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Note 14 - Equity Incentive Plan | 12 Months Ended
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Nov. 30, 2018
Notes to Financial Statements |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
( 14 ) | Equity Incentive Plan
On November 30, 2018, the Company had one equity incentive plan, the 2011 Plan, which is described below. The compensation cost charged against income was $197,243 and $113,039 for the 2018 and 2017 fiscal years, respectively, for all awards granted under the 2011 Plan during such years. The total income tax deductions for share-based compensation arrangements were $157,529 and $68,886 for the 2018 and 2017 fiscal years, respectively. No compensation cost was capitalized as part of inventory or fixed assets. On January 27, 2011, the Board of Directors of the Company authorized and approved the Art’s-Way Manufacturing Co., Inc. 2011 Equity Incentive Plan (the “2011 Plan”), subject to approval by the stockholders on or before January 27, 2012. The 2011 Plan was approved by the stockholders on April 28, 2011. It replaced the Employee Stock Option Plan and the Directors’ Stock Option Plan (collectively, the “Prior Plans”), and no further stock options will be awarded under the Prior Plans. Awards to directors and executive officers under the 2011 Plan are governed by the forms of agreement approved by the Board of Directors. The 2011 Plan permits the plan administrator to award nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance awards, and stock appreciation rights to employees (including officers), directors, and consultants. The Board of Directors has approved a director compensation policy pursuant to which non-employee directors are automatically granted restricted stock awards of 1,000 shares of fully-vested common stock annually upon their election to the Board and another 1,000 shares of fully-vested common stock on the last business day of each fiscal quarter. Additionally, directors can elect to receive their board compensation as restricted stock. During the 2018 fiscal year, restricted stock awards of 51,200 shares were issued to various employees, directors, and consultants, which vest over the next three years, and restricted stock awards of 37,098 shares were issued to directors as part of the compensation policy, which vested immediately upon grant. During the 2018 fiscal year, 22,000 shares of restricted stock were forfeited upon the departure of certain employees. Stock options granted prior to January 27, 2011 are governed by the applicable Prior Plan and the forms of agreement adopted thereunder. The fair value of each option award is estimated on the date of grant using the Black Scholes option-pricing model. Expected volatility is based on historical volatility of the Company’s stock and other factors. The Company uses historical option exercise and termination data to estimate the expected term the options are expected to be outstanding. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is calculated using historical dividend amounts and the stock price at the option issuance date.
|  | 201 8 |  |  | 201 7 |
Expected Volatility |  |  | - |  |  |  | - |
Expected Dividend Yield |  |  | - |  |  |  | - |
Expected Term (in years) |  |  | - |  |  |  | - |
Risk-Free Rate |  |  | - |  |  |  | - |
The following is a summary of activity under the plans as of November 30, 2018 and 2017, and changes during the years then ended: 2018 Option Activity
Options |  | Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term |  |  | Aggregate Intrinsic Value |
Options Outstanding at the Beginning of the Period |  |  | 96,000 |  |  | $ | 7.77 |  |  |  |  |  |  |  |  |
Granted |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |
Exercised |  |  | - |  |  |  | - |  |  |  |  |  |  |  | - |
Options Expired or Forfeited |  |  | (37,000 | ) |  |  | 10.37 |  |  |  |  |  |  |  |  |
Options Outstanding at the End of the Period |  |  | 59,000 |  |  |  | 6.07 |  |  |  | 3.86 |  |  |  | - |
Options Exercisable at the End of the Period |  |  | 59,000 |  |  |  | 6.07 |  |  |  | 3.86 |  |  |  | - |
2017 Option Activity
Options |  | Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term |  |  | Aggregate Intrinsic Value |
Options Outstanding at the Beginning of the Period |  |  | 143,500 |  |  | $ | 8.78 |  |  |  |  |  |  |  |  |
Granted |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |
Exercised |  |  | - |  |  |  | - |  |  |  |  |  |  |  | - |
Options Expired or Forfeited |  |  | (47,500 | ) |  |  | 10.84 |  |  |  |  |  |  |  |  |
Options Outstanding at the End of the Period |  |  | 96,000 |  |  |  | 7.77 |  |  |  | 3.55 |  |  |  | - |
Options Exercisable at the End of the Period |  |  | 96,000 |  |  |  | 7.77 |  |  |  | 3.55 |  |  |  | - |
No options were granted during the 2018 or 2017 fiscal years. As of both November 30, 2018 and November 30, 2017, there were no non-vested options. As of November 30, 2018, there was no unrecognized compensation cost related to non-vested share-based compensation arrangements under the plan related to stock options. No options vested during the 2018 or 2017 fiscal years. The Company received no cash from the exercise of options during the 2018 or 2017 fiscal years. During the 2018 fiscal year, the Company issued 88,298 shares of restricted stock, 26,150 shares of restricted stock became unrestricted and 22,000 shares of restricted stock forfeited. During the 2017 fiscal year, the Company issued 53,700 shares of restricted stock, 22,550 shares of restricted stock became unrestricted and 4,000 shares of restricted stock were forfeited.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + 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 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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