NOTE 18 – STOCK INCENTIVE PLANS

During 2005, the stockholders approved the 2004 Equity Incentive Plan (the “2004 Plan”) to provide equity incentives to selected persons. Awards may be granted to employees, officers, directors, consultants and advisors of the Company or subsidiary. Awards granted under the 2004 Plan may be either stock options or restricted stock awards and are designated at the time of grant. Options granted under the 2004 Plan to directors, consultants and advisors are non-qualified stock options. Options granted to officers and other employees may be incentive stock options or non-qualified stock options. Restricted stock awards may be made to any plan participant. As of December 31, 2019, there were no authorized shares available for future grants under the 2004 Plan.

During 2013, the stockholders approved the 2013 Equity Incentive Plan (the “2013 Plan”) to provide equity incentives to selected persons. Awards may be granted to employees, officers, directors, consultants and advisors of the Company or subsidiary. Awards granted under the 2013 Plan may be either stock options or restricted stock awards and are designated at the time of grant. Restricted stock awards may be made to any plan participant. As of December 31, 2019, there were 15,898 shares available for future grants under the 2013 Plan.

During 2019, the Company’s stockholders approved the 2019 Equity Incentive Plan (the “2019 Plan”) to provide equity incentives to selected persons. Awards may be granted to employees, officers, directors, consultants and advisors of the Company or subsidiary. Awards granted under the 2019 Plan may be either stock options or restricted stock awards and are designated at the time of grant. Restricted stock awards may be made to any plan participant. As of December 31, 2019, there were 269,387 shares available for future grants under the 2019 Plan.

Information regarding the Company’s restricted stock grants activity for the years ended December 31, 2019 and 2018 are as follows:


	2019			2018
		Weighted			Weighted
		Average			Average
	Number of	Grant Date		Number of	Grant Date
	Shares	Fair Value		Shares	Fair Value
Unvested restricted stock, beginning of year	97,465	$	24.45	85,761	$	18.34
Granted (vesting period between 3-5 years)	74,670		21.96	50,045		28.85
Forfeited	(18,412)		24.38	(4,148)		17.66
Vested	(41,050)		22.26	(34,193)		16.39
Unvested restricted stock, end of period	112,673	$	23.60	97,465	$	24.45

Total stock-based compensation related to restricted stock awards was $1.0 million and $767 thousand for the years ended December 31, 2019 and December 31, 2018, respectively. As of December 31, 2019 and 2018, there were $1.8 million and $1.6 million, respectively, of unrecognized compensation cost related to non-vested restricted stock awards which is expected to be recognized over a weighted average period of 3.6 years and 2.1 years.

Options granted to officers and other employees and which are incentive stock options, are subject to limitations under Section 422 of the Internal Revenue Code. The option price under each such grant shall not be less than the fair market value on the date of the grant. No option will be granted for a term in excess of ten years. The Company established a vesting schedule that must be satisfied before the options may be exercised.

Stock option transactions under all plans are summarized as follows:


		Weighted
		Average		Weighted
		Exercise		Average	Aggregate
	Number of	Price per		Contractual	Intrinsic
	Shares	Share		Term	Value
Outstanding, December 31, 2017	69,123	$	11.10
Options granted	—		—
Options expired	—		—
Options exercised	—		—
Outstanding, December 31, 2018	69,123		11.10
Options granted	—		—
Options expired	(5,077)		11.37
Options forfeited	(14,304)	$	11.37
Outstanding, December 31, 2019	49,742	$	11.17	5.4	$	683,998
Exercisable, December 31, 2019	40,349	$	10.87	5.3	$	567,067

The following table summarizes information about stock options outstanding and exercisable at December 31, 2019:


		Weighted
		Average
Exercise	Number	Remaining	Number
Price	Outstanding	Life (Years)	Exercisable
9.97	23,000	4.9	23,000
10.25	6,526	5.1	5,220
12.83	20,216	6.2	12,129
	49,742	5.4	40,349

During the year ended December 31, 2019 there were $5 thousand stock options exercised with an intrinsic value of $161 thousand to the stock options outstanding. There were no options exercised in 2018.

During the year ended December 31, 2019 and 2018, we expensed $33 thousand and $49 thousand, respectively, in stock-based compensation under stock options awards.

There were no options granted during the year ended December 31, 2019 and 2018. The weighted average expected life of stock options represents the period of time that the stock options are expected to be outstanding and is estimated using historical data of stock option exercises and estimated forfeiture rates. Expected future expense relating to the non-vested options outstanding as of December 31, 2019 is $16 thousand over a weighted average period of 0.4 years. Upon exercise of vested options, management expects to draw on authorized unissued stock as the source of the shares.