Note 9 - Shareholders' Equity

6 Months Ended

Jan. 28, 2012

Stockholders' Equity Note Disclosure [Text Block]

NOTE 9 – SHAREHOLDERS’ EQUITY

During the first quarter of fiscal year 2012, the Company granted options to purchase 2,000 common shares at an exercise price of $9.50 per share.  The options under this grant vest 25% immediately and 25% per year over the next three years.  The aggregate fair value of these options was $12.  During the second quarter of fiscal year 2012, the Company granted options to purchase 50,000 common shares at an exercise price of $10.00 per share.  The options vest after one year of service.  The aggregate fair value of these options was $306.  All of the options were granted under the Amended and Restated 2007 Incentive Stock Plan.  The fair value of these grant awards was determined using the following assumptions in the Black-Scholes model: an estimated life of seven years, volatility of approximately 63%, risk free interest rate of 1.31% to 1.36% and the assumption that no dividends will be paid.

In the three and six months ended January 28, 2012, the Company recorded $55 and $75, respectively, of compensation expense related to stock options and $88 and $176, respectively,  related to restricted stock issuance.  In the three and six months ended January 29, 2011, the Company recorded $25 and $65, respectively, of compensation expense related to stock options.  There were no exercises of stock options during the first six months of fiscal 2012 or 2011.

Effective as of the Annual Meeting of shareholders on December 15, 2011, the Board approved the accelerated vesting of all stock options and restricted stock held by James R. Henderson, a former director of the Company, in connection with his departure from the Board, in recognition of his long term service to the Company.  Additional stock compensation expense of $39 has been recognized for the modification expense and accelerated vesting and $4 was recorded to recognize the accelerated vesting of the restricted stock issued in fiscal year 2011.