Company: NEOG
Filing Date: 2025-07-30
Form Type: 10-K
Source: 0000950170-25-100064
Chunk: 58

Company: NEOGEN CORP
Filing Date: 2025-07-30
Form: 10-K
Item: Item 6
Chunk 58
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        The weighted average exercise price of shares subject to options that were exercisable at May 31, 2024 and 2023 was $26.11 and $31.54, respectively. Remaining compensation cost to be expensed in future periods for non-vested options was $13,488 at May 31, 2025, with a weighted average expense recognition period of 1.8 years.  

         Year Ended May 31,

         2025

         2024

         2023

         Aggregate intrinsic value of options outstanding
          
         $
         113

         $
         55

         $
         6,154

         Aggregate intrinsic value of options exercisable

         —

         $
         5

         $
         42

         Aggregate intrinsic value of options exercised
          
         $
         46

         $
         37

         $
         73

       The fair value of stock options granted was estimated using the following weighted-average assumptions:  

         Year Ended May 31,

         2025

         2024

         2023

         Risk-free interest rate

         3.7
         %

         4.7
         %

         3.3
         %

         Expected dividend yield

         0.0
         %

         0.0
         %

         0.0
         %

         Expected stock volatility

         38.1
         %

         37.3
         %

         34.0
         %

         Expected option life
          
         3.4 years

         4.5 years

         4.5 years

80

The risk-free interest rate for periods within the expected life of options granted is based on the U.S. Treasury yield curve in effect at the time of grant. Expected stock price volatility is based on historical volatility of the Company’s stock. The expected option life, representing the period of time that options granted are expected to be outstanding, is based on historical option exercise and employee termination data. We include recent historical experience in estimating our forfeitures. As employees terminate, grant tranches expire or as forfeitures are known, estimated expense is adjusted to actual. For options granted in fiscal years 2025, 2024 and 2023, the Company recorded charges in general and administrative expense based on the fair value of stock options using the straight line method over the vesting period of three to five years.