Stock-Based Compensation (Tables)

9 Months Ended

Oct. 28, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Restricted Stock Activity

The following tables summarize the share activity and stock option activity for the first nine months of fiscal 2023:

	RSUs (1)			Deferred shares (2)		Performance Share Units (3)			Fully-Vested  Shares (4)			Total number of shares			Weighted- average grant-date fair value
Shares
Outstanding non-vested shares at beginning of year		520,008			435,568		240,000			—			1,195,576		$	2.51
Shares granted		547,294			—		573,000			19,772			1,140,066		$	4.50
Shares vested and/or issued		(535,786	)		—		—			(19,772	)		(555,558	)	$	4.07
Shares expired		—			—		(240,000	)		—			(240,000	)	$	1.07
Shares forfeited		(50,612	)		—		—			—			(50,612	)	$	7.35
Outstanding non-vested shares at end of quarter		480,904			435,568		573,000			—			1,489,472		$	3.52

(1)During the first nine months of fiscal 2023, the Company granted RSUs for the achievement of performance metrics under the 2020-2022 LTIP that were subject to additional vesting through August 31, 2023 and time-based RSUs under its LTIPs. See Note 5, Long-Term Incentive Plans. As a result of net share settlements, of the 535,786 RSUs that vested, only 383,174 shares of common stock were issued.

(2)The outstanding deferred shares will be issued upon the director’s separation from service.

(3)On August 11, 2023, the Company granted 573,000 performance share units ("PSUs") in connection with the extension of Mr. Kanter's employment agreement. The award consists of nine tranches, with the first tranche vesting if and when the 30-day volume-weighted closing price of the Company's common stock is equal to or greater than $6.50 per share. Each subsequent tranche will vest upon achievement of the 30-day volume-weighted closing price of the Company's common stock in $0.25 installments with the ninth tranche vesting when such price is equal to or greater than $8.50 per share. The PSUs are subject to a one-year minimum vesting period, and any unvested PSUs will expire on August 11, 2026. The $2.4 million fair value is being expensed over the respective derived service periods of each tranche which range from 12 to 13 months. The respective fair value and derived service periods assigned to the PSUs were determined using a Monte Carlo model based on: a weighted historical volatility of 57.8%, a term of 3 years, stock price on the date of grant of $4.98 per share, a risk-free rate of 4.6% and a cost of equity of 11.0%.

(4)Represented compensation, with a fair value of $101,242, to certain directors, who are required to receive shares, in lieu of cash, in order to satisfy their minimum equity ownership under the Non-Employee Director Compensation Plan. Voluntary shares received, in lieu of cash, are reported below under Non-Employee Director Compensation Plan.

Stock Option Activity

	Number of shares			Weighted- average exercise price per option		Weighted- average remaining contractual term		Aggregate intrinsic value
Stock Options
Outstanding options at beginning of year		3,556,434		$	0.83	7.4 years		$	23,238,665
Options granted		1,317		$	5.91		—		—
Options exercised		(210,225	)	$	1.41				729,318
Options expired		(18,115	)	$	5.04				—
Options forfeited		(12,892	)	$	2.42		—		49,037
Outstanding options at end of quarter		3,316,519		$	0.76	6.7 years		$	10,973,281
Options exercisable at end of quarter		2,062,614		$	0.82	6.5 years		$	6,729,437