Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.22.1
Stockholders' Equity
 3 Months Ended
May 01, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity STOCKHOLDERS’ EQUITY
Common Stock Warrants
The following represents warrant activity during the thirteen weeks ended May 1, 2022 and May 2, 2021:
  Average exercise
price		 Number of warrants Weighted average remaining
 contractual life (in years)
Warrants Outstanding at January 31, 2021
 $ 19.07  293,973  2.57
Warrants issued —  —  0
Expired and canceled —  —  0
Exercised 16.00  (2,375) 0.16
Outstanding at May 2, 2021
 $ 19.11  291,598  2.09
       
Warrants Outstanding at January 30, 2022
 $ 19.20  281,750  1.41
Warrants issued —  —  0
Expired and canceled —  —  0
Exercised —  —  0.00
Outstanding at May 1, 2022
 $ 19.20  281,750  1.16
In the thirteen weeks ended May 2, 2021, a total of 1,125 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 thirteen weeks ended May 2, 2021 resulted in the issuance of 2,106 common shares.
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. The number of shares of common stock reserved for issuance under the 2017 Equity Plan was 2,104,889 at May 1, 2022.
On June 2, 2022, the stockholders of the Company approved of the Second Amended and Restated 2017 Equity Incentive Plan that increased the number of shares of common stock reserved for issuance thereunder by 550,000 shares of common stock.
Stock Options
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 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 May 1, 2022 and May 2, 2021, and the changes during the thirteen weeks ended May 1, 2022 and May 2, 2021 is presented below:
  Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value
Outstanding at January 31, 2021
 495,366  $ 38.10  3.35 — 
Exercised —  —
Expired and canceled —  —
Outstanding at May 2, 2021
 495,366  $ 38.10  3.10 22.87 
Exercisable at the end of the period —  — —  — 
 
  Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value
Outstanding at January 30, 2022
 495,366  $ 38.10  2.35 28.68 
Granted —  — 
Canceled and forfeited —  — 
Outstanding at May 1, 2022
 495,366  $ 38.10  2.10 8.05 
Exercisable at the end of the period —  —  —  —
Restricted Stock Units
A summary of the status of our unvested restricted stock units as of May 1, 2022 and May 2, 2021, and changes during the thirteen weeks then ended, is presented below:
  Number of shares Weighted average grant date fair value
Unvested at January 31, 2021
 655,558  $ 18.86 
Granted 6,000  53.82 
Forfeited (4,638) 16.64 
Vested (4,868) 8.86 
Unvested at May 2, 2021
 652,052  $ 19.27 
  Number of shares Weighted average grant date fair value
Unvested at January 30, 2022
 533,333 $ 28.41 
Granted 256,329 46.11 
Forfeited (20,159) 22.88 
Vested (2,480) 16.57 
Unvested at May 1, 2022
 767,023 $ 34.31 
Equity based compensation expense was approximately $1.2 million and $0.7 million for the thirteen weeks ended May 1, 2022 and May 2, 2021, respectively.
The total unrecognized equity-based compensation cost related to unvested stock option and restricted unit awards was approximately $6.3 million as of May 1, 2022 and will be recognized in operations over a weighted average period of 2.61 years.