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Stockholders' Equity
 3 Months Ended
Apr. 30, 2025
STOCKHOLDERS EQUITY  
Stockholders' Equity
 
8.
Stockholders’ Equity
On June 21, 2017, the stockholders of the Company approved the Lakeland Industries, Inc. 2017 Equity Incentive Plan (the “2017 Plan”). 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”).
An aggregate of 1,240,000 shares of the Company’s common stock are currently authorized for issuance under the 2017 Plan, as amended, 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 Company recognized total stock-based compensation costs, which are reflected in operating expenses (in $
000
’s):
 
 
  
Three Months Ended April 30,
 
 
  
2025
 
  
2024
 
2017 Plan:
  
  
Total restricted stock and stock option programs
    $ 329      $ 198  
Total income tax expense recognized for stock-based compensation arrangements
    $ 69      $ 42  
  
 
 
     
 
 
  
 
Restricted Stock and Restricted Stock Units
Under the 2017 Plan, as described above, the Company awarded performance-based and service-based shares of restricted stock and restricted stock units to eligible employees and directors. The following table summarizes the activity under the 2017 Plan for the three months ended April 30, 2025 and 2024. This table reflects the amount of awards granted and the number of shares that would be vested if the Company were to achieve the maximum performance level under the March 2023, April 2024 and April 2025 grants.
 
 
  
Performance-
Based
 
  
Service-
Based
 
  
Total
 
  
Weighted
Average
Grant
Date Fair
Value
 
Outstanding at January 31, 2025
      69,670        182,135        251,805      $
 
 17.36  
Awarded
      —         65,108        65,108      $ 16.14  
Vested
      (3,304 )
 
      (12,435 )
 
      (15,739 )
 
    $ 20.60  
Forfeited
      —         —         —      
Outstanding at April 30, 2025
      66,366        234,808        301,174      $ 16.93  
 
 
  
Performance-
Based
 
  
Service-
Based
 
  
Total
 
  
Weighted
Average
Grant
Date Fair
Value
 
Outstanding at January 31, 2024
      82,330        112,890        195,220      $ 16.61  
Awarded
      12,799        48,461        61,260      $ 18.45  
Vested
      —         (20,274 )       (20,274 )     $ 17.92  
Forfeited
      (4,281 )       (14,233 )       (18,514 )    
Outstanding at April 30, 2024
      90,848        126,844        217,692      $ 16.61  
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 Amortization (“EBITDA”) margin, revenue growth, and return on invested capital for the April 2022 grants. Performance measures for the March 2023 grants are revenue growth, EBITDA margin and return on invested capital. The performance measures for the April 2024 grants are aggregate revenue during FY25, FY26, and FY27; EBITDA margin; and free cash flow margin. The performance measures for the April 2025 grants are aggregate revenue during FY26, FY27, and FY28; Adjusted EBITDA; and free cash flow margin. The performance targets have been set for each of the Minimum, Target, and Maximum levels. The actual performance amount achieved is determined by the Committee and may be adjusted for items determined to be unusual in nature or infrequent in occurrence, at the discretion of the Committee.
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. As of April 30, 2025, unrecognized stock-based compensation expense totaled $3.5 million pursuant to the 2017 Plan based on outstanding awards under the Plan. This expense is expected to be recognized over approximately t
hree
years.
Stock Repurchase Program
On April 7, 2022, the Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $5.0 million of its outstanding common stock, which became effective upon the completion of a prior share repurchase program. On December 1, 2022, the Board of Directors authorized an increase in the Company’s stock repurchase program, under which the Company may repurchase up to an additional $5.0 million of its outstanding common stock.
No
shares were repurchased during Q
1
FY
26
, leaving $
5.0
 million remaining under the share repurchase program at April 
30
,
2025
. The share repurchase program has
no
expiration date but may be terminated by the Board of Directors at any time.