Stockholders' Equity

12 Months Ended

Jan. 31, 2012

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

10.Stockholders’ Equity

Income Per Share

Basic income per share is based upon the Company’s weighted average number of common shares outstanding during each period. Diluted income per share is based upon the weighted average number of common shares outstanding during each period, assuming the issuance of common shares for all dilutive potential common shares outstanding during the period, using the treasury stock method. Potential common stock of 122,000 and 118,000 shares were not included in the computation of diluted income per share for the years ended January 31, 2012 and 2011, respectively, as the inclusion of the potential common stock would be anti-dilutive.

	Years Ended January 31,
	2012		2011
Weighted average shares outstanding-basic		3,760,483		3,739,211
Dilutive effect of stock options and warrants		286,533		314,088
Weighted average shares outstanding-diluted		4,047,016		4,053,299

Options to Purchase Stock

In July 2004, the Company adopted the Aerosonic Corporation 2004 Stock Incentive Plan (“2004 SIP”), which authorized the awarding of options to purchase up to a total of 400,000 shares of the Company’s common stock. For option awards, the 2004 SIP provides that the strike price shall not be less than the fair market value of the common stock on the date of grant and that no portion of any option award may be exercised beyond ten years from that date. In addition, no incentive stock option can be granted and exercised beyond five years to a stockholder owning 10% or more of the Company’s outstanding common stock. On July 13, 2009, stockholders approved an amendment to the Aerosonic Corporation 2004 Stock Incentive Plan (the Plan) that extended the duration of the Plan for five years to July 14, 2014 and increased the total number of shares of Aerosonic common stock issuable pursuant to the Plan from 400,000 shares of common stock to 550,000 shares.

During the first quarter of fiscal year 2012, the Company issued to its President and Chief Executive Officer, options to purchase 6,000 shares of the Company’s common stock at the common stock’s market price on that day of $2.70. Additionally, the Company issued to its Executive Vice President and Chief Financial Officer, its Executive Vice President of Sales and Marketing and its Executive Vice President of Operations, options to purchase 4,000 shares each of the Company’s common stock at the common stock’s market price on that day of $2.87. In the second quarter of fiscal year 2012, the Company issued to its Vice President of Technology and Product Development, options to purchase 4,000 shares of the Company’s common stock at the common stock’s market price on that day of $3.06, These options vest from one to three years from the date of grant.

A summary of the activity related to the Company’s stock options during fiscal year 2012 and 2011 is presented in the table below:

	Years Ended January 31,
	2012							2011
	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In years)		Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In years)
Beginning options outstanding		320,200		$	2.82				324,600		$	2.80
Options granted		22,000		$	2.86				-		$	-
Options exercised		(1,000	)	$	1.01				(1,000	)	$	1.01
Options expired, cancelled or forfeited		(2,000	)	$	1.87				(3,400	)	$	2.25
Ending options outstanding		339,200		$	2.83		6.81		320,200		$	2.82		7.67
Options exercisable at January 31,		250,000		$	3.09		6.54		156,000		$	3.39		7.38

Stock options vest over a period of two to four years and have 10-year terms. Exercise prices of stock options awarded for all periods were equal to the market price of the stock on the date of grant. The weighted average grant date fair value per share of options granted during the years ended January 31, 2012 and 2011, vested and unvested, was $2.83 and $0, respectively.

As of January 31, 2012, there was approximately $57,000 of unrecognized compensation cost related to unvested options. This cost is expected to be recognized over a weighted average period of approximately 1.5 years.

The Company recorded equity-based compensation expense on its options in accordance with U.S. GAAP of approximately $127,000 and $180,000 for the years ended January 31, 2012 and 2011, respectively, which is included in selling, general and administrative expenses.

During the fiscal year ended January 31, 2012 and January 31, 2011, 1,000 options were exercised, respectively.