The Company has stock-based compensation plans under which awards of non-qualified stock options, incentive stock options and restricted stock have been or may be granted to employees, directors and certain advisors of the Company. The stock-based compensation plan being utilized at July 31, 2025 is the 2024 Equity Incentive Plan. The 2024 Equity Incentive Plan was approved by the Company’s shareholders and became effective on August 27, 2024. This plan governs all new equity-based awards granted on or after its effective date. The 2024 Equity Incentive Plan includes a reserve of 500,000 shares authorized for issuance of awards under the plan. At July 31, 2025, a total of 336,772 shares

remained available for future awards under the 2024 Equity Incentive Plan. The Company recorded total stock-based compensation expense for all plans of approximately $1.2 million ($905 thousand after tax effects) and $1.3 million ($1.1 million after tax effects) for the three months ended July 31, 2025 and 2024, respectively. Tax benefits were recognized for these costs at the Company’s overall effective tax rate, excluding discrete income tax benefits related to excess benefits on share-based compensation.

The Company has options outstanding under the Amended and Restated Stock Option Plan. The shareholders of the Company approved the Amended and Restated Stock Option Plan (the “Restated Option Plan”) on August 5, 2015, which extended the term of the Stock Option Plan to June 10, 2025 and increased the number of shares of common stock reserved for issuance under the plan by an additional 300,000 shares to 1,800,000 shares. On August 29, 2018, August 26, 2020, and August 30, 2022, the shareholders of the Company approved amendments to the Restated Option Plan increasing the number of shares of common stock reserved for issuance under the plan by an additional 200,000, 200,000 and 185,000 shares, respectively. At July 31, 2025, a total of 427,448 shares of common stock are reserved for issuance of outstanding stock options under the Restated Option Plan. Options outstanding under the Restated Option Plan expire in the calendar years 2026 through 2034. As of July 31, 2025, there were 230,486 unvested options under the Restated Option Plan. No further awards may be granted under the Restated Option Plan.

The 2024 Equity Incentive Plan, which replaced the Restated Option Plan, provides for the grant of options to purchase shares of the Company’s common stock to employees, directors and certain advisors of the Company at a price not less than the fair market value of the stock on the date of grant and for periods not to exceed 10 years. As of July 31, 2025, there were 63,818 unvested options under the 2024 Equity Incentive Plan.


	Restated Option Plan	2024 Equity Incentive Plan
Minimum exercise price as a percentage of fair market value at date of grant	100%	100%
Last expiration date for outstanding options	May 9, 2034	June 5, 2035
Shares available for grant at July 31, 2025	0	336,772

The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of the Company’s common stock. The Company has not historically issued any dividends and does not expect to do so in the foreseeable future.

There were 61,318 options granted during the three months ended July 31, 2025 under the 2024 Equity Incentive Plan. There were 22,281 options granted during July 31, 2024 under the Restated Option Plan. The grant-date fair value of options granted during the three months ended July 31, 2025 and 2024 was $875,000 and $350,000, respectively. The options were granted at fair market value on the date of grant. Generally, options vest after three to five years.

Stock option compensation expense was $288,000 ($223,000 after tax effects) and $200,800 ($164,000 after tax effects) for the three months ended July 31, 2025 and 2024, respectively. As of July 31, 2025, the Company had approximately $1.6 million of total unrecognized compensation cost related to unvested options that are expected to vest. These unvested outstanding options have a weighted-average remaining vesting period of 1.3 years.

As of July 31, 2025, there were 427,448 vested and exercisable stock options outstanding with an aggregate intrinsic value of $459,000, a weighted average remaining contractual life of 4.6 years, and a weighted average exercise price of $81.23.

On August 5, 2015, the shareholders of the Company approved the Amended and Restated Stock Incentive Plan (the “Restated Incentive Plan”), which extended the term of the Company’s Stock Incentive Plan to June 10, 2025. On August 29, 2018, the shareholders of the Company approved an amendment to the Restated Stock Incentive Plan that increased the number of shares of common stock that may be issued under the Restated Incentive Plan by 100,000 shares to 450,000. The 2024 Equity Incentive Plan replaced the Restated Incentive Plan. As of August 27, 2024, no further awards may be granted under the Restated Incentive Plan. For shares issued under the Restated Incentive Plan and the 2024 Equity Incentive Plan, the associated compensation expense is generally recognized equally over the vesting periods established at the award date and is subject to the employee’s continued employment by the Company.

There were 29,363 restricted shares granted during the three months ended July 31, 2025 and 16,364 restricted shares granted during the three months ended July 31, 2024. There were 263,779 unvested restricted shares outstanding as of July 31, 2025 with a weighted average grant date fair value of $57.61.

The Company recorded compensation cost of approximately $869,000 ($673,000 after tax effects) and $1.1 million ($839,000 after tax effects) related to the Restated Incentive Plan and 2024 Equity Incentive Plan during the three months ended July 31, 2025 and 2024, respectively. As of July 31, 2025, the Company had approximately $4.9 million of total unrecognized compensation cost related to unvested awards granted under the Restated Incentive Plan and 2024 Equity Incentive Plan, which the Company expects to recognize over a weighted-average remaining period of 1.9 years.