STOCK OPTIONS

9 Months Ended

Sep. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

8. STOCK OPTIONS

Stock based compensation expense is recognized using the fair-value method for all awards. On July 25, 2019 the Company granted options to purchase 8,000 shares of the Company’s common stock to three directors and one officer.  The exercise price of the options is equal to $13.20 per share, the market price of the stock on the date of grant and the options expires on June 29, 2021.  The Company determined the fair value of its option awards using the Black-Scholes option pricing model.  The following assumptions were used to value the options granted during the nine months ended September 30, 2019: 2 year expected life; expected volatility of approximately 19.5%; risk-free of 1.93% and annual dividend yield of 4%.  The expected life for options granted during the period represents the period of time that options are to be outstanding based on the expiration date of the Plan.  Expected volatilities are based upon historical volatility of the Company’s stock over a period equal to the 2 year expected life.

The weighted average fair value for options granted during the nine months ended September 30, 2019 was $1.11 per share.  For the nine months ended September 30, 2019 the Company recorded approximately $9,000 in stock expense compensation relating to the options granted in 2019. 

The following table summarizes stock option activity during the nine months ended September 30, 2019:

			Weighted
			Average
	Options		Exercise
	Outstanding		Price
Outstanding at January 1, 2019		1,600	$	15.30
Exercised		-		-
Forfeited		-		-
Expired unexercised		-		-
Granted options		8,000		13.20
Outstanding at September 30, 2019		9,600	$	13.55

The following table summarizes information concerning outstanding and exercisable options as of September 30, 2019:

	Number of  securities to be issued upon  exercise of outstanding options		Weighted-average  exercise price of outstanding options		Number of securities  remaining available for future issuance under equity  compensation plans
Equity compensation plan approved by shareholders		9,600	$	13.55		36,608
Equity compensation plan not approved by shareholders		—		—		—
Total		9,600	$	13.55		36,608

As of September 30, 2019, the stock options outstanding and exercisable had no intrinsic value.