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Stock-Based Compensation and Stockholders' Rights
 12 Months Ended
Jan. 31, 2012
Stock-Based Compensation and Stockholders' Rights [Abstract]  
Stock-Based Compensation and Stockholders' Rights

5. Stock-Based Compensation and Stockholders’ Rights

Stock Incentive Plans

The Company’s two stock plans are the 2007 Employee Stock Incentive Plan (the “2007 Plan”) and the 1997 Employee Incentive Stock Plan (the “1997 Plan”). Under the 2007 Plan, the Company may grant an aggregate of 1,000,000 shares to its employees and non-employee directors in the form of stock options or awards. Restricted stock or stock units awarded under the 2007 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock unit awards and related compensation expense as the difference between the market value of the awards on the date of grant less the exercise price of the awards granted. The Company granted 68,960 awards during fiscal 2011. As of January 31, 2012, there were approximately 131,200 shares available for future issuance under the 2007 Plan.

 

The 1997 Plan expired in 2007 and there were no unexercised options outstanding at January 31, 2012. Stock options awarded to employees under the 1997 Plan had to be at exercise prices equal to the fair market value of the Company’s common stock on the date of grant. Stock options generally have a maximum term of 10 years and generally become exercisable ratably over a five-year period.

The shares of common stock issued upon exercise of a previously granted stock option are considered new issuances from shares reserved for issuance upon adoption of the various plans. While the Company does not have a formal written policy detailing such issuance, it requires that the option holders provide a written notice of exercise to the stock plan administrator and payment for the shares prior to issuance of the shares.

Accounting for the Plans

A summary of the Company’s stock option activity, and related information for the years ended January 31, is as follows:

 

                                                 
    2012     2011     2010  
          Weighted-           Weighted-           Weighted-  
          Average           Average           Average  
          Exercise           Exercise           Exercise  
    Options     Price     Options     Price     Options     Price  

Outstanding at beginning of year

     12,100     $ 8.82       12,100     $ 8.82       102,869     $ 10.79  

Granted

     —         —         —         —         —         —    

Exercised

     —         —         —         —         —         —    

Forfeited

     (12,100 )      —         —         —         (90,769 )      11.06  
   

 

 

            

 

 

            

 

 

          

Outstanding at end of year

     —         —         12,100       8.82       12,100       8.82  
   

 

 

            

 

 

            

 

 

          

Exercisable at end of year

     —         —         12,100       8.82       12,100       8.82  

The data included in the above table has been retroactively adjusted, if applicable, for stock dividends.

Restricted Stock Unit Awards

The following table presents a summary of restricted stock and stock unit awards:

 

                                 
                      Unrecognized  
                      Compensation  
    Expense for 12 months ended     Cost at  
    1/31/2012     1/31/2011     1/31/2010     1/31/2012  

2007 Plan

                                

68,960 Grants of Restricted Stock, issued 6/21/2011, vesting over 1 year

   $ 133,000     $ —       $ —       $ 66,000  

56,455 Grants of Restricted Stock, issued 6/8/2010, vesting over 1 year

     58,000       116,000       —         —    

382,500 Restricted Stock Units, issued 6/16/2009, vesting over 5 years

     235,000       268,000       178,000       527,000  

49,854 Restricted Stock Units, issued 6/16/2009, vesting over 1 year

     —         58,000       116,000       —    

262,500 Restricted Stock Units, issued 6/19/2007, vesting over 5 years

     309,000       357,000       357,000       99,000  

35,644 Grants of Restricted Stock, issued 6/17/2008, vesting over 1 year

     —         —         58,000       —    

1997 Plan

                                

270,000 Restricted Stock Units, issued 6/30/2004, vesting over 5 years

     —         —         147,000       —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Totals for the period

   $ 735,000     $ 799,000     $ 856,000     $ 692,000  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

A summary of the Company’s restricted stock unit awards activity, and related information for the following years ended January 31, is as follows:

 

                                                 
    2012     2011     2010  
    Restricted     Weighted-
average fair
value of
restricted		     Restricted     Weighted-
average fair
value of
restricted		     Restricted     Weighted-
average fair
value of
restricted		  
    stock units     stock units     stock units     stock units     stock units     stock units  

Outstanding at beginning of year

     467,455     $ 4.19       589,854     $ 4.38       296,644     $ 6.59  

Granted

     68,960       2.89       56,455       3.10       432,354       3.51  

Vested

     (178,455 )      4.29       (178,854 )      4.47       (139,144 )      3.52  

Forfeited

     (67,000 )      4.31       —                 —            
   

 

 

            

 

 

            

 

 

          

Outstanding at end of year

     290,960       3.80       467,455       4.19       589,854       4.38  
   

 

 

            

 

 

            

 

 

          

Weighted-average fair value of restricted stock units granted during the year

           $ 2.89             $ 3.10             $ 3.51  

Stockholders’ Rights

On October 15, 1996, the Board of Directors declared a dividend of one preferred stock purchase right (the “Rights”) for each outstanding share of the Company’s common stock. Each of the Rights entitles a stockholder to purchase for an exercise price of $50.00 ($20.70, as adjusted for stock splits and stock dividends), subject to adjustment, one one-hundredth of a share of Series A Junior Participating Cumulative Preferred Stock of the Company, or under certain circumstances, shares of common stock of the Company or a successor company with a market value equal to two times the exercise price. The Rights are not exercisable, and would only become exercisable for all other persons when any person has acquired or commences to acquire a beneficial interest of at least 20% of the Company’s outstanding common stock. The Rights have no voting privileges, and may be redeemed by the Board of Directors at a price of $.001 per Right at any time prior to the acquisition of a beneficial ownership of 20% of the outstanding common stock. There are 200,000 shares (483,153 shares as adjusted by stock splits and stock dividends) of Series A Junior Participating Cumulative Preferred Stock reserved for issuance upon exercise of the Rights. On July 31, 2007, the Company and Mellon Investor Services LLC entered into an amendment to the Rights Agreement governing the Rights. The amendment, among other things, extended the term of the Rights issued under the Rights Agreement to October 25, 2016, removed the dead-hand provisions from the Rights Agreement, and formally replaced the former Rights Agent, The Chase Manhattan Bank, with its successor-in-interest, Mellon Investor Services LLC.