|12 Months Ended|
Nov. 30, 2018
|Disclosure of Compensation Related Costs, Share-based Payments [Abstract]|
|STOCK-BASED COMPENSATION|| STOCK-BASED COMPENSATION
On June 15, 2005, the shareholders approved an amended and Restated Stock Option Plan amending the 2003 Stock Option Plan (the “2005 Plan”). The 2005 Plan authorizes the issuance of up to one million shares of common stock (subject to customary adjustments set forth in the plan) pursuant to equity awards, which may take the form of incentive stock options, nonqualified stock options restricted shares, stock appreciation rights and/or performance shares. The 2005 Plan expired in April, 2015, but awards made under the 2005 Plan prior to its expiration will remain in effect until such awards have been satisfied or terminated in accordance with the terms and provisions of the 2005 Plan. On August 13, 2015, the shareholders approved the 2015 CCA Industries, Inc. Incentive Plan (the "2015 Plan"). The 2015 Plan authorized the issuance of up to 700,000 shares of common stock (subject to customary adjustments set forth in the plan) pursuant to equity awards, which may take the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, performance shares and cash awards. On June 7, 2017, the shareholders approved the 2015 CCA Industries, Inc. Incentive Plan as Amended. The sole purpose of the amendment was to increase the shares available for issuance under the 2015 Plan from 700,000 to 1,400,000.
On January 1, 2006, the Company adopted ASC Topic 718, "Stock Compensation" which requires an entity to recognize the grant-date fair value of stock options and other equity-based compensation issued to employees in the financial statements.
The fair value of the stock option grants in fiscal years 2018 and 2017 were estimated on the date of the grant using a Black-Scholes valuation model and the assumptions in the following table:
On June 20, 2018, the Company granted incentive stock options for an aggregate of 270,000 shares to 14 employees at $2.85 per share, which was the closing price of the Company's stock on that day. The options vest in equal 20% increments beginning one year after the date of grant, and for each of the four subsequent anniversaries of such date. The options expire on June 19, 2028. The Company had estimated the fair value of the options granted to be $398,169 as of the grant date. Accordingly, the Company recorded a charge against earnings in the amount of $33,181 for the fiscal year ended November 30, 2018.
On June 20, 2018, the Company granted non-qualifed stock options for 75,000 shares each to Brian Haveson and Brent Funston, directors of the Company, at $2.85 per share, which was the closing price of the Company's stock on that day. The options vest twelve months after the date of grant. The options expire on June 19, 2023. The Company had estimated the fair value of the options granted to be $153,945 as of the grant date. Accordingly, the Company recorded a charge against earnings in the amount of $64,144 for the fiscal year ended November 30, 2018.
NOTE 14 - STOCK-BASED COMPENSATION (Continued)
A summary of stock option activity for the Company is as follows:
Stock-based compensation expense recognized for the years ended November 30, 2018 and 2017 was $290,727 and $167,121, respectively.
A summary of the future amortization expense of stock options outstanding as of November 30, 2018 is as follows:
The following table summarizes information about currently outstanding and vested stock options at November 30, 2018:
The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef