Note 15 - Equity Incentive Plan and Stock Based Compensation

9 Months Ended

Aug. 31, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

15) Equity Incentive Plan and Stock Based Compensation

On February 25, 2020, the Board of Directors of the Company (the “Board”) authorized and approved the Art’s-Way Manufacturing Co., Inc. 2020 Equity Incentive Plan (the “2020 Plan”). The 2020 Plan was approved by the stockholders on April 30, 2020. The 2020 Plan replaced the Art’s-Way Manufacturing Co., Inc. 2011 Equity Incentive Plan (the “2011 Plan”) and prior plans. The 2020 Plan added an additional 500,000 shares to the number of shares reserved for issuance pursuant to equity awards. No further awards will be made under the 2011 Plan or other prior plans. Awards to directors and executive officers under the 2020 Plan are governed by the forms of agreement approved by the Board of Directors. Stock options or other awards granted prior to February 25, 2020 are governed by the applicable prior plan and the forms of agreement adopted thereunder.

The 2020 Plan permits the plan administrator to award nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance awards, and stock appreciation rights to employees (including officers), directors, and consultants. The Board has approved a director compensation policy pursuant to which non-employee directors are automatically granted restricted stock awards of 1,000 shares of fully vested common stock annually or initially upon their election to the Board and another 1,000 shares of fully vested common stock on the last business day of each fiscal quarter.

Shares issued under the 2020 Plan for the three months ended  August 31, 2023 and 2022 are as follows:

	For the Three Months Ended
	August 31, 2023		August 31, 2022
Shares issued to directors (immediate vesting)		5,000		5,000
Shares issued to directors, employees, and consultants (three year vesting)		-		-
Total shares issued		5,000		5,000

	For the Nine Months Ended
	August 31, 2023			August 31, 2022
Shares issued to directors (immediate vesting)		20,000			20,000
Shares issued to directors, employees, and consultants (three year vesting)		82,250			94,500
Unvested shares forfeit upon termination		(13,999	)		(8,333	)
Total shares issued		88,251			106,167