Stock-Based Compensation
Stock Incentive Plan
Under the Company's 2019 Employee Stock Incentive Plan (the “2019 Plan”), the Company may grant an aggregate of 1,000,000 shares to its employees in the form of restricted stock units and non-employee directors in the form of restricted stock awards. Restricted stock awards granted under the 2019 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock units or awards and related compensation expense as the difference between the market value of the units or awards on the date of grant less the exercise price of the units or awards granted. During fiscal year 2026, the Company granted 23,003 awards to non-employee directors, vested 16,066 shares according to their terms and forfeited zero shares under the 2019 Plan. As of January 31, 2026, there were 498,856 shares available for future issuance under the 2019 Plan.
The following table summarizes the stock-based compensation expense related to restricted stock awards recognized in the Company's statement of operations:
| | | | | | | | | | | |
| January 31, |
| 2026 | | 2025 |
| (In thousands) |
| | | |
| Cost of goods sold | $ | — | | | $ | 37 | |
| Selling, general and administrative expenses | 208 | | | 358 | |
| Total stock-based compensation expense | $ | 208 | | | $ | 395 | |
| | | |
The following table summarizes the Company’s restricted stock unit awards activity, and related information:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| January 31, | |
| | 2026 | | 2025 | |
| Restricted stock units | | Weighted- Average Exercise Price | | Restricted stock units | | Weighted- Average Exercise Price | |
| | | | | | | | |
| Outstanding at beginning of year | 16,066 | | | $ | 15.55 | | | 164,110 | | | $ | 4.18 | | |
| Granted | 23,003 | | | 8.14 | | | 16,066 | | | 15.55 | | |
| Vested | (16,066) | | | 15.55 | | | (164,110) | | | 15.13 | | |
| Forfeited | — | | | — | | | — | | | — | | |
| Outstanding at end of year | 23,003 | | | 8.14 | | | 16,066 | | | 15.55 | | |
| Weighted-average fair value of restricted stock units granted during the year | $ | 187,244 | | | 8.14 | | | $ | 249,826 | | | 15.55 | | |
| Weighted-average fair value of restricted stock units vested during the year | $ | 249,826 | | | | | $ | 2,482,984 | | | | |
As of January 31, 2026, there was $62,000 of total unrecognized compensation expense related to restricted stock awards. That expense is expected to be recognized over a weighted-average period of 0.3 years. As of January 31, 2025, there was $83,000 of total unrecognized compensation expense related to restricted stock awards. That expense was recognized during fiscal 2026.
To satisfy employee minimum statutory tax withholding requirements for restricted stock awards that vest, the Company withholds and retires a portion of the vesting common shares, unless an employee elects to pay cash. In fiscal 2026, the Company withheld no common shares. In fiscal 2025, the Company withheld 27,872 common shares, with a value of approximately $412,000. These amounts are presented as a cash outflow from financing activities in the accompanying consolidated statements of cash flows.