iMedia Brands, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)

9 Months Ended

Oct. 31, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Schedule of warrants outstanding [Table Text Block]

The following table summarizes information regarding warrants outstanding at October 31, 2020:



Grant Date	Warrants Outstanding	Warrants Exercisable	Exercise Price (Per Share)	Expiration Date
September 19, 2016	297,616	297,616	$29.00	September 19, 2021
November 10, 2016	33,386	33,386	$30.00	November 10, 2021
January 23, 2017	48,930	48,930	$17.60	January 23, 2022
March 16, 2017	5,000	5,000	$19.20	March 16, 2022
May 2, 2019	349,998	349,998	$15.00	May 2, 2024
April 17, 2020	367,197	367,197	$2.66	April 14, 2025
May 22, 2020	122,398	—	$2.66	April 14, 2025
June 8, 2020	122,399	—	$2.66	April 14, 2025
June 12, 2020	122,398	—	$2.66	April 14, 2025
July 11, 2020	244,798	—	$2.66	April 14, 2025

Schedule of non-vested restricted stock award activity [Table Text Block]

A summary of the status of the Company’s non-vested restricted stock award activity as of October 31, 2020 and changes during the nine months then ended is as follows:



	Restricted Stock
	Shares	Weighted Average Grant Date Fair Value
Non-vested outstanding, February 1, 2020	50,000	$	9.39
Granted	—	$	—
Vested	—	$	—
Non-vested outstanding, October 31, 2020	50,000	$	9.39

Schedule of stock options valuation assumptions [Table Text Block]

The fair value of each time-based vesting option award is estimated on the date of grant using the Black-Scholes option pricing model that uses assumptions noted in the following table. Expected volatilities are based on the historical volatility of the Company's stock. Expected term is calculated using the simplified method taking into consideration the option's contractual life and vesting terms. The Company uses the simplified method in estimating its expected option term because it believes that historical exercise data cannot be accurately relied upon at this time to provide a reasonable basis for estimating an expected term due to the extreme volatility of its stock price and the resulting unpredictability of its stock option exercises. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yields were not used in the fair value computations as the Company has never declared or paid dividends on its common stock and currently intends to retain earnings for use in operations.



	Fiscal 2019
Expected volatility:	75%	-	82%
Expected term (in years):	6 years
Risk-free interest rate:	1.4%	-	2.6%

Schedule of stock option activity [Table Text Block]

A summary of the status of the Company’s stock option activity as of October 31, 2020 and changes during the nine months then ended is as follows:



	2011 Plan		Weighted Average Exercise Price		2004 Plan		Weighted Average Exercise Price
Balance outstanding, February 1, 2020	247,000		$	12.44	6,000		$	51.52
Granted	—		$	—	—		$	—
Exercised	—		$	—	—		$	—
Forfeited or canceled	(213,000	)	$	12.37	(3,000	)	$	48.92
Balance outstanding, October 31, 2020	34,000		$	12.87	3,000		$	53.49
Options exercisable at October 31, 2020	26,000		$	14.96	3,000		$	53.49

Schedule of stock options outstanding, vested and expected to vest [Table Text Block]

The following table summarizes information regarding stock options outstanding at October 31, 2020:



	Options Outstanding						Options Vested or Expected to Vest
Option Type	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value		Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
2011 Incentive:	34,000	$	12.87	6.3	$	8,000	32,000	$	13.13	6.2	$	7,000
2004 Incentive:	3,000	$	53.49	3.4	$	—	3,000	$	53.49	3.4	$	—

Schedule of grant date fair value assumptions, market-based restricted stock performance units [Table Text Block]

Grant date fair values were determined using a Monte Carlo valuation model based on assumptions as follows:



	Fiscal 2019
Total grant date fair value	$482,000
Total grant date fair value per share	$5.14
Expected volatility	74%	-	82%
Weighted average expected life (in years)	3 years
Risk-free interest rate	1.7%	-	2.3%

Schedule of vesting criteria, market-based restricted stock performance units [Table Text Block]

The percent of the target market-based restricted stock performance units that will be earned based on the Company's TSR relative to the peer group is as follows:



Percentile Rank		Percentage of Units Vested
< 33%		0%
33%		50%
50%		100%
100%		150%

Valuation assumptions of May 2, 2019 market-based restricted stock unit [Table Text Block]

Grant date fair values and derived service periods for each tranche were determined using a Monte Carlo valuation model based on assumptions, which included a weighted average risk-free interest rate of 2.5%, a weighted average expected life of 2.9 years and an implied volatility of 80% and were as follows for each tranche:



	Fair Value (Per Share)	Derived Service Period
Tranche 1 (one year)	$3.66	1.00 Year
Tranche 2 ($20.00/share)	$3.19	3.27 Years
Tranche 3 ($40.00/share)	$2.85	4.53 Years

Schedule of restricted stock unit activity [Table Text Block]

A summary of the status of the Company’s non-vested restricted stock unit activity as of October 31, 2020 and changes during the nine-month period then ended is as follows:



	Restricted Stock Units
	Market-Based Units				Time-Based Units				Performance-Based Units			Total
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Non-vested outstanding, February 1, 2020	129,000		$	6.49	435,000		$	5.96	—	$	—	564,000		$	6.08
Granted	—		$	—	469,000		$	2.33	146,000	1.69		615,000		$	2.18
Vested	—		$	—	(100,000	)	$	4.37	—	—		(100,000	)	$	4.37
Forfeited	(69,000	)	$	9.05	(67,000	)	$	4.22	—	—		(136,000	)	$	6.70
Non-vested outstanding, October 31, 2020	60,000		$	3.52	737,000		$	4.03	146,000	$	1.69	943,000		$	3.64