XML 25 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
7. STOCK OPTION PLANS
 12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
STOCK OPTION PLANS

2009 Stock Option Plan

 

On December 10, 2009, the Company established the 2009 Stock Option Plan (the “Option Plan”) for officers and certain full-time and part-time employees of the Company. Non-employee directors of the Company are not entitled to participate under this plan. The Option Plan provides for 5,500,000 shares of common stock for issuance upon the exercise of stock options granted under the plan. Under this plan, stock options are granted at the discretion of the Compensation Committee of the Board of Directors at an option price not less than the fair market value of the stock on the date of grant. The options are exercisable in accordance with terms specified by the Compensation Committee not to exceed ten years from the date of grant. Option activity under this plan follows.

 

   

Number of
shares

    

Weighted

average
exercise price

  
Balance as of January 1, 2014     2,315,000     $ 0.35  
Granted     50,000       0.12  
Exercised     ––       ––  
Expired     (674,500 )     0.49  
Balance as of December 31, 2014     1,690,500     $ 0.29  
Granted     1,155,000       0.49  
Exercised     (256,500 )     0.36  
Expired     (52,500 )     0.16  
Balance as of December 31, 2015     2,536,500     $ 0.38  

 

The weighted average grant date fair value of options granted was $0.04 in 2014.  The weighted average grant date fair value of options granted was $0.13 in 2015.  The aggregate intrinsic value of options outstanding was approximately $4.9 million at December 31, 2015 and $0 at December 31, 2014.  The aggregate intrinsic value of exercisable options was approximately $3.4 million at December 31, 2015 and $0 at December 31, 2014.  As of December 31, 2015 there remained 5,243,500 shares available to be issued under the Option Plan.

 

The following table summarizes information about fixed stock options under the 2009 Stock Option Plan outstanding on December 31, 2015.

 

      Options Outstanding     Options Exercisable  

Exercise

Prices

    

Number

Outstanding

     Weighted Average
Remaining
Contractual Life		     Weighted Average
Exercise Price		    

Number

Exercisable

     Weighted Average
Exercise Price		  
$ 0.18 to 0.25       2,115,000       2.55     $ 0.25       1,421,250     $  0.22  
$ 0.48 to 1.85       421,500       0.41     $ 1.03       226,500     $  0.07  
$ 0.18 to 1.85       2,536,500       2.96     $ 0.38       1,647,750     $ 0.29  

 

2009 Director Stock Option Plan

 

On December 10, 2009 the Company established the 2009 Director Stock Option Plan (the "Directors Plan"). The Directors Plan was established for all Directors of the Company except for any Director who is a full-time employee or full-time officer of the Company. The option price is the fair market value of the common stock on the date the option is granted. There are 700,000 shares authorized for issuance under the Directors Plan. Each option expires five years from the grant date. Option activity under this plan follows.

 

   

Number of

shares

    

Weighted

average

exercise price

  
Balance as of January 1, 2014     270,000       0.31  
Granted     60,000       0.13  
Exercised     ––       ––  
Expired     (165,000 )     ––  
Balance as of December 31, 2014     165,000       0.24  
Granted     105,000       0.87  
Exercised     (30,000 )     0.31  
Expired     (15,000 )     0.41  
Balance as of December 31, 2015     225,000     $ 0.51  

 

The weighted average grant date fair value of options granted was $0.04 in 2014 and $0.26 in 2015.  The aggregate intrinsic value of options outstanding was approximately $0.4 million at December 31, 2015 and $0 at December 31, 2014.  The aggregate intrinsic value of exercisable options was approximately $0.4 million at December 31, 2015 and $0 at December 31, 2014.  As of December 31, 2015 there remained 670,000 shares available to be issued under the Directors Plan.

 

The following table summarizes information about fixed stock options under the Directors Plan on December 31, 2015.

 

      Options Outstanding     Options Exercisable  
Exercise Prices    

Number

Outstanding

    

Weighted Average

Remaining
Contractual Life

    

Weighted Average

Exercise Price

    

Number

Exercisable

    

Weighted Average

Exercise Price

  
$ 0.12-0.14       45,000       3.3     $ 0.13       45,000     $ 0.13  
                                             
$ 0.16-0.20       30,000       2.0     $ 0.18       30,000     $ 0.18  
                                             
$ 0.25-0.26       30,000       1.3     $ 0.26       30,000     $ 0.26  
                                             
$ 0.35-0.36       15,000       .6     $ 0.36       15,000     $ 0.36  
                                             
$ 0.18-1.20       105,000       4.6     $ 0.87       105,000     $ 0.87  
$ 0.12-1.20       225,000       3.30     $ 0.51       225,000     $ 0.51  

 

The Black-Scholes range of assumptions for the Option Plan and the Directors Plan are shown below:

 

    2015     2014  
Assumptions            
             
Expected life   2.75 (yrs) - 3.5 (yrs)     2.75 (yrs) - 3.5 (yrs)  
             
Expected volatility     41.69% - 45.52 %     46.40% - 48.71 %
                 
Risk-free interest rate     0.67% - 1.57 %     0.57% - 1.32 %
                 
Expected dividend yield     0.00 %     0.00 %

 

The unrecognized stock based compensation expense related to non-vested stock awards was approximately $79 thousand as of December 31, 2015.  This amount will be recognized through the fourth quarter of 2017.