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Employee Benefits
 3 Months Ended
Apr. 30, 2024
Disclosure Text Block Supplement [Abstract]  
Compensation and Employee Benefit Plans [Text Block]

Note 11. 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, 2024, 1,229,116 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 15th, or the next business day if June 15th is not a business day, for all grants of restricted stock.

 

Based on retirement eligibility provisions, a portion of restricted stock grants are expensed at grant date, based on grant date fair value, thus considered vested for accounting purposes. At April 30, 2024 and January 31, 2024, 21,778 shares were unvested for accounting purposes and unrecognized compensation cost related to these nonvested restricted stock awards was approximately $360,000 and $453,000 respectively.

The following tables summarize legally non-vested restricted stock award activity for the periods presented:

 

 Three Months Ended April 30, 2024 
   
   Non-Vested
Shares		   Weighted
Average Grant
Date Fair Value
(000’s)		   Weighted
Average  Remaining
Vesting Term
(in years)		 
                
Non-Vested at January 31, 2024   162,855   $5,369    2 
Granted   -    -      
Forfeited   -    -      
Vested   -    -      
                
Non-Vested at April 30, 2024   162,855   $5,369    2 
     
 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 

 

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 each of the three month periods ended April 30, 2024 and 2023, the Company recognized compensation cost of approximately $265,000 related to the RSUs. Unrecognized compensation cost

related to the RSUs at April 30, 2024 and January 31, 2024, was approximately $0.7 million and $0.9 million, respectively.

 

The Company determined there to be no dilutive impact on earnings per share for the first quarter of fiscal year 2023. For the three month period ended April 30, 2024, we calculated the diluted weighted average shares as follows (amounts in thousands):

 

Weighted average shares – basic   17,546
Dilutive effect of RSUs       118
Weighted average shares – diluted   17,664