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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 28, 2023

Estimated Useful Life of Property and Equipment

Depreciation is computed on the straight-line method over the assets’ estimated useful lives as follows:


Furniture and fixtures		Five to ten years
Equipment		Five to ten years
Leasehold improvements		Lesser of useful lives or related lease term
Hardware and software		Three to seven years

Other Comprehensive Income (loss) and Reclassifications from AOCI

Other comprehensive income (loss) includes amounts related to foreign currency and pension plans and is reported in the Consolidated Statements of Comprehensive Income (Loss). Other comprehensive income (loss) and reclassifications from AOCI for fiscal 2022, fiscal 2021 and fiscal 2020 are as follows:


	Fiscal 2022									Fiscal 2021									Fiscal 2020
(in thousands)
	Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total
Balance at beginning of fiscal year	$	(5,466	)	$	(59	)	$	(5,525	)	$	(6,224	)	$	3		$	(6,221	)	$	(6,478	)	$	47		$	(6,431	)

Other comprehensive income (loss) before reclassifications, net of taxes		568			(7	)		561			799			(62	)		737			(428	)		(44	)		(472	)

Recognition of accumulated foreign currency translation adjustment (1)		—			66			66			—			—			—			—			—			—

Amounts reclassified from accumulated other comprehensive income (loss), net of taxes (2)		(30	)		—			(30	)		(41	)		—			(41	)		682			—			682

Other comprehensive income (loss) for the period		538			59			597			758			(62	)		696			254			(44	)		210

Balance at end of fiscal year	$	(4,928	)	$	-		$	(4,928	)	$	(5,466	)	$	(59	)	$	(5,525	)	$	(6,224	)	$	3		$	(6,221	)

(1)

In connection with the Company’s closing of its remaining store in Toronto, Canada, the Company recognized the accumulated foreign currency translation adjustment as an expense, which was included in the Consolidated Statement of Operations for fiscal 2022.

(2)

Includes the amortization of the unrecognized (gain)/loss on pension plans, which was charged to selling, general and administrative expense on the Consolidated Statements of Operations for all periods presented. The amortization of the unrecognized loss was $682,000 for fiscal 2020. For fiscal 2022 and fiscal 2021, the Company recognized income of $39,000 and $41,000, respectively, as a result of a change in amortization from average remaining future service to average remaining lifetime. The corresponding tax provision for fiscal 2022 was $9,000. There was no related tax effect for fiscal 2021 and fiscal 2020.

Reconciliation of Number of Shares Outstanding for Basic and Diluted Earnings Per Share

The following table provides a reconciliation of the number of shares outstanding for basic and diluted earnings per share:


	FISCAL YEARS ENDED
	January 28, 2023		January 29, 2022		January 30, 2021
(in thousands)
Common stock outstanding:
Basic weighted average common shares outstanding		62,825		63,401		51,317
Common stock equivalents – stock options, deferred stock and RSUs (1)		4,065		4,630		—
Diluted weighted average common shares outstanding		66,890		68,031		51,317

(1)

Common stock equivalents, in thousands, of 159 shares for January 30, 2021 were excluded due to the net loss.

Potential Common Stock Equivalents Excluded from Computation of Diluted Earnings Per Share

The following potential common stock equivalents were excluded from the computation of diluted earnings per share in each year because the exercise price of such options was greater than the average market price per share of common stock for the respective periods or because the unearned compensation associated with either stock options, RSUs, or deferred stock had an anti-dilutive effect.


	FISCAL YEARS ENDED
	January 28, 2023		January 29, 2022		January 30, 2021
(in thousands, except exercise prices)
Stock options (time-vested)		102		302		3,648
RSUs (time-vested)		104		—		812
Deferred stock		—		—		191
Range of exercise prices of such options	$4.48 - $7.43		$4.19 -$5.50		$0.53 - $7.02

Valuation Assumptions for Stock Options

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions in the table. The fair value of each non-vested share is equal to the closing price of the Company’s stock on the date of grant. The weighted-average fair value of options granted and non-vested shares granted shown below does not include shares granted to directors in lieu of compensation.


Fiscal years ended:	January 28, 2023	January 29, 2022	January 30, 2021
Expected volatility	87.9% - 123.7%	97.4% - 104.9%	82.3% - 87.8%
Risk-free interest rate	2.52% - 4.41%	0.31% - 0.60%	0.22% - 0.27%
Expected life (in years)	2.0 - 3.5	3.0 - 4.0	3.0 - 4.0
Dividend rate	-	-	-
Weighted average fair value of options granted	$3.58	$0.47	$0.32
Weighted average fair value of non-vested shares granted	$5.28	$0.66	$0.42