Company: KEQU
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0000055529-25-000013
Chunk: 33

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 over their vesting period.

15

In August 2023, the stockholders approved the 2023 Omnibus Incentive Plan ("2023 Plan"), which enables the Company to grant equity-based awards, with potential recipients including directors, consultants, and employees. This plan replaces the 2017 Omnibus Incentive Plan ("2017 Plan"). No new awards will be granted under the prior plans. All outstanding options granted under the prior plans remain subject to, and will be settled upon exercise under, the prior plans. At the date of approval of the 2023 Plan, there were 64,633 shares available for issuance under the 2017 Plan. These shares and any outstanding awards that subsequently cease to be subject to such awards are available under the 2023 Plan. The 2023 Plan also increased the total number of shares reserved for issuance under the Company's equity compensation plans by 310,000, for a total of 374,633 shares initially reserved for issuance under the 2023 Plan. At January 31, 2025, there were 383,572 shares available for future issuance under the 2023 Plan.In June 2024, the Company granted 47,940 RSUs under the 2023 Plan. These RSUs include both a service and a performance component, vesting over a three-year period. The recognized expense is based upon the vesting period for service criteria and estimated attainment of the performance criteria at the end of the three-year period, based on the ratio of cumulative days of service to total days over the three-year period. The Company recorded stock-based compensation expense of $380,000 and $1,071,000 during the three and nine months ended January 31, 2025 with the remaining estimated stock-based compensation expense of $2,334,000 to be recorded over the remaining vesting periods. The Company recorded stock-based compensation expense of $241,000 and $655,000 during the three and nine months ended January 31, 2024.

N. Income Taxes

Income tax benefit of $108,000 and income tax expense of $1,000,000 were recorded for the three and nine months ended January 31, 2025, respectively. Income tax expense of $982,000 and $3,894,000 were recorded for the three and nine months ended January 31, 2024, respectively. The effective tax rate was (8.5)% and 13.1% for the three and nine months