6.	STOCKHOLDERS’ EQUITY

The Company has a stock incentive plan for the issuance of up to

442,750

shares of common stock. The plan provides for granting eligible participants stock options or other stock awards, as described by the plan, at prices ranging from

85%

110%

of fair market value at date of grant. Options granted expire up to

seven

years after the date of grant. Such options generally become exercisable over a

three

year period. A total of

102,157

shares of common stock are reserved for additional grants of options under the plan as of

December

31,

2018.

Under the plan, the Company charged compensation expense of

$13,634

and

$23,561

against income (loss) in

2018

and

2017,

respectively.

As of

December

31,

2018,

there was approximately

$13,000

of unrecognized compensation expense related to unvested share-based compensation awards granted which is expected to be recognized over the next

three

years.

Proceeds from the exercise of stock options were approximately

$2,000

2017.

stock options were exercised in

2018.

The fair value of options granted during

2018

and

2017

was estimated using the Black-Scholes option pricing model with the following assumptions:

	2018	2017
Dividend yield	—	—
Expected volatility	40.0%	41.3%
Expected life of option	5	5
Risk-free interest rate	2.8%	1.8%
Fair value of each option on grant date	$3.38	$3.43

There were

2,750

and

2,250

options granted during

2018

and

2017,

respectively.

A summary of the status of the Company’s stock option plan as of

December

31,

2018

and changes during the year then ended is presented below:

				Weighted
				Average
				Exercise
	Shares			Price
Outstanding at January 1, 2018		18,168		$	13.81
Granted		2,750			8.63
Exercised		—			—
Expired and forfeited		(2,918	)		12.56
Outstanding at December 31, 2018		18,000		$	13.22
Exercisable at December 31, 2018		12,247		$	15.09

The weighted-average grant date fair value of options granted was

$3.38

and

$3.43

for the years ended

December

31,

2018

and

2017,

respectively. The total intrinsic value of stock options exercised was

$490

for the year ended

December

31,

2017.

In prior years, the Company’s board of directors had authorized the repurchase of up to

250,000

shares of common stock. A total of

219,589

shares were repurchased under this program including

1,950

shares repurchased during the

second

quarter of

2017.

As of

August 2, 2017,

the plan allowed for an additional

30,411

shares to be repurchased. On

August 3, 2017,

the Company’s board of directors approved a new repurchase authorization for up to

100,000

shares of the Company’s common stock, which replaces all prior authorizations. Shares repurchased under this new authorization

may

be made through open market and privately negotiated transactions from time to time. The new share repurchase authorization does

not

have an expiration date. Subsequent to

August 2, 2017

the Company repurchased

33,500

shares for

$278,620

including the repurchase of

25,000

shares for

$218,750

from a beneficial shareholder holding more than

of outstanding common stock.

shares of common stock were repurchased in

2018.