Stock Based Compensation

9 Months Ended

Oct. 28, 2017

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

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

Note 10. Stock Based Compensation

As of October 28, 2017, there was approximately $0.9 million of unrecognized compensation cost related to stock awards that is expected to be recognized as expense over a weighted average period of 2.7 years.

As of October 28, 2017, stock awards authorized for issuance under the Company’s current long term equity incentive plans totaled 5.0 million shares. There are certain authorized stock awards for which the Company no longer grants awards. Of these awards authorized for issuance, 2.6 million shares were granted and are outstanding, 1.5 million shares of which were vested and exercisable. Awards available for future grants at October 28, 2017 were 5.0 million shares.

The table below outlines the assumptions that the Company used to estimate the fair value of stock based awards granted during the thirty-nine weeks ended October 28, 2017:

Dividend yield	0%
Expected stock price volatility	40.0%-40.6%
Risk-free interest rate	1.74%-1.83%
Expected award life (in years)	5.64-5.71
Weighted average fair value per share of awards granted during the period	$0.74

The following table summarizes stock award activity during the thirty-nine weeks ended October 28, 2017:

	Number of Shares Subject To Option			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Other Share Awards (1)			Weighted Average Grant Fair Value
Balance January 28, 2017		2,459,564		$	3.58		7.3		170,927		$	3.87
Granted		620,000			1.84		-		65,000			1.85
Forfeited		(288,750	)		3.07		-		-			-
Cancelled		(164,150	)		5.43		-		(5,000	)		3.53
Exercised		-			-		-		(52,500	)		3.50
Balance October 28, 2017		2,626,664		$	3.11		7.2		178,427		$	3.26
Exercisable October 28, 2017		1,361,164		$	3.32		5.8		63,427		$	4.50

(1) Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.

As of October 28, 2017, the intrinsic value of stock awards outstanding was approximately $1 thousand. All exercisable options had an exercise price below the closing stock price as of October 28, 2017.

In connection with the acquisition of etailz, the Company issued 1,572,552 restricted shares of Company stock to a key etailz employee, with a grant date fair value of $3.56 per share. These shares vest ratably through January 2019. As of October 28, 2017, the Company recognized $2.6 million of compensation cost related to these shares, of which $1.9 million was recorded in fiscal 2017. As of October 28, 2017, there was approximately $3.0 million of unrecognized compensation cost related to these restricted shares that is expected to be recognized as expense over the next 15 months.