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NOTE 10 - SHARE-BASED COMPENSATION
 12 Months Ended
Feb. 03, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
NOTE 10 – SHARE-BASED COMPENSATION

The Stock Incentive Plan permits incentive awards of restricted stock, restricted stock units, stock appreciation rights and performance grants to key employees.  A maximum of 750,000 shares of the Company’s common stock is authorized for issuance under the Stock Incentive Plan.  The Stock Incentive Plan also provides for annual restricted stock awards to non-employee directors. We have issued restricted stock awards to our non-employee directors since January 2006.

We account for restricted stock awards as “non-vested equity shares” until the awards vest or are forfeited. Restricted stock awards to non-employee directors vest if the director remains on the board through a 36-month service period and may vest earlier upon certain events specified in the plan.  The fair value of each share of restricted stock is the market price of our stock on the grant date. The weighted average grant-date fair value of restricted stock awards issued during fiscal years 2013, 2012 and 2011 was $10.38, $9.83, and $11.60 per share, respectively.

The restricted stock awards outstanding as of February 3, 2013 had an aggregate grant-date fair value of $305,000, after taking vested and forfeited restricted shares into account.  As of February 3, 2013, we have recognized non-cash compensation expense of approximately $161,000 related to these non-vested awards and $341,000 for awards that have vested.  The remaining $143,000 of grant-date fair value for unvested restricted stock awards outstanding at February 3, 2013 will be recognized over the remaining vesting periods for these awards.

For each restricted common stock issuance, the following table summarizes restricted stock activity, including the weighted average issue price of those shares on the grant date, the fair value of each grant of restricted stock on the grant date, compensation expense recognized for the unvested shares of restricted stock for each grant and the remaining fair value of the unvested shares of restricted stock for each grant as of February 3, 2013:

   
Whole
   
Grant-Date
   
Aggregate
   
Compensation
   
Grant-Date Fair Value
 
   
Number of
   
Fair Value
   
Grant-Date
   
Expense
   
Unrecognized At
 
   
Shares
   
Per Share
   
Fair Value
   
Recognized
   
Febuary 3, 2013
 
                               
Awards outstanding balance at January 31, 2010
                    $ 341        
                                 
Restricted shares Issued on June 11, 2010
    7,325     $ 11.60     $ 85       76     $ 9  
                                         
Restricted shares Issued on June 10, 2011
    11,165     $ 9.83       110       61       49  
                                         
Restricted shares Issued on June 5, 2012
    10,573     $ 10.38       110       24       85  
                                         
Awards outstanding at February 3, 2013:
    29,063             $ 305     $ 161     $ 143  

We awarded time -based restricted stock units to certain senior executives during the 2012 and 2013 fiscal years. Each restricted stock unit, or “RSU”, entitles the executive to receive one share of the Company’s common stock if he remains continuously employed with the Company through the end of a three-year service period. The RSUs may be paid in shares of the Company’s common stock, cash or both, at the discretion of the Compensation Committee. The RSUs are accounted for as “non-vested stock grants.” Similar to the restricted stock grants issued to our non-employee directors, RSU compensation expense is recognized ratably over the applicable service period. However, unlike restricted stock grants, no shares are issued, or other payment made, until the end of the applicable service period (commonly referred to as “cliff vesting”) and grantees are not entitled to receive dividends on their RSUs during that time. The fair value of each RSU is the market price of a share of our common stock on the grant date, reduced by the present value of the dividends expected to be paid on a share of our common stock during the applicable service period, discounted at the appropriate risk-free rate. The following table presents RSU activity for the years ended February 3, 2013 and January 29, 2012, adjusted for forfeitures:

   
Whole
   
Grant-Date
   
Aggregate
   
Compensation
   
Grant-Date Fair Value
 
   
Number of
   
Fair Value
   
Grant-Date
   
Expense
   
Unrecognized At
 
   
Units
   
Per Unit
   
Fair Value
   
Recognized
   
February 3, 2013
 
                               
                               
RSUs Awarded on September 7, 2011
    10,684     $ 8.21     $ 88     $ 42     $ 46  
RSUs Awarded on February 9, 2012
    11,846     $ 11.95       140       55       85  
RSUs Awarded on January 15, 2013
    9,823     $ 13.66       134       -       134  
                                         
Awards outstanding at Febuary 3, 2013:
    32,353             $ 362     $ 97     $ 265  

No compensation expense was recognized in fiscal 2013 for the RSUs awarded on January 15, 2013, because the performance period related to those awards did not begin until the start of the 2014 fiscal year on February 4, 2013.