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STOCKHOLDERS' EQUITY | 12 Months Ended
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Jan. 31, 2020
Equity [Abstract] |
STOCKHOLDERS' EQUITY | The 2017 Plan On June 21, 2017, the stockholders of the Company approved the Lakeland Industries, Inc. 2017 Equity Incentive Plan (the “2017 Plan”) at the Annual Meeting of Stockholders. The executive officers and all other employees and directors of the Company, including its subsidiaries, are eligible to participate in the 2017 Plan. The 2017 Plan is administered by the Compensation Committee of the Board of Directors (the “Committee”), except that with respect to all non-employee directors, the Committee shall be deemed to include the full Board. The 2017 Plan provides for the grant of equity-based compensation in the form of stock options, restricted stock, restricted stock units, performance shares, performance units, or stock appreciation rights (“SARS”). The Committee has the authority to determine the type of award, as well as the amount, terms and conditions of each award, under the 2017 Plan, subject to the limitations and other provisions of the 2017 Plan. An aggregate of 360,000 shares of the Company’s common stock are authorized for issuance under the 2017 Plan, subject to adjustment as provided in the 2017 Plan for stock splits, dividends, distributions, recapitalizations and other similar transactions or events. If any shares subject to an award are forfeited, expire, lapse or otherwise terminate without issuance of such shares, such shares shall, to the extent of such forfeiture, expiration, lapse or termination, again be available for issuance under the 2017 Plan. The following tables summarize the unvested shares granted on June 7, 2018 and December 4, 2019 which have been made under the 2017 Plan. Granted June 7, 2018
|  | Number of shares awarded total |
|  | Minimum |  |  | Target |  |  | Maximum |  |  | Cap |
Employees |  |  | 17,834 |  |  |  | 26,753 |  |  |  | 35,670 |  |  |  | 42,805 |
Non-Employee Directors |  |  | 7,168 |  |  |  | 10,752 |  |  |  | 14,336 |  |  |  | 17,204 |
Total |  |  | 25,002 |  |  |  | 37,505 |  |  |  | 50,006 |  |  |  | 60,009 |
|  | Value at grant date (numbers below are rounded to the nearest 100) |
|  | Minimum |  |  | Target |  |  | Maximum |  |  | Cap |
Employees |  | $ | 248,800 |  |  | $ | 373,200 |  |  | $ | 497,600 |  |  | $ | 597,120 |
Non-Employee Directors |  |  | 100,000 |  |  |  | 150,000 |  |  |  | 200,000 |  |  |  | 240,000 |
Total |  | $ | 348,800 |  |  | $ | 523,200 |  |  | $ | 697,600 |  |  | $ | 837,120 |
Granted December 4, 2019
|  | Number of shares awarded total |
|  | Minimum |  |  | Target |  |  | Maximum |
Employees |  |  | 48,186 |  |  |  | 74,133 |  |  |  | 88,960 |
Non-Employee Directors |  |  | 16,360 |  |  |  | 25,168 |  |  |  | 30,204 |
Total |  |  | 64,546 |  |  |  | 99,301 |  |  |  | 119,164 |
|  | Value at grant date (numbers below are rounded to the nearest $100) |
|  | Minimum |  |  | Target |  |  | Maximum |
Employees |  | $ | 497,800 |  |  | $ | 765,800 |  |  | $ | 918,960 |
Non-Employee Directors |  |  | 169,000 |  |  |  | 260,000 |  |  |  | 312,000 |
Total |  | $ | 666,800 |  |  | $ | 1,025,800 |  |  | $ | 1,230,960 |
The Company recognized total stock-based compensation costs, which are reflected in operating expenses:
|  | Year Ended January 31, |
|  | 2020 |  |  | 2019 |
2017 Plan: |  |  |  |  |  |
Restricted Stock Program |  | $ | (443,441 | ) |  | $ | 721,111 |
Stock Options |  |  | 27,577 |  |  |  | ----- |
Cash-based Bonus |  |  | 38,677 |  |  |  | ----- |
|  | $ | (377,187 | ) |  | $ | 721,111 |
Stock appreciation rights |  | $ | (25,559 | ) |  | $ | 22,646 |
Total stock-based compensation |  | $ | (402,746 | ) |  | $ | 743,757 |
Total income tax benefit (expense) recognized for stock-based compensation arrangements |  | $ | (85,577 | ) |  | $ | 267,752 |
Restricted Stock Units Under the 2017 Plan, as described above, the Company awarded performance-based and service based restricted stock units to eligible employees and directors. The following table summarizes the activity under the 2017 Plan for the year ended January 31, 2020. This table reflects the amount of awards granted at the maximum number of shares that would be issued if the Company were to achieve the maximum performance level under the December 2019 grants.
