Stock-Based Compensation and Stockholders' Rights

12 Months Ended

Jan. 31, 2017

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

Stock Based Compensation and Stockholders' Rights

Stock-Based Compensation and Stockholders’ Rights

Stock Incentive Plans

The Company's two stock plans are the 2011 Employee Stock Incentive Plan (the “2011 Plan”) and the 2007 Employee Incentive Stock Plan (the “2007 Plan”). Under the 2011 Plan, the Company may grant an aggregate of 1,000,000 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 fiscal 2017. As of January 31, 2017, there were approximately 764,236 shares available for future issuance under the 2011 Plan.

Under the 2007 Plan, the Company may grant an aggregate of 1,000,000 shares to its employees and non-employee directors in the form of stock options or awards. Restricted stock or stock units awarded under the 2007 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. The Company granted no awards during fiscal 2017. As of January 31, 2017, there were approximately 13,075 shares available for future issuance under the 2007 Plan.

Accounting for the Plans

Restricted Stock Unit Awards

The following table presents a summary of restricted stock and stock unit awards:

			Expense for 12 months ended						Unrecognized Compensation Cost at
Date of Grants	Units Granted	Terms of Vesting	1/31/2017		1/31/2016		1/31/2015		1/31/2017
2011 Stock Incentive Plan
06/21/2016	51,284	1 year	$	133,000	$	—	$	—	$	66,000
06/21/2016	36,000	3 years	32,000		—		—		108,000
06/22/2015	48,000	4 years	32,000		22,000		—		78,000
06/22/2015	27,174	1 year	25,000		50,000		—		—
06/24/2014	490,000	5 years	240,000		246,000		171,000		560,000
06/24/2014	28,626	1 year	—		25,000		49,000		—
12/03/2013	10,000	1 year	—		—		13,000		—
06/25/2013	71,430	1 year	—		—		50,000		—
06/19/2012	520,000	5 years	147,000		150,000		157,000		50,000
2007 Stock Incentive Plan
06/16/2009	382,500	5 years	—		—		62,000		—
Totals for the period			$	609,000	$	493,000	$	502,000	$	862,000

A summary of the Company’s restricted stock unit awards activity, and related information for the following years ended January 31, is as follows:

	2017				2016				2015
	Restricted stock units		Weighted- average fair value of restricted stock units		Restricted stock units		Weighted- average fair value of restricted stock units		Restricted stock units		Weighted- average fair value of restricted stock units
Outstanding at beginning of year	657,174		$	2.34	812,626		$	2.24	544,430		$	1.87
Granted	87,284		3.89		75,174		2.76		518,626		2.61
Vested	(223,174	)	4.04		(212,626	)	2.79		(232,430	)	2.38
Forfeited	(30,000	)	2.61		(18,000	)	2.74		(18,000	)	2.61
Outstanding at end of year	491,284		2.46		657,174		2.34		812,626		2.24
Weighted-average fair value of restricted stock units granted during the year			3.89				2.76				2.61

The aggregate fair value of restricted stock unit awards vested during fiscal years 2017, 2016 and 2015 was $902,000, $593,000 and $553,000, respectively.