BUTLER BOX AND STAKE INC

inputs from our Compensation Committee, the Executive Bonus Plan for fiscal year 2025 was determined, settled and paid out in the first quarter of fiscal year 2026 in the form of fully vested restricted stock units and cash. During the first quarter of fiscal year 2026, our Compensation Committee also adopted and approved the performance criteria and targets for the Executive Bonus Plan for fiscal year 2026, which is expected to be paid out in the form of fully vested restricted stock units and cash in the first quarter of fiscal year 2027. During the years ended January 31, 2026 and 2025, we recognized stock-based compensation expense related to Executive Bonus Plans in the amount of $ 15.9 million and $ 13.4 million, respectively. The unrecognized compensation expense related to the ung

e and each of the operating expense categories set forth below. Operating Expenses Our operating expenses consist of research and development, sales and marketing, and general and administrative expenses. Personnel costs are the most significant component of each category of operating expenses. Operating expenses also include allocated overhead costs for facilities, information technology costs and employee benefit costs. Research and Development. Research and development expense consists primarily of employee compensation and related expenses, as well as allocated overhead. Our research and development efforts are focused on scaling our platform, building an ecosystem of best-of-breed applications and platforms, infrastructure, adding enterprise grade features, functionality and enhanceme

may be issued under the Plan is 12.5 million. On April 12, 2019, the Company granted 2.5 million restricted shares to employees. In April 2024, 1.65 million of those shares became fully vested and non-forfeitable. The remaining 850 thousand shares were forfeited. On March 17, 2020, the Company granted 5.0 million restricted shares to employees. These shares have voting rights at date of grant and become fully vested on March 16, 2025. The restricted shares were valued at $ 0.41 per share, for a total of $ 2.0 million. The deferred compensation related to these grants was expensed on the financial statements over the five-year vesting period. In January 2025, the Company granted executive officers 86,704 shares as employee compensation. The first installment of these shares vested immediate

n fiscal 2025. We continue focusing on our margin expansion initiatives, including efficiencies in our implementation of improved operational processes and controlling general and administrative expenses. We have made a deliberate shift toward higher-margin product lines and improved operational alignment. We expanded our fabrication capabilities through the new facility in Newton, Kansas, and continued growth at our KC Machine location. At the same time, we are optimizing our workforce by balancing production between Newton and New Century to address labor availability and demand. As a result, the fiscal 2026 operating income was $28.5 million, an increase of 69% from $16.8 million in fiscal 2025. This represents an operating margin of 29% in fiscal 2026, compared to 20% in fiscal 2025 (o