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STOCK OPTIONS | 12 Months Ended
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Sep. 28, 2024
Share-Based Payment Arrangement [Abstract] |
STOCK OPTIONS | STOCK OPTIONS Prior to fiscal 2022, the Company had options outstanding under two stock option plans: the 2010 Stock Option Plan (the “2010 Plan”) and the 2016 Stock Option Plan (the “2016 Plan”). Options granted under both plans are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted and expire ten years after the date of grant. On March 15, 2022, the shareholders of the Company approved the Ark Restaurants Corp. 2022 Stock Option Plan (the "2022 Plan"). Effective with this approval, the Company terminated the 2016 Plan along with the 63,750 authorized but unissued options under the 2016 Plan. Such termination did not affect any of the options previously issued and outstanding under the 2016 Plan, which remain outstanding in accordance with their terms. Under the 2022 Plan, 500,000 options were authorized for future grant and are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted. The options expire ten years after the date of grant. On January 18, 2024, options to purchase 107,500 shares of common stock at an exercise price of $14.80 per share were granted to officers and directors of the Company under the 2022 Stock Option Plan (the "2024 Grant"). Such options are exercisable as to 25% of the shares commencing on the first anniversary of the date of grant and as to an additional 25% on each yearly anniversary thereafter. The grant date fair value of these stock options was $4.39 per share and totaled approximately $472,000. During the year ended September 28, 2023, no options to purchase shares of common stock were issued by the Company. The Company generally issues new shares upon the exercise of employee stock options. The fair value of each of the Company’s stock options is estimated on the date of grant using a Black-Scholes option-pricing model that uses assumptions that relate to the expected volatility of the Company’s common stock, the expected dividend yield of the Company’s stock, the expected life of the options and the risk-free interest rate. The assumptions used for the 2024 Grant include a risk-free interest rate of 3.2%, volatility of 49.7%, a dividend yield of 4.2% and an expected life of 10 years. The following table summarizes stock option activity under all plans:
| 2024 |  | 2023
| Shares |  | Weighted Average Exercise Price |  | Weighted Average Contractual Term |  | Aggregate Intrinsic Value |  | Shares |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value
Outstanding, beginning of year | 471,250 |  |  | $ | 19.57 |  |  | 5.2 years |  |  |  | 544,125 |  |  | $ | 19.63 |  |  |
Options: |  |  |  |  |  |  |  |  |  |  |  |  |
Granted | 107,500 |  |  | $ | 14.80 |  |  |  |  |  |  | — |  |  |  |  |
Exercised | — |  |  |  |  |  |  |  |  | (3,750) |  |  | $ | 10.65 |  |  |
Canceled or expired | (163,000) |  |  | $ | 20.70 |  |  |  |  |  |  | (69,125) |  |  | $ | 20.50 |  |  |
Outstanding and expected to vest, end of year | 415,750 |  |  | $ | 17.89 |  |  | 6.3 years |  | $ | 83,000 |  |  | 471,250 |  |  | $ | 19.57 |  |  | $ | 413,000 |
Exercisable, end of year | 276,875 |  |  | $ | 19.92 |  |  | 5.4 years |  | $ | 41,000 |  |  | 310,125 |  |  | $ | 20.21 |  |  | $ | 207,000 |
Shares available for future grant | 370,000 |  |  |  |  |  |  |  |  | 477,500 |  |  |  |  |
Compensation cost charged to operations for the years ended September 28, 2024 and September 30, 2023 for stock-based compensation programs was approximately $237,000 and $314,000, respectively, and total stock-based compensation activity for the year ended September 28, 2024 was ($919,000) which includes reversal of stock-based compensation expense relating to forfeitures in the amount of $1,156,000. Compensation cost recognized is classified as a general and administrative expense in the consolidated statements of operations. As of September 28, 2024, there was approximately $532,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of 2.5 years. The following table summarizes information about stock options outstanding as of September 28, 2024:
|  |  |  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining contractual life (in years) |  | Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining contractual life (in years)
$10.65 |  | 80,250 |  |  | $ | 10.65 |  |  | 6.2 |  | 40,125 |  |  | $ | 10.65 |  |  | 6.2
$14.80 |  | 87,500 |  |  | $ | 14.80 |  |  | 9.3 |  | — |  |  | $ | 14.80 |  |  | 9.3
$17.80 |  | 22,500 |  |  | $ | 17.80 |  |  | 7.9 |  | 11,250 |  |  | $ | 17.80 |  |  | 7.9
$21.90 |  | 177,500 |  |  | $ | 21.90 |  |  | 5.4 |  | 177,500 |  |  | $ | 21.90 |  |  | 5.4
$19.61 | - | $22.30 |  | 48,000 |  |  | $ | 20.86 |  |  | 4.3 |  | 48,000 |  |  | $ | 20.86 |  |  | 4.3
|  |  |  | 415,750 |  |  | $ | 17.89 |  |  | 6.3 |  | 276,875 |  |  | $ | 19.92 |  |  | 5.4
The Company also maintains a Section 162(m) Cash Bonus Plan. Under the Section 162(m) Cash Bonus Plan, compensation paid in excess of $1,000,000 to any employee who is the chief executive officer, or one of the three highest paid executive officers on the last day of that tax year (other than the chief executive officer or the chief financial officer) is not tax deductible.

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