Stock-Based Compensation

12 Months Ended

Jan. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

Stock-Based Compensation

Stock Incentive Plans

The Company's two stock plans are the 2019 Employee Stock Incentive Plan (the “2019 Plan”) and the 2011 Employee Incentive Stock Plan (the “2011 Plan”).

Under the 2019 Plan, the Company may grant an aggregate of 1,000,000 shares to its employees in the form of restricted stock units and non-employee directors in the form of restricted stock awards. Restricted stock units and awards granted under the 2019 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock units or awards and related compensation expense as the difference between the market value of the units or awards on the date of grant less the exercise price of the units or awards granted. During fiscal year 2023, the Company granted 0 awards to non-employee directors, vested 114,470 shares according to their terms and forfeited 0 shares under the 2019 Plan. As of January 31, 2023, there were approximately 608,435 shares available for future issuance under the 2019 Plan.

Under the 2011 Plan, the Company may grant an aggregate of 2,000,000 shares to its employees in the form of restricted stock units and non-employee directors in the form of restricted stock awards. Restricted stock units and 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 units or awards and related compensation expense as the difference between the market value of the units or awards on the date of grant less the exercise price of the units or awards granted. The 2011 Plan expired in 2021 and no new awards may be made under the 2011 Plan. During fiscal year 2023, the Company vested 119,200 stock awards according to their terms and forfeited 0 stock units under the 2011 Plan.

The following table summarizes the stock-based compensation expense related to restricted stock awards recognized in the Company's statement of operations during fiscal years ended January 31, is as follows:

	2023		2022
	(in thousands)
Cost of goods sold	$	148	$	219
Selling, general and administrative expenses	464		794
Total stock-based compensation expense	$	612	$	1,013

The following table summarizes the Company’s restricted stock unit awards activity, and related information for fiscal years ended January 31,: 

	2023			2022
	Restricted stock units	Weighted- Average Exercise Price		Restricted stock units	Weighted- Average Exercise Price
Outstanding at beginning of year	420,870	$	4.37	611,495	$	4.26
Granted	—	—		68,870	3.63
Exercised	(233,670)	3.82		(259,495)	3.55
Forfeited	—	—		—	—
Outstanding at end of year	187,200	4.40		420,870	4.37
Weighted-average fair value of restricted stock units granted during the year		—			3.63

The aggregate fair value of restricted stock unit awards vested during fiscal years 2023 and 2022 was $892,619 and $921,207, respectively. The Company recognized compensation expense, net of forfeitures, for the restricted stock awards of $612,000 and $1,013,000 for fiscal 2023 and 2022, 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. There were no awards granted in fiscal 2023. The weighted-average grant-date fair value of restricted stock awards granted in fiscal 2022 was $3.63 per share.

As of January 31, 2023, there was $549,000 of total unrecognized compensation expense related to restricted stock awards. That expense is expected to be recognized over a weighted-average period of 1.3 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 2023 and 2022, the Company withheld 55,838 and 50,289 common shares, respectively, with a total value of approximately $213,000 and $176,000, respectively. These amounts are presented as a cash outflow from financing activities in the accompanying consolidated statement of cash flows.