Equity Compensation Plans

9 Months Ended

Jan. 31, 2022

Share-based Payment Arrangement [Abstract]

Equity Compensation Plans

Note 6 – Equity Compensation Plans

Stock Incentive Plans

As of January 31, 2022, we had an aggregate of 9,077,276 shares of our common stock reserved for issuance under our stock incentive plans, of which 3,578,469 shares were subject to outstanding stock options, restricted stock units (“RSUs”) and performance stock units (“PSUs”) and 5,498,807 shares were available for future grants of stock-based awards.

Stock Options

The following summarizes our stock option transaction activity for the nine months ended January 31, 2022:

	Stock Options	Grant Date Weighted Average Exercise Price
	(in thousands)
Outstanding at May 1, 2021	3,130	$6.56
Granted	36	$24.42
Exercised	(403)	$5.95
Canceled or expired	(170)	$7.47
Outstanding at January 31, 2022	2,593	$6.84

Restricted Stock Units

The following summarizes our RSUs transaction activity for the nine months ended January 31, 2022:

	Shares	Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at May 1, 2021	560	$6.52
Granted	334	$25.59
Vested	(209)	$9.23
Forfeited	(49)	$15.17
Outstanding at January 31, 2022	636	$14.98

Performance Stock Units

During the nine months ended January 31, 2022, the Compensation Committee of the Board of Directors granted performance stock units (“PSUs”) to our officers. The PSUs are subject to annual vesting, as to one-third of the PSUs, over our three fiscal years ending April 30, 2022, 2023 and 2024 (each a “Performance Period”) based upon our attainment of certain predetermined financial metrics for each such Performance Period. Each PSU that vests represents the right to receive one share of our common stock. Depending on the actual financial metrics achieved relative to the target financial metrics for such Performance Periods, the number of PSUs issued could range from 0% to 200% of the target amount. The number of granted shares included in the table below is based on a maximum 200% achievement of each financial metric during each Performance Period (the “Maximum Performance Target”). In the event that a financial metric is achieved at a rate below the Maximum Performance Target, or is not achieved, the corresponding portion of the PSUs that do not vest will be forfeited.

The following summarizes our PSUs transaction activity for the nine months ended January 31, 2022:

	Shares	Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at May 1, 2021	–	$–
Granted	380	$25.36
Vested	–	$–
Forfeited	(30)	$26.03
Outstanding at January 31, 2022	350	$25.31

Employee Stock Purchase Plan

The Avid Bioservices, Inc. 2010 Employee Stock Purchase Plan (the “ESPP”) is a stockholder-approved plan under which employees can purchase shares of our common stock, based on a percentage of their compensation, subject to certain limits. The purchase price per share is equal to the lower of 85% of the fair market value of our common stock on the first trading day of the six-month offering period or on the last trading day of the six-month offering period. During the nine months ended January 31, 2022, a total of 44,364 shares of our common stock were purchased under the ESPP at a weighted average purchase price per share of $14.50. As of January 31, 2022, we had 1,031,962 shares of our common stock reserved for issuance under the ESPP.

Stock-Based Compensation

Stock-based compensation expense for the three and nine months ended January 31, 2022 and 2021 was comprised of the following (in thousands):

	Three Months Ended January 31,				Nine Months Ended January 31,
	2022		2021		2022		2021
Cost of revenues	$	694	$	386	$	1,855	$	1,035
Selling, general and administrative		1,417		613		3,497		1,719
Total stock-based compensation	$	2,111	$	999	$	5,352	$	2,754

As of January 31, 2022, the total estimated unrecognized compensation cost related to non-vested stock options and RSUs was $3.6 million and $8.8 million, respectively. These costs are expected to be recognized over weighted average vesting periods of 2.0 and 2.6 years, respectively.

As of January 31, 2022, there was $0.7 million of total estimated unrecognized compensation cost related to unvested PSUs associated with the Performance Period ending April 30, 2022. These costs are expected to be recognized over the weighted average vesting period of 0.3 years.