Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity

v3.22.1
Stockholders' Equity
 12 Months Ended
Jan. 30, 2022
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITY
COMMON STOCK WARRANTS
In fiscal 2022, a total of 5,625 warrants were exercised on a cashless basis, whereby the holders received fewer shares of common stock in lieu of a cash payment to the Company. Warrants exercised in fiscal 2022 resulted in the issuance of 10,956 common shares. There were 98 warrants that expired as of January 30, 2022.
In fiscal 2021, 738,897 warrants exercised were cashless, whereby the holders received fewer shares of common stock in lieu of a cash payment to the Company. Warrants exercised in fiscal 2021 resulted in the issuance of 439,447 common shares. Warrants exercised in fiscal 2020 resulted in the issuance of 27,246 common shares.
The following represents warrant activity during fiscal 2022 and 2021:
Average exercise price Number of warrants Weighted average remaining contractual life (in years)
Outstanding at February 3, 2019 16.83 1,067,475  2.93
Warrants issued 16.00 18,166  2.40
Expired and canceled — —  —
Exercised 16.00 (46,521) 2.15
Outstanding at February 2, 2020 16.83 1,039,120  1.93
Warrants issued —  —  — 
Expired and canceled —  0 — 
Exercised 16.00 (745,147) 0.41
Outstanding at January 31, 2021 19.07 293,973  2.57
Warrants issued —  —  — 
Expired and canceled 9.83  (98) — 
Exercised 16.00  (12,125) 0.09
Outstanding at January 30, 2022 $ 19.20  281,750  1.41
EQUITY INCENTIVE PLANS
The Company adopted the 2017 Equity Plan which provides for awards in the form of options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance units, cash-based awards and other stock-based awards. All awards shall be granted within 10 years from the effective date of the 2017 Equity Plan.
In June 2019, the Company granted 495,366 nonstatutory Stock options to certain officers of the Company with an option price of $38.10 per share. 100% of the stock options are subject to vesting on the third anniversary of the date of grant if the officers are still employed by the Company and the average closing price of the Company’s common stock for the prior 40 consecutive trading days has been at least $75 by the third anniversary of the grant. Both the employment and the market condition must be satisfied no later than June 5, 2024 or the options will terminate. These options were valued using a Monte Carlo simulation model to account for the path dependent market conditions that stipulate when and whether or not the options shall vest. The 495,366 stock options were modified to extend the term of the options through June 5, 2024. This resulted in additional compensation of approximately $0.9 million, of which, $0.3 million was recorded upon modification and the remaining expense was recognized over the remaining expected term. The market condition was met on June 5, 2021, which was the date on which the average closing price of the Company’s common stock had been at least $75 for 40 consecutive trading days. The options will vest and become exercisable on June 5, 2022 as long as the officers are still employed on that date. As a result of the market condition being met, the Company accelerated the amortization and recognized additional stock-based compensation expense during fiscal year 2022 of approximately $0.9 million.
In June 2020, the stockholders of the Company approved an amendment to the 2017 Equity Plan that increased the number of shares of common stock reserved for issuance under the 2017 Equity Plan by 690,000 shares of common stock. The number of shares of common stock reserved for issuance under the 2017 Equity Plan increased from 1,414,889 to 2,104,889 shares of common stock.
A summary of the status of our stock options as of January 30, 2022, January 31, 2021, and February 2, 2020 and the changes during fiscal years then ended, is presented below:
For the years ended January 30, 2022, January 31, 2021, and February 2, 2020
Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value
Outstanding at February 3, 2019 —  $ —  0 — 
Granted 495,366  38.10 
Canceled and forfeited —  $ — 
Outstanding at February 2, 2020 495,366  $ 38.10  2.34 — 
Granted —  — 
Canceled and forfeited —  — 
Outstanding at January 31, 2021 495,366  $ 38.10  3.35 — 
Granted —  $ — 
Canceled and forfeited —  — 
Outstanding at January 30, 2022 495,366  $ 38.10  2.35 $ 28.68 
Exercisable at the end of the period —  —  —  — 
A summary of the status of our unvested restricted stock units as of January 30, 2022, January 31, 2021, February 2, 2020, and and changes during fiscal years then ended, is presented below:
Number of shares Weighted average grant date fair value
Unvested at February 3, 2019 377,286  $ 11.16 
Granted 130,898  23.63 
Forfeited (20,470) 16.21 
Vested (304,661) 12.75 
Unvested at February 2, 2020 183,053  $ 21.34 
Granted 627,940  16.94 
Forfeited (5,701) 11.86 
Vested (149,734) 16.24 
Unvested at January 31, 2021 655,558  18.86 
Granted 94,985  78.53 
Forfeited (42,516) 22.67 
Vested (174,694) 19.57 
Unvested at January 30, 2022 533,333  $ 28.41 
Equity-based compensation expense was approximately $5.9 million, $4.7 million, and $4.9 million for fiscal 2022, 2021, and 2020 respectively. In fiscal 2020, all the unvested restricted stock units for certain senior executives of the Company that were granted prior to the accelerated vesting trigger, vested according to the accelerated vesting trigger in their restricted stock unit agreements. The triggering event was the market capitalization of the Company post-IPO, exceeding $300 million for 60 consecutive trading days and the expiration of the lock-up period. This accelerated vesting resulted in equity based compensation in the amount of $2.9 million. In December 2019, the exchange and modification of options that were held at SAC LLC resulted in approximately $313,000 of equity-based compensation expense.
The total unrecognized equity based compensation cost related to unvested stock option and restricted unit awards was approximately $4.8 million as of January 30, 2022 and will be recognized in operations over a weighted average period of 2.11 years.