Note 7 - Stock-based Compensation

9 Months Ended

Oct. 31, 2018

Notes to Financial Statements

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

Note

7

- Stock-based compensation

At

October 31, 2018

, the Company had

one

incentive stock plan under which new equity incentive awards

may

be granted:

• 2017 Omnibus Stock Incentive Plan dated June 13, 2017, as amended, which stockholders approved in June 2017 ( "2017 Plan")

The Company has prior incentive plans under which previously granted awards remain outstanding, but under which

no

new awards

may

be granted. At

October 31, 2018

, the Company had reserved a total of

921,314

 shares for grants and issuances under these incentive stock plans, which includes a reserve for issuances pursuant to unvested or unexercised prior awards, and shares for new grants or issuances pursuant to the

2017

Plan.

While the

2017

Plan provides for the grant of deferred shares, non-qualified stock options, incentive stock options, restricted shares, restricted stock units, and performance-based restricted stock units intended to qualify under section

422

of the Internal Revenue Code, to date the Company has issued only restricted shares and restricted stock units under the

2017

Plan and currently intends to continue this practice. The

2017

Plan authorizes awards to officers, employees, consultants, and directors.

The Company has stock-based compensation awards that can be granted to eligible employees, officers or directors. The following is the stock-based compensation expense:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2018		2017		2018		2017
Stock-based compensation expense	$	5	$	21	$	28	$	80
Restricted stock-based compensation expense		283		294		971		938
Total stock-based compensation expense	$	288	$	315	$	999	$	1,018

Stock Options

The following tables summarize the Company's stock option activity:

Option activity	No. of Shares Underlying Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 31, 2018		358			9.44		4.0	$	482
Exercised		(37	)		6.88				86
Expired or forfeited		(54	)		17.08
Outstanding end of period		267			8.42		3.6		408
Exercisable end of period		257		$	8.49		3.5	$	384

Unvested option activity	No. of Shares Underlying Options			Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Outstanding at January 31, 2018		31		$	8.24	$	50
Vested		(14	)
Expired or forfeited		(6	)
Outstanding end of period		11		$	7.00	$	23

As of

October 31, 2018

, there was less than $

0.1

 million of total unrecognized compensation expense related to unvested stock options. The expense is expected to be recognized over a weighted average period of

1.4

 years.

Restricted stock

The following table summarizes the Company's restricted stock activity for the year:

Restricted stock activity	Restricted Shares			Weighted Average Grant Price Per Share		Aggregate Intrinsic Value
Outstanding (unvested) at January 31, 2018		360		$	9.05	$	3,254
Granted		148			9.76
Vested and issued		(89	)
Forfeited		(69	)		7.27
Outstanding (unvested) end of period		350			9.14	$	3,199

As of

October 31, 2018

, there was $

1.3

 million of unrecognized compensation expense related to unvested restricted stock granted under the plans. The expense is expected to be recognized over a weighted average period of

2.4

 years.

As a result of certain events that occurred during

second

quarter of fiscal

2018,

 including a settlement of stock-based award previously granted to a retiring member of the Company's Board of Directors, the Company changed its method of accounting for deferred stock compensation arrangements granted to the Company's directors from liability accounting treatment to equity accounting treatment and, as such, reclassified

$0.7

million from a liability to additional paid in capital.