Note 6 - Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

6. STOCKHOLDERS’ EQUITY

The Company maintains the

2019

Equity Incentive Plan (the

“2019

 Plan”). The

2019

 Plan replaced the

1995

Incentive Stock Option Plan (the

"1995

Plan) upon its ratification by shareholders in

April 2019.   

The

1995

plan authorized the issuance of up to

442,750

shares of common stock.  Of those shares,

16,000

were subject to outstanding options as of

December 31, 2019. 

Awards granted under the

1995

 Plan will remain in effect until they are exercised or expire according to their terms.    At the time the

2019

Plan was approved, there were

102,157

shares reserved for future grants under the

1995

Plan which will

no

longer be available for future grants.  

Under the terms of the

2019

 Plan, the number of shares of common stock that

may

be the subject of awards and issued under the

2019

 Plan was initially set at

102,157.

  Subsequent to the approval of the

2019

Plan,

750

outstanding options granted under the

1995

were forfeited.  Under the terms of the

2019

Plan, those forfeited options are added back to the

2019

Plan reserve pool bringing the number of shares of common stock available for future awards under the

2019

 Plan to

102,907.

  As of

December 31, 2019,

3,250

options have been granted under the

2019

 Plan.

The Company charged compensation expense of

$8,821

 and

$13,634

 against (loss) income in

2019

 and

2018,

respectively.

As of

December 

31,

2019,

there was approximately

$12,000

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

three

years.

No

stock options were exercised in

2019

or

2018.

The fair value of options granted during

2019

 and

2018

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

	2019		2018
Dividend yield	—		—
Expected volatility	37.5	%	40.0	%
Expected life of option (years)	5		5
Risk-free interest rate	1.7	%	2.8	%
Fair value of each option on grant date	$2.53		$3.38

There were

3,250

 and

2,750

 options granted during

2019

 and

2018,

respectively.

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

December 

31,

2019

 and changes during the year then ended is presented below:

				Weighted
				Average
				Exercise
	Shares			Price
Outstanding at January 1, 2019		18,000		$	13.22
Granted		3,250			7.15
Exercised		—			—
Expired and forfeited		(2,000	)		21.69
Outstanding at December 31, 2019		19,250		$	11.32
Exercisable at December 31, 2019		13,415		$	12.83

In

2017,

the Company’s board of directors had authorized the repurchase of

100,000

shares of common stock.   A total of

33,500

 shares have been repurchased under this program in prior years.  On

April 29, 2019

the Company's board of directors approved an additional repurchase authorization of

33,500

shares of the Company's common stock bringing the total repurchase authorization to

100,000

shares of common stock.  A total of

40,699

 shares have been repurchased under this program including the

7,199

 shares repurchased during

2019.

  The plan allows for an additional

92,801

 shares to be repurchased.  The share repurchase authorizations do 

not

have an expiration date.