|9 Months Ended|
Oct. 30, 2022
|Stockholders' Equity Note [Abstract]|
|STOCKHOLDERS’ EQUITY||STOCKHOLDERS’ EQUITY
Common Stock Warrants
The following represents warrant activity during the thirty-nine weeks ended October 30, 2022 and October 31, 2021:
In the thirty-nine weeks ended October 31, 2021, 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 the thirty-nine weeks ended October 31, 2021, resulted in the issuance of 10,956 common shares. There were 98 warrants that expired in the thirty-nine weeks ended October 31, 2021.
Equity Incentive Plan
The Company adopted the Amended and Restated 2017 Equity Incentive Plan (the “2017 Equity Plan”) which provides for awards in the form of stock 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. On June 2, 2022, the stockholders of the Company approved of the Second Amended and Restated 2017 Equity Incentive Plan (the "Amended 2017 Equity Plan") that increased the number of shares of common stock reserved for issuance thereunder by 550,000 shares of common stock. The number of shares of common stock reserved for issuance under the Amended 2017 Equity Plan was 2,654,889 at October 30, 2022.
In June 2019, the Company granted 495,366 non-statutory 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 condition 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 in fiscal 2022 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 with the remaining expense to be 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 vested and became exercisable on June 5, 2022 as the officers were still employed on that date.
A summary of the status of our stock options as of October 30, 2022 and October 31, 2021, and the changes during the thirty-nine weeks ended October 30, 2022 and October 31, 2021 is presented below:
Restricted Stock Units
A summary of the status of our unvested restricted stock units as of October 30, 2022 and October 31, 2021, and changes during the thirty-nine weeks then ended, is presented below:
Equity based compensation expense was approximately $0.7 million and $1.1 million and $2.9 million and $2.9 million for the thirteen and thirty-nine weeks ended October 30, 2022 and October 31, 2021, respectively.
The total unrecognized equity-based compensation cost related to unvested restricted unit awards was approximately $4.9 million as of October 30, 2022 and will be recognized in operations over a weighted average period of 2.12 years.
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef