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Stock Option Plan And Other Share-Based Compensation
 6 Months Ended
Apr. 30, 2012
Stock Option Plan And Other Share-Based Compensation [Abstract]  
Stock Option Plan And Other Share-Based Compensation

(2) Stock Option Plan and Other Share-Based Compensation

As of April 30, 2012, there were approximately 123,000 and 8,500 remaining shares available for grant under the Optical Cable Corporation 2011 Stock Incentive Plan and the Optical Cable Corporation 2005 Stock Incentive Plan, respectively.

Share-based compensation expense for employees and Non-employee Directors recognized in the condensed consolidated statements of income for the three months and six months ended April 30, 2012 was $429,630 and $683,474, respectively, and for the three months and six months ended April 30, 2011 was $292,244 and $472,705, respectively, and was entirely related to expense recognized in connection with the vesting of restricted stock awards.

Stock Option Awards

Prior to July 2002, employees and outside contractors were issued options to purchase common stock. Additionally, during 2002, non-employee members of the Company's Board of Directors were granted options to purchase shares of the Company's common stock. The exercise price equaled the market price of the Company's common stock on the date of grant.

Stock option activity during the six months ended April 30, 2012 is as follows:

          Weighted-
          average
      Weighted- remaining
  Number of average contractual
  options exercise price term (in years)
Outstanding and exercisable at October 31, 2011 131,388   $ 7.11 0.34
Forfeited (126,388 )   7.20 —
Outstanding and exercisable at April 30, 2012 5,000   $ 4.64 0.11

 

Restricted Stock Awards

The Company has granted, and anticipates granting from time to time, restricted stock awards subject to approval by the Compensation Committee of the Board of Directors.

During the three months ended April 30, 2012, restricted stock awards under the 2011 and 2005 Plans totaling 345,953 and 53,780, respectively, were approved by the Compensation Committee of the Board of Directors of the Company. Of the restricted stock awards granted, 199,876 are service-based shares which vest quarterly over approximately four years with the first vesting date occurring on April 30, 2012; and 199,857 shares are operational performance-based shares vesting over approximately five years beginning on January 31, 2013 based on the achievement of certain quantitative operational performance goals.

During the three months ended April 30, 2012, restricted stock awards under the Non-employee Directors Stock Plan, as amended, totaling 44,424 shares were approved by the Board of Directors of the Company. The shares are part of the Non-employee Director's annual compensation for service on the Board of Directors, and the shares vest immediately upon grant. The Company recorded compensation expense totaling $153,263 during the three months and six months ended April 30, 2012 related to the Non-employee Directors grant.

In total, restricted stock award activity during the six months ended April 30, 2012 consisted of restricted share grants totaling 444,157 shares, and 38,280 restricted shares withheld for taxes in connection with the vesting of restricted shares.

As of April 30, 2012, the maximum amount of compensation cost related to unvested equity-based compensation awards in the form of service-based and operational performance-based shares that the Company will have to recognize over a 3.6 year weighted-average period is approximately $2.4 million.