Stock-Based Compensation and Stockholders' Rights

6 Months Ended

Jul. 31, 2017

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

Stock Based Compensation and Stockholders' Rights

Stock-Based Compensation

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 the quarter ended July 31, 2017, the Company granted awards for 504,404 shares of restricted stock awards and 188,673 shares of restricted stock awards vested according to their terms. There were approximately 259,832 shares available for future issuance under the 2011 Plan as of July 31, 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 second quarter ended July 31, 2017. On June 19, 2017, the 2007 Plan expired 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 July 31, 2017 and 2016:

			Expense for 3 months ended				Expense for 6 months ended				Unrecognized Compensation Cost at
Date of Grants	Units Granted	Terms of Vesting	7/31/2017		7/31/2016		7/31/2017		7/31/2016		7/31/2017
2011 Stock Incentive Plan
06/20/2017	40,404	1 year	$	33,000	$	—	$	33,000	$	—	$	166,000
06/20/2017	464,000	5 years	77,000		—		77,000		—		2,216,000
06/21/2016	51,284	1 year	16,000		33,000		66,000		33,000		—
06/21/2016	36,000	3 years	12,000		8,000		24,000		8,000		86,000
06/22/2015	48,000	4 years	8,000		8,000		16,000		16,000		60,000
06/22/2015	27,174	1 year	—		6,000		—		25,000		—
06/24/2014	490,000	5 years	60,000		60,000		120,000		120,000		440,000
06/19/2012	520,000	5 years	12,000		37,000		49,000		74,000		—
Totals for the period			$	218,000	$	152,000	$	385,000	$	276,000	$	2,968,000