Stock-Based Compensation and Stockholders' Rights

3 Months Ended

Apr. 30, 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

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. During fiscal 2017, the Company granted awards for 87,284 shares of restricted stock, and awards for 223,174 shares of restricted stock vested according to their terms. There were no additional awards granted or vested during the first quarter ended April 30, 2017. There were approximately 764,236 shares available for future issuance under the 2011 Plan as of April 30, 2017.

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 the first quarter ended April 30, 2017. As of April 30, 2017, there were approximately 13,075 shares available for future issuance under the 2007 Plan. On June 19, 2017, the 2007 Plan will terminate and no further awards may be made 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 at April 30, 2017 and 2016:

			Expense for 3 months ended				Unrecognized Compensation Cost at
Date of Grants	Units Granted	Terms of Vesting	4/30/2017		4/30/2016		4/30/2017
2011 Stock Incentive Plan
06/21/2016	51,284	1 year	$	50,000	$	—	$	16,000
06/21/2016	36,000	3 years	12,000		—		96,000
06/22/2015	48,000	4 years	8,000		8,000		70,000
06/22/2015	27,174	1 year	—		19,000		—
06/24/2014	490,000	5 years	60,000		60,000		500,000
06/24/2014	28,626	1 year	—		—		—
06/19/2012	520,000	5 years	37,000		37,000		13,000
Totals for the period			$	167,000	$	124,000	$	695,000