Annual report pursuant to Section 13 and 15(d)

Stock-based compensation

v3.3.1.900
Stock-based compensation
12 Months Ended
Nov. 30, 2015
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 “Plan”). The 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 plan expired in April, 2015. On August 13, 2015, the shareholders approved the 2015 CCA Industries, Inc. Incentive Plan(the "2015 Plan"). The 2015 Plan authorizes 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 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 below were estimated on the date of the grant using a Black-Scholes valuation model and the assumptions in the following table:

Assumptions:
Option Grant Date
Risk-free Interest Rate
Dividend Yield
Stock Volatility
Option Term (years)
February 1, 2014
1.49%
—%
32.16%
5
October 2, 2014
1.70%
—%
36.63%
10
October 16, 2014
1.70%
—%
37.51%
10
January 5, 2015
1.57%
—%
37.74%
10
April 9, 2015
1.40%
—%
37.79%
10

On January 5, 2015, the Company granted incentive stock options for 175,000 shares to eight employees of the Company at 3.48 per share. The closing price of the Company's stock on the date of the grant was 3.48 per share. The options vest in equal 20% increments commencing one year after the date of grant, and for each of the four subsequent anniversaries of such date. The options expire on January 5, 2025. The Company had estimated the fair value of the options granted to be $297,833 as of the grant date. Subsequent to the grant date, 130,000 incentive stock option shares were forfeited, which had a fair market value of $221,247 at the time of the grant. The balance of 45,000 shares outstanding from the January 5, 2015 grant with a fair market value of $76,586 is being amortized as an expense over a five year period. Accordingly, the Company recorded a charge against earnings in the amount of $14,041 for the fiscal year end November 30, 2015.
On April 9, 2015, the Company granted incentive stock options for 10,000 shares to an employee of the Company, at $3.18 per share. The closing price of the Company's stock on the date of grant was $3.18 per share. The options vest in equal 20% increments commencing one year after the date of grant, and for each of the four subsequent anniversaries of such date. The options expire on April 8, 2025. The Company has estimated the fair value of the options granted to be $15,418 as of the grant date, which amount shall be amortized as an expense over a five year period. Accordingly, the Company recorded a charge against earnings in the amount of $2,056 for the fiscal year end November 30, 2015.
There were 88,000 incentive stock option shares forfeited in fiscal 2015 that were granted in fiscal 2014. The Company had estimated the fair market value of the forfeited shares to be $108,479 as of the grant date.






A summary of stock option activity for the Company is as follows:
 
Number of Options
Weighted-Average Exercise Price
Weighted-Average Remaining Term (years)
Aggregate Intrinsic Value
Outstanding at November 30, 2013
Granted
137,000
$3.40
 
Exercised
Cancelled or Forfeited
Outstanding at November 30, 2014
137,000
3.40
5.70
Granted
185,000
3.46
Exercised
Cancelled or Forfeited
218,000
3.45
Outstanding at November 30, 2015
104,000
3.42
7.91


Deferred compensation expense recognized for the years ended November 30, 2015, 2014 and 2013 was $67,398, $29,035 and $0, respectively.
A summary of the amortization expense of stock options outstanding as of November 30, 2015 is as follows:
For the years ended November 30,
2016
2017
2018
2019
2020
$18,401
$18,401
$18,401
$18,401
$2,304

The following table summarizes information about currently outstanding and vested stock options at November 30, 2015:
 
 
Weighted-Average Remaining Term (years)
 
 
Number of Options Granted
Number of Option Shares Vested
Exercise Price
$3.40
20,000
3.17
20,000
$3.42
27,000
8.84
27,000
$3.36
2,000
8.88
2,000
$3.48
45,000
9.10
$3.18
10,000
9.36
Total
104,000
 
49,000