|  | Performance-Based |  |  | Service-Based |  |  | Total |  |  | Weighted Average Grant Date Fair Value |
Outstanding at January 31, 2019 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Awarded |  |  | 109,234 |  |  |  | 9,930 |  |  |  | 119,164 |  |  | $ | 10.33 |
Vested |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Forfeited |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Outstanding at January 31, 2020 |  |  | 109,234 |  |  |  | 9,930 |  |  |  | 119,164 |  |  | $ | 10.33 |
The actual number of shares of common stock of the Company, if any, to be earned by the award recipients is determined over a three year performance measurement period based on measures that include Earnings Before Interest Taxes Depreciation and Amoritzation (“EBITDA”) with respect to the June 7, 2018 grant and revenue growth, EBITDA margin, and cash flow for the December 4, 2019 grant. The performance targets have been set for each of the Minimum, Target, and Maximum levels.The actual performance amount achieved is determined by the Board and may be adjusted for items determined to be unusual in nature or infrequent in occurrence, at the discretion of the Board. The compensation cost is based on the fair value at the grant date, is recognized over the requisite performance/service period using the straight-line method, and is periodically adjusted for the probable number of shares to be awarded. The Company is recognizing expense related to the December 2019 grants under the 2017 Plan at Target, and these expenses were approximately $153,000 for the year ended January 31, 2020 As of January 31, 2020, unrecognized stock-based compensation expense totaled $912,000 pursuant to the 2017 Plan based on outstanding awards under the Plan. This expense is expected to be recognized over approximately two years. The following table reflects the amount of awards granted at the maximum number of shares that would be issued if the Company were to achieve the maximum performance level in relation to the September 2017 and June 2018 grants
Shares issued under 2017 |  | Outstanding Unvested Grants at Maximum at Beginning of FY20 |  |  | Granted during FY20 |  |  | Becoming Vested during FY20 |  |  | Forfeited during FY20 |  |  | Outstanding Unvested Grants at Maximum at End of January 31, FY20 |
Restricted stock grants – employees |  |  | 84,126 |  |  |  | ----- |  |  |  | ----- |  |  |  | 48,456 |  |  |  | 35,670 |
Restricted stock grants – non-employee directors |  |  | 28,829 |  |  |  | ----- |  |  |  | ----- |  |  |  | 14,493 |  |  |  | 14,336 |
Retainer in stock – non-employee directors |  |  | 25,044 |  |  |  | 7,292 |  |  |  | 7,568 |  |  |  | ---- |  |  |  | 24,768 |
Total restricted stock |  |  | 137,999 |  |  |  | 7,292 |  |  |  | 7,568 |  |  |  | 62,949 |  |  |  | 74,774 |
Weighted average grant date fair value |  |  | 13.77 |  |  |  | 10.44 |  |  |  | 14.72 |  |  |  | 13.82 |  |  |  | 11.53 |
During the year ended January 31, 2020, the Company revised its estimate of grants that will be earned for certain performance periods ending on or before January 31, 2021. Based on actual performance achieved by the Company to date, grants issued on September 12, 2017 expired on January 31, 2020. Also, based on actual performance to date, it was deemed improbable that the Company would meet even the performance level required for the June 7, 2018 grants to vest. As a result, stock-based compensation expense was adjusted to account for this change in estimate. The total amount of previously recognized stock-based compensation attributable to those grants that has been reversed is approximately $835,000. Stock Options During the year ended January 31, 2020 a stock option was granted pursuant to the Company’s 2017 Equity Incentive Plan in the amount of 24,900 shares at an exercise price of $11.17 per share. Such shares will vest at 8,300 shares on each of August 12, 2020, August 12, 2021 and August 12, 2022. The following table represents stock options granted, exercised and forfeited during the year ended January 31, 2020.
