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 no additional awards granted or vested during the third quarter ended October 31, 2017. There were approximately 259,832 shares available for future issuance under the 2011 Plan as of October 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 third quarter ended October 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 October 31, 2017 and 2016:



			Expense for 3 months ended					Expense for 9 months ended				Unrecognized Compensation Cost at
Date of Grants	Units Granted	Terms of Vesting	10/31/2017			10/31/2016		10/31/2017		10/31/2016		10/31/2017
2011 Stock Incentive Plan
06/20/2017	40,404	1 year	$	50,000		$	—	$	83,000	$	—	$	116,000
06/20/2017	464,000	5 years	107,000			—		183,000		—		2,011,000
06/21/2016	51,284	1 year	—			50,000		66,000		83,000		—
06/21/2016	36,000	3 years	(8,000		)	12,000		16,000		20,000		—
06/22/2015	48,000	4 years	8,000			8,000		25,000		24,000		52,000
06/22/2015	27,174	1 year	—			—		—		25,000		—
06/24/2014	490,000	5 years	60,000			60,000		180,000		180,000		380,000
06/19/2012	520,000	5 years	—			37,000		49,000		111,000		—
Totals for the period			$	217,000		$	167,000	$	602,000	$	443,000	$	2,559,000