XML 28 R16.htm IDEA: XBRL DOCUMENT v3.20.4
Note 10 - Stock Options and Stock Purchase Warrants
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]
Note
10.
  Stock Options and Stock Purchase Warrants
 
During
2015,
shareholders of the Company approved the
2015
Incentive Plan which authorized the issuance of up to an
500,000
shares of the common stock pursuant to stock options, restricted stock, stock appreciation rights and other equity incentives awarded to directors, officers, consultants, advisors and employees of the Company. Stock option awards under the
2015
Incentive Plan are granted at the market value of the common stock on the date of grant, have vesting periods of
five
years, and expire to the extent unexercised after
ten
years.
 
Under the
2015
Incentive Plan,
no
stock option awards were granted during
2020
or
2019.
No
stock options were exercised during either
2020
or
2019.
 
The following table shows a summary of stock option transactions under the
2015
Incentive Plan during
2020
and
2019:
 
    Number
of Shares		   Weighted
Average
Exercise
Price
Outstanding, January 1, 2018    
460,000
     $
7.34
  
Granted    
-
      
-
  
Exercised    
-
      
-
  
Forfeited or expired    
-
      
-
  
Outstanding, December 31, 2019    
460,000
     $
7.34
  
Granted    
-
      
-
  
Exercised    
-
      
-
  
Forfeited or expired    
(400,000
 )    
(7.40
 )
Outstanding, December 31, 2020    
60,000
     $
6.93
  
                 
Weighted average remaining contractual life was
5.83
years at
December 31, 2020
and
6.61
years at
December 31, 2019.
The exercise price of all stock options was below the market value at both
December 31, 2020
and
2019.
Therefore, there is
no
intrinsic value at
December 31, 2020
and
2019.
Total unrecognized compensation expense on options outstanding as of
December 31, 2020
was
$8
thousand. Options to purchase
42,000
shares of common stock were exercisable as of
December 31, 2020.
 
The Company estimates the fair value of each stock option granted on the date of grant using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of Wilhelmina's and similar companies' common stock for a period equal to the expected term. The risk-free interest rates for periods within the contractual term of the options are based on rates for U.S. Treasury Notes with maturity dates corresponding to the options' expected lives on the dates of grant. Expected term is determined based on the option term of
ten
years.