Note 11 - Stock Options and Incentive Plans

12 Months Ended

Apr. 30, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

11. STOCK OPTIONS AND INCENTIVE PLANS:

In November 2016, the shareholders approved and adopted the Butler National Corporation 2016 Equity Incentive Plan. The maximum number of shares of common stock that may be issued under the Plan is 12.5 million.

On April 12, 2019, the Company granted 2.5 million restricted shares to employees. In April 2024, 1,650,000 of those shares became fully vested and non-forfeitable. The remaining 850,000 shares were forfeited. On March 17, 2020, the Company granted 5.0 million restricted shares to employees. These shares have voting rights at date of grant and become fully vested and non-forfeitable on March 16, 2025. The restricted shares were valued at $0.41 per share, for a total of $2.0 million. The deferred compensation related to these grants will be expensed on the financial statements over the five-year vesting period. 

In July 2022, the Company granted a board member 400,000 shares under the plan.  These shares were fully vested and non-forfeitable on the date of the grant.  These shares were valued at $0.88 per share, for a total of $352.  The compensation related to this grant was expensed in the year ended April 30, 2023. 

In October 2023, the Company granted a board member 300,000 shares under the plan.  These shares were fully vested and non-forfeitable on the date of the grant. These shares were valued at $0.74, for a total of $222.  The compensation related to this grant was expensed in the year ended April 30, 2024.

No other equity awards have been made under the plan. During the year ended April 30, 2024, 1,525,000 shares were forfeited. During the year ended April 30, 2023, 875,000 shares were forfeited. At April 30, 2024, total compensation cost related to nonvested awards not recognized was $251, and the weighted average period over which it is expected to be recognized is less than one year.

During the year ended April 30, 2024 the Company expensed $634 and received a benefit of $427 from the forfeiture of shares for a net expense of $207.  For the year ended April 30, 2023, the Company expensed $915 and received a benefit of $206 from the forfeiture of shares for a net expense of $709.

	Number of Shares			Weighted Average Grant Date Fair Value
Total shares issued (2019 - 2024)		8,200,000		$	0.43
Forfeited, in prior periods		(100,000	)	$	0.40
Forfeited during the year ended April 30, 2023		(875,000	)	$	0.40
Forfeited during the year ended April 30, 2024		(1,525,000	)	$	0.40
Total		5,700,000		$	0.45
Vested shares		2,350,000		$	0.56
Non-vested shares		3,350,000		$	0.41