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Employee Benefits

3 Months Ended

Apr. 30, 2023

Disclosure Text Block Supplement [Abstract]

Compensation and Employee Benefit Plans [Text Block]

Note 10. Employee Benefits

The Company maintains the REX 2015 Incentive Plan, approved by its shareholders, which reserves a total of 1,650,000 shares of common stock for issuance pursuant to its terms. The plan provides for the granting of shares of stock, including options to purchase shares of common stock, stock appreciation rights tied to the value of common stock, restricted stock, and restricted stock unit awards to eligible employees,

non-employee directors and consultants. Until 2022, the Company had only granted restricted stock awards. In May 2022, the Company issued restricted stock units to certain officers of the Company which vest based on the Company’s Total Shareholder Return (TSR) compared to the TSRs of companies that comprise the Russell 2000 Index over a three-year performance period. The Company measures share-based compensation grants at fair value on the grant date, adjusted for estimated forfeitures. The Company records non-cash compensation expense related to liability and equity awards in its consolidated financial statements over the requisite service period on a straight-line basis. At April 30, 2023, 1,342,842 shares remain available for issuance under the Plan, excluding the impact of the 67,500 restricted stock units that may vest between zero and 135,000 shares of stock depending on certain performance metrics being achieved.

Restricted Stock Awards

As a component of their compensation, restricted stock has been granted to directors and certain employees at the closing market price of REX common stock on the grant date. In addition, one quarter of executives’ incentive compensation is payable by an award of restricted stock-based on the then closing market price of REX common stock on the grant date. The Company’s board of directors has determined that the grant date will be June 15^th, or the next business day if June 15^th is not a business day, for all grants of restricted stock.

At April 30, 2023 and January 31, 2023, unrecognized compensation cost related to nonvested restricted stock awards was approximately $291,000 and $450,000 respectively. The following tables summarize non-vested restricted stock award activity for the periods presented:

			Three Months Ended April 30, 2023

			Non-Vested Shares				Weighted Average Grant Date Fair Value (000’s)				Weighted Average Remaining Vesting Term (in years)

Non-Vested at January 31, 2023			81,264			$	2,320				2
Granted			-				-
Forfeited			-				-
Vested			-				-
Non-Vested at April 30, 2023			81,264			$	2,320				2

			Three Months Ended April 30, 2022

			Non-Vested Shares				Weighted Average Grant Date Fair Value (000’s)				Weighted Average Remaining Vesting Term (in years)

Non-Vested at January 31, 2022			30,167			$	773				1
Granted			-				-
Forfeited			-				-
Vested			-				-
Non-Vested at April 30, 2022			30,167			$	773				1

An additional 75,100 shares were authorized by the Board of Directors to be granted on June 15, 2023 to certain officers and employees of the Company.

Restricted Stock Units (RSUs)

In May 2022, the Company issued a total of 67,500 RSUs to certain officers. The number of RSUs eligible to vest will be determined based on how the Company’s TSR compares to the TSR of companies that comprise the Russell 2000 Index during the performance period ending December 31, 2024. The number of RSUs eligible to vest ranges from zero percent to two hundred percent, depending on actual performance during the performance period.

For the three month period ended April 30, 2023, the Company recognized compensation cost of approximately $265,000 related to the RSUs. Unrecognized compensation cost related to the RSUs at April 30, 2023 and January 31, 2023, was approximately $1.8 million and 2.0 million, respectively.