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STOCK PLANS
6 Months Ended
Jun. 30, 2019
STOCK PLANS [Abstract]  
STOCK PLANS
8.  STOCK PLANS

On January 24, 2019, the Board of Directors of the Company declared a 5% stock dividend payable as of March 29, 2019.  All stock options and restricted stock outstanding have been adjusted to give retroactive effect to stock dividends.

The following table presents the activity related to stock options for the three months ended June 30, 2019.

 
 
Number of
Shares
  
Weighted
Average
Exercise Price
  
Aggregate
Intrinsic Value
  
Weighted
Average
Remaining
Contractual
Term (in years)
 
Options outstanding at Beginning of  Period
  
405,137
  
$
8.72
       
Granted
  
   
       
Expired
  
   
       
Cancelled / Forfeited
  
   
       
Exercised
  
   
       
Options outstanding at End of Period
  
405,137
  
$
8.72
  
$
1,192,539
   
6.91
 
Exercisable (vested) at End of Period
  
224,595
  
$
6.95
  
$
1,038,576
   
5.46
 

The following table presents the activity related to stock options for the six months ended June 30, 2019.

 
 
Number of
Shares
  
Weighted
Average
Exercise Price
  
Aggregate
Intrinsic Value
  
Weighted
Average
Remaining
Contractual
Term (in years)
 
Options outstanding at Beginning of  Period
  
329,160
  
$
8.23
       
Granted
  
77,666
  
$
10.86
       
Expired
  
  
$
       
Cancelled / Forfeited
  
(1,689
)
  
12.41
       
Exercised
  
   
       
Options outstanding at End of Period
  
405,137
  
$
8.72
  
$
1,192,539
   
6.91
 
Exercisable (vested) at End of Period
  
224,595
  
$
6.95
  
$
1,038,576
   
5.46
 

The weighted average grant date fair value per share of options granted during the six months ended June 30, 2019 was $1.82 per share.

There were no options exercised during the six months ended June 30, 2019.  The intrinsic value of options exercised was $81,000 during the six months ended June 30, 2018.  The fair value of awards vested was $141,000 and $114,000 during the six months ended June 30, 2019 and June 30, 2018, respectively.

As of June 30, 2019, there was $327,000 of total unrecognized compensation cost related to non-vested stock options.  This cost is expected to be recognized over a weighted average period of approximately 2.56 years.

There was $38,000 and $73,000 of recognized compensation cost related to stock options granted for the three and six months ended June 30, 2019, respectively.

A summary of the weighted average assumptions used in valuing stock options during the three and six months ended June 30, 2019 is presented below:

 
 
Three Months Ended
June 30, 2019*
  
Six Months Ended
June 30, 2019
 
Risk Free Interest Rate
  
   
2.47
%
 
        
Expected Dividend Yield
  
   
0.00
%
 
        
Expected Life in Years
  
   
5
 
 
        
Expected Price Volatility
  
   
11.86
%

* There were no stock options granted during the three months ended June 30, 2019.

The following table presents the activity related to non-vested restricted stock for the three months ended June 30, 2019.

 
 
Number of
Shares
  
Weighted
Average
Grant Date Fair Value
  
Aggregate
Intrinsic Value
  
Weighted
Average
Remaining
Contractual
Term (in years)
 
Non-vested Restricted stock outstanding at Beginning of  Period
  
126,731
  
$
10.19
       
Granted
  
  

       
Cancelled / Forfeited
  
(1,969
)
 

11.10
       
Exercised/Released/Vested
  

  
       
Non-vested restricted stock outstanding at End of Period
  
124,762
  
$
10.18
  
$
1,434,763
   
2.94
 

The following table presents the activity related to non-vested restricted stock for the six months ended June 30, 2019.

 
 
Number of
Shares
  
Weighted
Average
Grant Date Fair Value
  
Aggregate
Intrinsic Value
  
Weighted
Average
Remaining
Contractual
Term (in years)
 
Non-vested Restricted stock outstanding at Beginning of  Period
  
118,391
  
$
8.94
       
Granted
  
42,262
  

10.86
       
Cancelled / Forfeited
  
(1,969
)
 

11.10
       
Exercised/Released/Vested
  
(33,922
)
  
6.64
       
Non-vested restricted stock outstanding at End of Period
  
124,762
  
$
10.18
  
$
1,434,763
   
2.94
 

The weighted average fair value of restricted stock granted during the six months ended June 30, 2019 was $10.86 per share.

As of June 30, 2019, there was $778,000 of total unrecognized compensation cost related to non-vested restricted stock.  This cost is expected to be recognized over a weighted average period of approximately 2.94 years. 

There was $81,000 and $150,000 of recognized compensation cost related to restricted stock awards for the three and six months ended June 30, 2019, respectively.

The Company has an Employee Stock Purchase Plan (“ESPP”).  There are 295,277 shares authorized for issuance under the ESPP.  The total number of shares authorized has been adjusted to give retroactive effect to stock dividends and stock splits, including the 5% stock dividend declared on January 24, 2019, payable March 29, 2019 to shareholders of record as of February 28, 2019.  The ESPP will expire on March 16, 2026.

The ESPP is implemented by participation periods of not more than twenty-seven months each.  The Board of Directors determines the commencement date and duration of each participation period.  The Board of Directors approved the current participation period of November 24, 2018 to November 23, 2019.  An eligible employee is one who has been continually employed for at least 90 days prior to commencement of a participation period. Under the terms of the ESPP, employees can choose to have up to 10 percent of their compensation withheld to purchase the Company’s common stock each participation period.  The purchase price of the stock is 85 percent of the lower of the fair value on the last trading day before the date of participation or the fair value on the last trading day during the participation period.

As of June 30, 2019, there was $13,000 of unrecognized compensation cost related to ESPP issuances.  This cost is expected to be recognized over a weighted average period of approximately 0.50 years.

There was $6,000 and $13,000 of recognized compensation cost related to ESPP issuances for the three and six months ended June 30, 2019, respectively.

The weighted average fair value at issuance date during the six months ended June 30, 2019 was $2.57 per share.

A summary of the weighted average assumptions used in valuing ESPP issuances during the three and six months ended June 30, 2019 is presented below.

 
 
Three Months Ended
June 30, 2019
  
Six Months Ended
June 30, 2019
 
Risk Free Interest Rate
  
2.67
%
  
2.67
%
 
        
Expected Dividend Yield
  
0.00
%
  
0.00
%
 
        
Expected Life in Years
  
1.00
   
1.00
 
 
        
Expected Price Volatility
  
8.47
%
  
8.47
%