Note 13

Stock-based compensation:

Stock Options

On October 27, 2016, the Company's stockholders approved the Company's adoption of the new 2016 Omnibus Incentive Stock Plan ("2016 Plan") having 2,058,880 shares available for issuance in respect of awards made thereunder. The Company terminated the 2013 Stock Incentive Plan in October 2016. As of December 31, 2017, the aggregate number of shares of common stock remaining available for issuance for awards under the 2016 Plan totaled 1,624,795.

A summary of option transactions for all of the Company's stock options during the years ended December 31, 2017 and 2016 follows:

	Number of Stock Options			Weighted Average Exercise Price
Outstanding at December 31, 2015		536,904		$	8.07
Granted		468,002			2.90
Exercised		-			-
Expired/forfeited		(104,767	)		10.35
Outstanding at December 31, 2016		900,139			5.11
Granted		101,250			1.46
Exercised		-			-
Expired/forfeited		(135,667	)		4.78
Outstanding at December 31, 2017		865,722		$	4.74
Exercisable at December 31, 2017		542,905		$	6.10
Options expected to vest at December 31, 2017		188,484		$	2.24

The outstanding and exercisable options at December 31, 2017, have a range of exercise prices and associated weighted remaining contractual life and weighted average exercise price, as follows:

Options Range of Exercise Prices		Outstanding Number of Shares		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Exercisable Number of Shares		Exercisable Weighted Avg. Exercise Price
$	1.29 - $5.00		483,585		8.90	$	2.58		160,867	$	2.90
$	5.01 - $10.00		372,500		7.62		6.19		372,500		6.19
$	10.01 - $181.00		9,637		5.44		56.65		9,538		56.35
Total			865,722		8.31	$	4.74		542,905	$	6.10

The weighted average remaining contractual life of exercisable options was 7.84 years and 7.56 years at December 31, 2017 and 2016, respectively.

As the share price as of December 31, 2017 was $1.23, the aggregate intrinsic value for options outstanding and exercisable was $0.

Stock awards under the Company's stock option plans have been granted with exercise prices that are no less than the market value of the stock on the date of the grant. Options granted under the plans are generally time-based or performance-based options and vesting varies accordingly (see below for specific vesting conditions). Options under the plans expire up to a maximum of ten years from the date of grant. The fair value of each option award granted during the period is estimated on the date of grant using the Black-Scholes option valuation model and assumptions as noted in the following table:

	Years Ended December 31,
	2017	2016
Risk-free interest rate	1.98 – 2.17%	1.51 – 2.18%
Volatility	46%-48%	50%
Expected dividend yield	0%	0%
Expected life	5.5 years	6.5 years
Estimated forfeiture rate	0%	0%

The expected life of the options is based on the observed and expected time to full-vesting, forfeiture and exercise. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. Volatility is based on the Company's historical stock prices matching the expected term of the award. The risk-free rate is based on rates provided by the U.S. Treasury with a term equal to the expected life of the option. The Company has never paid dividends and does not currently anticipate paying any in the foreseeable future.

On December 6, 2016, the Company granted an aggregate of 90,000 options to purchase common stock to the board directors with a strike price of $2.75. The options vested over a one year period and expire ten years from the date of grant. The aggregate fair value of the options granted was $127.

On October 31, 2016, the Company issued 108,501 options to purchase common stock to its Chief Executive Officer with a strike price of $2.75. The options vest over three years and expire ten years from the date of grant. The aggregate fair value of the options granted was $150. Additionally, the Company issued 201,501 options to purchase common stock to its Chief Executive Officer with a strike price of $2.75. These options vest based on performance goals determined by the board of directors for each of the years 2017 through 2019. The aggregate fair value of the options granted was $279. The 67,167 options associated with 2017 performance goals were forfeited effective December 31, 2017 as the goals were not met, and it is not probable that the performance goals for 2018 and 2019 will be met. Accordingly, no compensation expense has been recorded for these performance-based options.

On June 7, 2016, the Company granted an aggregate of 68,000 options to purchase common stock to a number of employees with a strike price of $3.75. The options vest over four years and expire ten years from the date of grant. The aggregate fair value of the options granted was $128.

On May 10, 2017 the Company granted 11,250 options to purchase common stock to a new board director with a strike price of $2.78. The options vested during 2017 and expire ten years from the date of grant. The aggregate fair value of the options granted was $14.

On December 1, 2017, The Company granted an aggregate of 90,000 options to purchase common stock to the board directors with a strike price of $1.29. The options vest over a one year period and expire ten years from the date of grant. The aggregate fair value of the options granted was $54.

Stock-based compensation expense, which is included in general and administrative expense, for the years ended December 31, 2017 and 2016 was $186 and $113, respectively. As of December 31, 2017 there was $190 in unrecognized compensation expense, which will be recognized over a weighted average period of 1 year.