 135,500 shares were outstanding as of October 31, 2020.

In addition to the 2018 Plan, we previously granted equity awards under our 2015 Equity Incentive Plan (the “2015 Plan”) and our 2007 Equity Incentive Plan (the “2007 Plan”). No new awards may be issued under either the 2007 or 2015 plans, but outstanding awards will continue to be governed by those plans. As of October 31, 2020, options to purchase an aggregate of 338,458 shares were outstanding under the 2007 Plan and 14,583 unvested shares of restricted stock and options to purchase an aggregate of 148,625 shares were outstanding under the 2015 Plan.

We also have a

Non-Employee

Director Annual Compensation Program (the “Program”), under which each of our

non-employee

directors automatically receives a grant of restricted stock on the date of their

re-election

to our board of directors. The number of whole shares granted is equal to the number calculated by dividing the stock component of the director compensation amount determined by the compensation committee for that year by the fair market value of our stock on that day. The value of the restricted stock award for fiscal 2021 is $60,000. Shares of restricted stock granted under the Program become vested on the first anniversary of the date of grant, conditioned upon the recipient’s continued service on our board of directors through that date.

Share-based compensation expense was recognized as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
Stock Options	$	126	$	148	$	390	$	487
Restricted Stock Awards and Restricted Stock Units		462		371		1,284		1,074
Employee Stock Purchase Plan		3		6		13		15

Total	$	591	$	525	$	1,687	$	1,576

Stock Options

There were no stock options granted during the nine months ended October 31, 2020 and November 2, 2019.

Aggregated information regarding stock option activity for the nine months ended October 31, 2020 is summarized below:


	Number of Options		Weighted Average Exercise Price
Outstanding at January 31, 2020		679,044	$	14.46
Granted		—		—
Exercised		(800)		7.36
Forfeited		(54,261)		12.89
Canceled		(1,400)		7.36

Outstanding at October 31, 2020		622,583	$	14.62

Set forth below is a summary of options outstanding at October 31, 2020:


Outstanding							Exercisable
Range of Exercise prices	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Number of Shares		Weighted- Average Exercise Price		Weighted Average Remaining Contractual Life
$5.00-10.00		41,444	$	7.97		1.6		41,444	$	7.97		1.6
$10.01-15.00		359,414	$	13.63		5.1		314,241	$	13.65		4.9
$15.01-20.00		221,725	$	17.48		7.1		167,367	$	17.22		7.0

		622,583	$	14.62		5.6		523,052	$	14.34		5.3

As of October 31, 2020, there was approximately $0.4 million of unrecognized compensation expense related to stock options which is expected to be recognized over a weighted average period of approximately 0.9 years.

Restricted Stock Units (RSUs) and Restricted Stock Awards (RSAs)

Aggregated information regarding RSU and RSA activity for the nine months ended October 31, 2020 is summarized below:


	RSAs & RSUs		Weighted Average Grant Date Fair Value
Outstanding at January 31, 2020		134,634	$	16.79
Granted		245,131		7.61
Vested		(59,747)		17.58
Forfeited		(3,997)		16.40

Outstanding at October 31, 2020		316,021	$	9.53

As of October 31, 2020, there was approximately $2.0 million of unrecognized compensation expense related to RSUs and RSAs which is expected to be recognized over a weighted average period of 0.9 years.

Employee Stock Purchase Plan

We have an Employee Stock Purchase Plan allowing eligible employees to purchase shares of common stock at a 15% discount from fair value on the first or last day of an offering period, whichever is less. A total of 247,500 shares were reserved for issuance under this plan. During the

nine

months ended October 31, 2020 and November 2, 2019, there were 12,098 and 5,441 shares, respectively, purchased under this plan. As of October 31, 2020, 12,877 shares remain available for purchase under our Employee Stock Purchase Plan.