4.	Stock-Based Compensation

We grant stock awards for a fixed number of shares to employees, consultants, and directors pursuant to the our shareholder-approved equity incentive plans.

We account for stock-based compensation using the modified prospective method, which requires measurement of compensation cost for all stock awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest. The fair value of stock options is determined using a Lattice Binomial model for options with performance-based vesting tied to our stock price and the Black-Scholes valuation model for options with ratable term vesting. Both the Lattice Binomial and Black-Scholes valuation models require the input of subjective assumptions. These assumptions include estimating the length of time optionees will retain their vested stock options before exercising them (the “expected term”), the estimated volatility of our common stock price over the expected term, and the number of awards that will ultimately not complete their vesting requirements (“forfeitures”). Changes in these subjective assumptions can materially affect the estimate of fair value of stock-based compensation and, consequently, the related amount recognized as an expense on the consolidated statements of operations. As required under applicable accounting rules, we review our valuation assumptions at each grant date and, as a result, we are likely to change our valuation assumptions used to value stock-based awards granted in future periods. The values derived from using either the Lattice Binomial or the Black-Scholes model are recognized as an expense over the vesting period, net of estimated forfeitures. The estimation of stock awards that will ultimately vest requires significant judgment. Actual results, and future changes in estimates, may differ from our current estimates.

The compensation expense recognized is summarized in the table below (in thousands except per share amounts):

	Three Months
	April 30,
	2016			2015
Stock-based compensation expense	$	13		$	7
Impact on basic and diluted earnings per share	$	(0.00	)	$	(0.00	)

The total compensation cost related to nonvested awards not yet recognized is approximately $4,000.

During the three months ended April 30, 2016 and 2015, no stock options and no restricted stock units were granted.

Transactions and other information related to stock options granted under these plans for the three months ended April 30, 2016 are summarized below:

	Outstanding Options
				Weighted-Ave.
	Number of			Exercise
	Shares			Price
Balance, January 31, 2016		950,000		$	0.66
Options granted		-			-
Options canceled or expired		(90,000	)		-
Options exercise		-			-
Balance, April 30, 2016		860,000		$	0.70
Stock Options Exercisable at April 30, 2016		520,000		$	0.98

As of April 30, 2016, the stock awards outstanding have an aggregate intrinsic value of $600, based on a closing market price of $0.16 per share on April 30, 2016. The following table summarizes information about the Company’s stock awards outstanding at April 30, 2016:

		Awards Outstanding						Options Exercisable
				Weighted-Ave.
Range of		Number		Remaining		Weighted-Ave.		Number		Weighted-Ave.
Exercise/Grant Prices		Outstanding		Contractual Life		Exercise/Grant Price		Exercisable		Exercise Price
$	0.14		200,000		9.14	$	0.14		0	$	0.14
$	0.16		100,000		9.09	$	0.16		0	$	0.16
$	0.40		425,000		6.26	$	0.40		425,000	$	0.40
$	1.09		100,000		2.53	$	1.09		60,000	$	1.09
$	4.53		15,000		1.84	$	4.53		15,000	$	4.53
$	10.43		20,000		0.14	$	10.43		20,000	$	10.43
			860,000			$	0.70		520,000	$	0.98

	Shares available under the plans for future grants at April 30, 2016 were 219,724.