Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Stock Based Compensation

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Note 4 - Stock Based Compensation
3 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Note
4.
Stock Based Compensation
 
The Company recorded
$483,287
of compensation expense related to current and past restricted stock grants and the Company’s Employee Stock Purchase Plan (“ESPP”) for the
three
months ended
December 31, 2017
of which
$441,257
is included in selling, general and administrative expense, and
$42,030
is included in cost of sales. The Company recorded
$593,746
of compensation expense related to current and past equity awards for the
three
months ended
December 31, 2016
of which
$539,046
was included in selling, general and administrative expense, and
$54,700
was included in cost of sales. As of
December 31, 2017,
$4,431,952
of total unrecognized compensation expense related to non-vested restricted stock awards is expected to be recognized over a period of approximately
6.8
years.
 
There were
no
stock options granted during the
three
months ended
December 31, 2017
and
December 31, 2016.
The following is a summary of stock option activity during the
three
months ended
December 31, 2017:
 
   
Number of
options
  Weighted average exercise price
Outstanding as of September 30, 2017    
38,950
    $
2.79
 
Granted    
-
     
-
 
Exercised    
(3,500
)    
2.58
 
Cancelled or Forfeited    
-
     
-
 
Outstanding as of December 31, 2017    
35,450
    $
2.81
 
 
The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. As of
December 31, 2017,
the weighted average remaining contractual term for all outstanding and exercisable stock options was
2.5
years and their aggregate intrinsic value was
$334,810.
During the
three
months ended
December 31, 2017,
the Company received proceeds of
$3,249
from the exercise of stock options. During the
three
months ended
December 31, 2016,
exercised stock options totaled
10,000
shares, resulting in
$17
of proceeds to the Company.
 
Restricted Stock
 
The Company’s
2007
Stock Compensation Plan permits its Compensation Committee to grant stock-based awards, including stock options and restricted stock, to key employees and non-employee directors. The Company has made restricted stock grants that vest over
one
to
ten
years.
 
There were
no
restricted stock awards granted during the
three
months ended
December 31, 2017
and
December 31, 2016.
Restricted stock transactions during the
three
months ended
December 31, 2017
are summarized as follows:
 
   
Number of
shares
 
Weighted
average grant
date fair value
Unvested shares as of September 30, 2017    
370,530
    $
15,24
 
Granted    
-
     
-
 
Vested    
(2,000
)    
13.59
 
Forfeited    
(4,376
)    
15.46
 
Unvested as of December 31, 2017    
364,154
    $
15.25
 
 
Employee Stock Purchase Plan
 
Clearfield, Inc.’s ESPP allows participating employees to purchase shares of the Company’s common stock at a discount through payroll deductions. The ESPP is available to all employees subject to certain eligibility requirements. Terms of the ESPP provide that participating employees
may
purchase the Company’s common stock on a voluntary after-tax basis. Employees
may
purchase the Company’s common stock at a price that is
no
less than the lower of
85%
of the fair market value of
one
share of common stock at the beginning or end of each stock purchase period or phase. The ESPP is carried out in
six
month phases, with phases beginning on
January 1
and
July 1
of each calendar year. For the phases that ended on
December 31, 2017
and
December 31, 2016,
employees purchased
14,242
and
11,144
shares at a price of
$10.41
and
$15.21
per share, respectively. After the employee purchase on
December 31, 2017,
103,013
shares of common stock were available for future purchase under the ESPP.