Stock-Based Compensation and Stockholders' Rights

9 Months Ended

Oct. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Based Compensation and Stockholders' Rights

Stock-Based Compensation and Stockholders’ Rights

Stock Incentive Plans

Under the 2011 Plan, the Company may grant an aggregate of 2,000,000 shares to its employees and non-employee directors in the form of stock options or awards. Restricted stock or stock units awarded under the 2011 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock unit awards and related compensation expense as the difference between the market value of the awards on the date of grant less the exercise price of the awards granted. There were 87,284 awards granted and 223,174 awards were vested during the second quarter ended July 31, 2016. There were no additional awards granted or vested during the third quarter ended October 31, 2016. There were approximately 746,236 shares available for future issuance under the 2011 Plan as of October 31, 2016.

Accounting for the Plans

Restricted Stock Unit Awards

The following table presents a summary of restricted stock and stock unit awards at October 31, 2016 and 2015:

			Expense for 3 months ended				Expense for 9 months ended				Unrecognized Compensation Cost at
Date of Grants	Units Granted	Terms of Vesting	10/31/2016		10/31/2015		10/31/2016		10/31/2015		10/31/2016
2011 Stock Incentive Plan
06/21/2016	51,284	1 year	$	50,000	$	—	$	83,000	$	—	$	116,000
06/21/2016	36,000	3 years	12,000		—		20,000		—		120,000
06/22/2015	48,000	4 years	8,000		8,000		24,000		13,000		86,000
06/22/2015	27,174	1 year	—		19,000		25,000		33,000		—
06/24/2014	490,000	5 years	60,000		60,000		180,000		185,000		620,000
06/24/2014	28,626	1 year	—		—		—		25,000		—
06/19/2012	520,000	5 years	37,000		37,000		111,000		114,000		86,000
Totals for the period			$	167,000	$	124,000	$	443,000	$	370,000	$	1,028,000