Stock Incentive Compensation falls under the scope of FASB ASC Topic 718 "Compensation – Stock Compensation" and affects the stock awards that have been granted and requires the Company to expense share-based payment ("SBP") awards with compensation cost for SBP transactions measured at fair value. For stock options, the Company has elected to use the simplified method of calculating the expected term and historical volatility to compute fair value under the Black-Scholes option-pricing model. The risk-free rate for periods within the contractual life of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant. Forfeitures have been estimated based upon the Company’s historical experience. For restricted stock and restricted stock units, the Company is computing fair value based on a twenty day Exponential Moving Average ("EMA") as of the close of business the Friday preceding the award date.

2016 Equity and Incentive Compensation Plan

On March 9, 2016, stockholders approved and adopted the 2016 Equity and Incentive Compensation Plan ("2016 Plan") which replaced the Amended and Restated 1993 Key Employee Stock Incentive Program. The 2016 Plan authorizes the Compensation Committee of the Board of Directors of the Company to grant to officers and other key employees, including directors, of the Company and its subsidiaries (i) option rights, (ii) appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) cash incentive awards, performance shares and performance units and (vi) other awards. An aggregate of 1,500,000 shares of Common Stock, subject to adjustment upon occurrence of certain events to prevent dilution or expansion of the rights of participants that might otherwise result from the occurrence of such events, was reserved for issuance pursuant to the Incentive Plan. An individual’s award of option and / or appreciation rights is limited to 500,000 shares during any calendar year. Also, an individual's award of restricted shares, restricted share units and performance based awards is limited to 350,000 shares during any calendar year.

The following table summarizes the Company’s Incentive Plan activity for the six months ended April 30, 2017 and 2016:



	Stock Options				Restricted Stock				Restricted Stock Units
Outstanding at:	Options		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Restricted Shares		20 Day EMA (1)	Weighted Average Remaining Contractual Life	Restricted Share Units		20 Day EMA (1)



November 1, 2015	90,666		$9.70	4.10	124,255		$13.77	2.28	—		—
Granted	—		—		309,251		4.28		21,539		$4.17
Options exercised or restricted stock vested	—		—		(21,458	)	16.64		—		—
Forfeited or expired	(1,000	)	12.04		(1,500	)	10.13		—		—
April 30, 2016	89,666		$9.67	3.59	410,548		$6.48	2.25	21,539		$4.17

November 1, 2016	89,666		$9.67	3.09	376,340		$6.40	1.83	21,539		$4.17
Granted	—		—		245,932		7.93		29,253		8.62
Options exercised or restricted stock vested	(8,000	)	9.79		(157,512	)	5.71		(13,574	)	4.17
Forfeited or expired	(23,500	)	13.38		(3,443	)	10.10		—		—
April 30, 2017	58,166		$8.16	3.13	461,317		$7.19	1.83	37,218		$7.53

(1) 20-day EMA effective with commencement of the 2016 Plan on March 9, 2016.

The Company recorded stock compensation expense related to stock options, restricted stock and restricted stock units during the three and six months ended April 30, 2017 and 2016 as follows:



	Three Months Ended April 30,				Six Months Ended April 30,
	2017		2016		2017		2016
Restricted stock	$	395	$	253	$	771	$	442
Restricted stock units	24		9		46		9
Total	$	419	$	262	$	817	$	451

Stock Options

The exercise price of each stock option equals the market price of the Company's common stock on its grant date. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur, and is recognized over the applicable vesting periods. The Company's stock options generally vest over three years, with a maximum term of ten years. Incentive stock options were not granted during the three and six months ended April 30, 2017 and 2016.

Stock options were exercised during the three and six months ended April 30, 2017. Options that have an exercise price greater than the market price are excluded from the intrinsic value computation. At April 30, 2017, the exercise price of the Company's stock option grants were lower than the market value of the Company's stock. At April 30, 2016, the exercise price of some of the Company's stock option grants were higher than the market value of the Company's stock. At April 30, 2017 and April 30, 2016, the options outstanding and exercisable had an intrinsic value of $414 and $64, respectively.

Restricted Stock Awards

The grant date fair value of each restricted stock award equals the fair value of the Company's common stock based on a 20 day exponential moving average as of the close of business on the Friday preceding the award date. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur, and is recognized over the applicable vesting periods. The vesting periods range between one to four years. As of April 30, 2017, there was approximately $2,718 of total unrecognized compensation expense related to non-vested restricted stock that is expected to be recognized over the next three fiscal years.

Restricted Stock Units

The grant date fair value of each restricted stock unit equals the fair value of the Company's common stock based on a 20 day exponential moving average as of the close of business on the Friday preceding the award date. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur, and is recognized over the applicable vesting periods. The vesting periods range between one to three years. As of April 30, 2017, there was approximately $246 of total unrecognized compensation expense related to these restricted stock units that is expected to be recognized over the next three fiscal years.

Earnings per Share

Basic earnings per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of Common Stock outstanding during the period. In addition, the shares of Common Stock issuable pursuant to restricted stock awards, restricted stock units and stock options outstanding under the 2016 Plan are included in the diluted earnings per share calculation to the extent they are dilutive. For the six months ended April 30, 2017 and 2016, approximately 7,000 and 481,000 stock awards, respectively, were excluded from the computation of diluted earnings per share because they were anti-dilutive. The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for net income (loss) per share:



(Shares in thousands)	Three Months Ended April 30,				Six Months Ended April 30,
	2017		2016		2017		2016
Net income (loss) available to common stockholders	$	4,229	$	4,209	$	2,211	$	(918	)
Basic weighted average shares	17,858		17,615		17,788		17,615
Effect of dilutive securities:
Restricted share units and stock options (a)	30		5		21		—
Diluted weighted average shares	17,888		17,620		17,809		17,615
Basic income (loss) per share	$	0.24	$	0.24	$	0.12	$	(0.05	)
Diluted income (loss) per share	$	0.24	$	0.24	$	0.12	$	(0.05	)

(a) Due to a loss for the for the six months ended April 30, 2016, no restricted share awards and units are included because the effect would be anti-dilutive.