Stock Incentive Compensation

Stock Incentive Compensation requires us to expense share-based payment awards granted. Compensation cost for share-based payments transactions are measured at fair value. For stock options, we 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. New restricted stock and restricted stock units grants are valued at the closing market price of our common stock on the date of grant. We do not estimate a forfeiture rate at the time of grant. Instead, we recognize share-based compensation expense when actual forfeitures occur.

2016 Equity and Incentive Compensation Plan

Long-Term / Annual Incentives

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 our 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 three months ended January 31, 2019 and 2018:



	Stock Options			Restricted Stock				Restricted Stock Units
Outstanding at:	Options	Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Restricted Shares		Grant Fair Value	Weighted Average Remaining Contractual Life	Restricted Share Units		Grant Fair Value	Weighted Average Remaining Contractual Life



November 1, 2017	58	$8.16	2.53	441		$7.07	1.60	36		$7.69	1.82
Granted	—	—		220		8.20		12		8.20
Options exercised or restricted stock vested	—	—		(88	)	8.48		(7	)	7.06
Forfeited or expired	—	—		(1	)	7.06		—		—
January 31, 2018	58	$8.16	2.27	572		$7.29	2.22	41		$7.94	1.89

November 1, 2018	33	$9.42	1.84	478		$7.45	1.87	26		$8.17	1.37
Granted	—	—		294		7.06		22		6.96
Options exercised or restricted stock vested	—	—		(123	)	7.66		(6	)	7.68
Forfeited or expired	—	—		(32	)	7.24		—
January 31, 2019	33	$9.42	1.59	617		$7.23	2.36	42		$7.60	2.31

We recorded stock compensation expense related to stock options, restricted stock and restricted stock units during the three months ended January 31, 2019 and 2018 as follows:



	Three Months Ended January 31,
	2019		2018
Restricted stock	$	509	$	480
Restricted stock units	36		36
Total	$	545	$	516

Stock Options - The exercise price of each stock option equals the market price of our common stock on the 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. Our stock options generally vest over three years, with a maximum term of ten years. Incentive stock options were not granted during the three months ended January 31, 2019 and 2018.

During the three months ended January 31, 2019 and 2018, stock options were not exercised. Options that have an exercise price greater than the market price are excluded from the intrinsic value computation. At January 31, 2019 and October 31, 2018, the options outstanding and exercisable had an intrinsic value of $7 and $42, respectively.

Restricted Stock Awards - New restricted stock grants are valued at the closing market price of our common stock on the 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 vesting periods range between one to three years. As of January 31, 2019, there was approximately $3,704 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 - New restricted stock unit grants are valued at the closing market price of our common stock on the 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 vesting periods range between one to three years. As of January 31, 2019, there was approximately $245 of total unrecognized compensation expense related to these restricted stock units that is expected to be recognized over the applicable vesting periods.