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Note 10 - Stock Options and Grants
12 Months Ended
Feb. 28, 2026
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

10. STOCK OPTIONS AND GRANTS

 

There were no outstanding options for the fiscal years beginning March 1, 2026 and 2025.

 

On August 13, 2025, the Board approved stock grants totaling 14,000 shares, which vested immediately under the Company’s 2019 Stock Incentive Plan.  The CEO, COO and CFO and each non-employee director received 2,000 shares: COO and President Mark Matson, CEO Tim Eriksen, CFO Carolyn Campbell, Board Chairman David Pointer, and Directors John Chiste, Dwight Aubrey, and Charles Gillman. The fair value of the stock grant was approximately $225,000 based on then closing price of $16.10 per share on the grant date.

 

Under the terms of the updated employment agreement with Mr. Matson effective as of August 13, 2025, Mr. Matson was given the right to purchase up to 50,000 shares of Company common stock for $14.50 per share within 90 days after the effective date of the new employment agreement.  In addition, during the initial term of the updated employment agreement, which has a three-year term through August 2028, Mr. Matson has the ability to purchase 5,000 shares within 30 days after the end of each quarter, as long as he fulfills the service requirement to work through the last day of each quarter, based on the weighted average share price during the quarter. These shares are issued from treasury shares and are not through the Company's 2019 Stock Incentive Plan. 

 

Mr. Matson elected to purchase the 50,000 shares available based on signing the new employment agreement, for which the expense was recorded in the Company’s second quarter.  In addition, Mr. Matson purchased 5,000 shares for the third quarter at a weighted average share price of $18.01 and 5,000 shares for the fourth quarter at a weighted average share price of $21.22. The Company recorded a fair value expense of approximately $105,000, $13,000 and $18,000 for the second quarter, third quarter and fourth quarter, respectively. Stock compensation was $361,000 in total for the fiscal year ending February 28, 2026 and is recorded under selling, general and administrative expenses.

 

No shares were awarded under the Company's 2019 Stock Incentive Plan for the fiscal year ended February 28, 2025.  There were no forfeited or expired awards during the fiscal years ended February 28, 2026 and 2025. There are no stock options outstanding for the fiscal years ended February 28, 2026 and 2025 under the Company’s 2019 Stock Incentive Plan.