In November 2015, the Company’s stockholders approved the Company’s 2015 Equity Incentive Plan (the “Plan”). During December 2020, the Company’s stockholders approved an amendment to the Plan to increase the number of shares of the Company’s common stock authorized for issuance pursuant to awards granted under the Plan to 3,000,000 shares. The fair value of awards granted under the Plan is expensed on a straight-line basis over the vesting period of the awards. Share-based compensation expense is included in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations.

During the nine months ended March 31, 2021, restricted stock awards of a total of 8,624 shares and 204,014 restricted stock units were granted under the Plan. During the three months ended March 31, 2021, 2,400 restricted stock units were granted under the Plan. During the nine months ended March 31, 2021, restricted stock awards of a total of 1,492 shares were forfeited and returned to the Plan. There were no shares forfeited during the three months ended March 31, 2021. During the nine months ended March 31, 2020, restricted stock awards of a total of 187,169 shares, 28,110 restricted stock units, and 13,550 stock awards were granted under the Plan. During three months ended March 31, 2020, restricted stock awards of a total of 180,669 shares, 16,000 restricted stock units, and 13,550 stock awards were granted under the Plan. Stock awards represent shares of the Company’s common stock issued under the Plan which are held by the recipient upon grant without any future risk of forfeiture. There were no shares forfeited during the nine or three months ended March 31, 2020.

For the nine months ended March 31, 2021 and 2020, non-cash share-based compensation expense related to awards granted under the Plan totaled $1.8 million and $1.7 million, respectively. For the three months ended March 31, 2021 and 2020, non-cash share-based compensation expense related to awards granted under the Plan totaled $640,000 and $809,000, respectively.

As of March 31, 2021, the Company had $15.3 million and $7.4 million of total unrecognized compensation expense related to restricted stock awards and restricted stock units, respectively, granted under the Plan, which is expected to be recognized over the weighted-average period of 17.3 years and 11.4 years, respectively.

The following is a summary of non-vested restricted stock activity as of and for the nine months ended March 31, 2021:

	Restricted Stock Awards				Restricted Stock Units
	Shares		Weighted- Average Grant Date Fair Value		Shares		Weighted- Average Grant Date Fair Value
Non-vested awards or units outstanding at June 30, 2020		987,220	$	19.40		55,610	$	30.31
Granted		8,624		30.61		204,014		31.03
Vested		(49,170)		17.20		(2,531)		26.40
Forfeited		(1,492)		33.53		-		-
Non-vested awards or units outstanding at March 31, 2021		945,182	$	19.59		257,093	$	30.92

Index

EVI Industries, Inc. and Subsidiaries

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021

(Unaudited)

Employee Stock Purchase Plan

The Company’s employee stock purchase plan provides for six-month offering periods ending on December 31 and June 30 of each year. During the nine months ended March 31, 2021, 693 shares of common stock were issued under the Company’s employee stock purchase plan for which the Company received net proceeds of $21,000. During the nine months ended March 31, 2020, 1,022 shares of common stock were issued under the Company’s employee stock purchase plan for which the Company received net proceeds of $26,000. No shares were issued under the Company’s employee stock purchase plan during the three months ended March 31, 2021or 2020.