Stock-Based Compensation

Stock Incentive Plans

The Company's has one stock plan, the 2011 Employee Stock Incentive Plan (the “2011 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 awards granted under the 2011 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock 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 55,555 awards granted and 226,804 awards were vested during fiscal 2019. As of January 31, 2019, there were approximately 268,277 awards available for future issuance under the 2011 Plan.

Accounting for the Plans

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



	2019				2018
	Restricted stock units		Weighted- Average Exercise Price		Restricted stock units		Weighted- Average Exercise Price
Outstanding at beginning of year	692,404		$	4.25	491,284		$	2.46
Granted	55,555		4.49		504,404		4.95
Exercised	(226,804	)	4.63		(259,284	)	4.86
Forfeited	(20,000	)	4.01		(44,000	)	4.42
Outstanding at end of year	501,155		4.44		692,404		4.25
Weighted-average fair value of restricted stock units granted during the year	—		4.49		—		4.95

The aggregate fair value of restricted stock awards vested during fiscal years 2019 and 2018 was $1,050,103 and $1,260,120, respectively. The Company recognized compensation expense, net of forfeitures, for the restricted stock awards of $907,000 and $830,000 for fiscal 2019 and 2018, respectively. The Company records forfeitures as incurred.

The weighted-average grant-date fair value of restricted stock awards is the quoted market price of the Company’s common stock on the date of grant, as shown in the table above. The weighted-average grant-date fair value of restricted stock awards granted in fiscal 2019 and 2018 was $4.49 per share and $4.95 per share, respectively.

As of January 31, 2019, there was $1.6 million of total unrecognized compensation expense related to restricted stock awards. That expense is expected to be recognized over a weighted-average period of 2.84 years.

To satisfy employee minimum statutory tax withholding requirements for restricted stock awards that vest, the Company withholds and retires a portion of the vesting common shares, unless an employee elects to pay cash. In fiscal 2019 and 2018, the Company withheld 57,456 and 73,749 common shares, respectively, with a total value of $0.3 million each year. These amounts are presented as a cash outflow from financing activities in the accompanying consolidated statement of cash flows.