Stock Options |  | Number of Shares |  |  | Weighted Average Exercise Price per Share |  |  | Weighted Average Remaining Contractual Term (in years) |  |  | Aggregate Intrinsic Value |
Outstanding at January 31, 2019 |  |  | ----- |  |  | $ | ----- |  |  |  | ----- |  |  | $ | ----- |
Granted |  |  | 24,900 |  |  | $ | 11.17 |  |  |  | ----- |  |  |  | ----- |
Outstanding at January 31, 2020 |  |  | 24,900 |  |  | $ | 11.17 |  |  |  | 9.53 |  |  |  | ----- |
Exercisable at January 31, 2020 |  |  | ----- |  |  | $ | ----- |  |  |  | ----- |  |  | $ | ----- |
The Company recognized approximately $26,000 of stock-based compensation expense during the year ended January 31, 2020 associated with the grant of the stock option. As of January 31, 2020 there is approximately $149,000 of unrecognized stock-based compensation expense. The Company estimates the fair value of each stock option award on the grant date using the Black-Scholes option-pricing model. The assumptions used to calculate the fair value of the options granted during the year ended January 31, 2020 are as follows:
|  | FY20 |
Expected volatility |  |  | 53 | %
Expected life in years |  |  | 10 |
Expected dividend yield |  |  | 0.00 | %
Risk-free interest rate |  |  | 1.65 | %
Other Compensation Plans/Programs Pursuant to the Company’s restricted stock program, all directors are eligible to elect to receive any director fees in shares of restricted stock in lieu of cash. Such restricted shares are subject to a two-year vesting period. The valuation is based on the stock price at the grant date and is amortized to expense over the two-year period, which approximates the performance period. Since the director is giving up cash for unvested shares, and is subject to a vesting requirement, the amount of shares awarded is 133% of the cash amount based on the grant date stock price. As of January 31, 2020, unrecognized stock-based compensation expense related to these restricted stock awards totaled $30,087 for the 2017 Plan. The cost of these non-vested awards is expected to be recognized over a two-year weighted-average period. In addition, as of January 31, 2020, the Company issued 7,568 shares and granted awards for up to an aggregate of 24,768 shares under the 2017 Plan. Stock Repurchase Program On July 19, 2016, the Company’s board of directors approved a stock repurchase program under which the Company may repurchase up to $2,500,000 of its outstanding common stock. During the year ended January 31, 2020, the Company repurchased 47,153 shares of stock, for approximately $506,000, inclusive of commissions. The Company has repurchased 152,801 shares of stock under this program as of January 31, 2020 for $1,671,188, inclusive, of commissions. Warrant In October 2014, the Company issued a five-year warrant that is immediately exercisable to purchase up to 55,500 shares of the Company’s common stock at an exercise price of $11.00 per share. During FY20, such warrant expired. Shelf Registration On March 24, 2017, the Company filed a shelf registration statement on Form S-3 (File No. 333-216943) which was declared effective by the SEC on April 11, 2017 (the “Shelf Registration Statement”). The shelf registration statement permits the Company to sell, from time to time, up to an aggregate of $30.0 million of various securities, including shares of common stock, shares of preferred stock, debt securities, warrants to purchase common stock, preferred stock, debt securities, and/or units, rights to purchase common stock, preferred stock, debt securities, warrants and/or units, units of two or more of the foregoing, or any combination of such securities, not to exceed, should the value of our common stock held by non-affiliates be less than $75.0 million, one-third of the Company's public float in any 12-month period.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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