Annual report pursuant to Section 13 and 15(d)

Equity Plan

v3.20.2
Equity Plan
12 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Equity Plan

19. Equity Plan

Equity Incentive Plan

During 2015, the Company’s board of directors and stockholders approved the Company’s 2015 Equity Incentive Plan (the “Plan”). The Plan authorizes the issuance of up to 1,500,000 shares of the Company’s common stock pursuant to awards granted under the Plan. The fair value of awards granted under the Plan is expensed on straight- 

EVI Industries, Inc. and Subsidiaries

 

Notes to Consolidated Financial Statements

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. Non-cash share-based compensation expense under the Plan totaled $2.3 million and $1.7 million for fiscal 2020 and fiscal 2019, respectively.

During fiscal 2020, restricted stock awards, restricted stock units and stock awards of a total of 187,169 shares, 28,110 shares and 13,550 shares, respectively, were granted under the Plan. A portion of the restricted stock awards are scheduled to vest ratably over four years and the remainder is scheduled to vest in 10 to 21 years, subject, in the certain of certain restricted shares, to accelerated vesting upon the achievement of certain specified performance goals. The total grant date fair value, determined by using the stock price on the date of grant, of such restricted stock awards was $4.2 million. A portion of the restricted stock units are scheduled to vest ratably over four years and the remainder is scheduled to vest in 4 to 37 years. The total grant date fair value of such restricted stock units was $689,000. Stock awards relate to 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. The total grant date fair value of such stock awards was $300,000.

During fiscal 2019, restricted stock awards and restricted stock units of a total of 6,845 shares and 27,500 shares, respectively, were granted under the Plan. The restricted stock awards provide for ratable vesting in equal annual installments over four years from the date of grant. The total grant date fair value of such restricted stock awards was $250,000. The restricted stock units are scheduled to vest in 5 to 31 years from the date of grant. The total grant date fair value of such restricted stock units was $997,000. No stock awards were granted under the Plan during fiscal 2019.

During fiscal 2020, 55,803 shares of restricted stock vested and 17,200 shares of common stock with an aggregate fair market value of $457,000 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of such restricted stock. During fiscal 2020, the Company also granted stock awards (not subject to forfeiture) of 13,550 shares of the Company’s common stock. 5,262 of such shares of common stock, which had an aggregate fair market value of $116,000 as of the grant date, were withheld in lieu of cash to satisfy tax withholding obligations in connection with the grant of the stock awards. During fiscal 2019, 54,093 shares of restricted stock vested and 20,248 shares of common stock with an aggregate fair market value of $728,000 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of such restricted stock. As of June 30, 2020, the Company had $16.5 million and $1.5 million of total unrecognized compensation expense, net of estimated forfeitures, related to non-vested restricted stock awards and restricted stock units, respectively, which is expected to be recognized over the weighted-average period of 17.2 years and 16.7 years, respectively.

EVI Industries, Inc. and Subsidiaries

 

Notes to Consolidated Financial Statements

 

The following is a summary of non-vested restricted stock activity as of, and for the fiscal year ended, June 30, 2020:

 

Restricted Stock Awards

Restricted Stock Units

Shares

Weighted-

Average Grant

Date Fair Value

Shares

Weighted-

Average Grant

Date Fair Value

Non-vested restricted stock outstanding at June 30, 2019

855,854

$

18.62

27,500

$

36.24

Granted

187,169

22.57

28,110

24.51

Vested

(55,803

)

18.01

-

-

Forfeited

-

-

-

-

Non-vested restricted stock outstanding at June 30, 2020

987,220

$

19.40

55,610

$

30.31

Employee Stock Purchase Plan

During 2017, the Company’s board of directors and stockholders approved the Company’s 2017 Employee Stock Purchase Plan, which, subject to the terms of the plan, allows eligible employees with an opportunity to purchase shares of the Company’s common stock at a 5% discount. The employee stock purchase plan provides for six-month offering periods ending on December 31 and June 30 of each year. During fiscal 2020, 2,216 shares of common stock were purchased under the Company’s employee stock purchase plan for which the Company received net proceeds of $50,000. During fiscal 2019, 1,341 shares of common stock were purchased under the Company’s employee stock purchase plan for which the Company received net proceeds of $45,000.