STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2020

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

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

11. STOCK-BASED COMPENSATION

The Company’s 2011 Stock Option Plan (the Plan) provides for the grant of options to purchase up to 120,000 shares of the Company’s common stock to the officers and directors of the Company. The Plan expires on August 24, 2021.

The Company’s policy is to record stock compensation expense in accordance with ASC Topic 718, “Share-Based Payments”. Stock based compensation expense is recognized using the fair-value method for all awards.

For the year ended December 31, 2020 no options were granted, exercised, expired, or forfeited.

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 year ended December 31, 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.

As of December 31, 2020, and 2019, there is no unrecognized non-employee stock compensation expense related to unvested stock options under the Plan.

A summary of the status of the Company’s stock option plan as of December 31, 2020 and 2019, and changes during the periods ending on those dates are presented below:

	As of December 31, 2020				As of December 31, 2019
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at the beginning of the period		9,600	$	13.55		1,600	$	15.30
Granted		-		-		8,000		13.20
Exercised		-		-		-		-
Expired		-		-		-		-
Forfeited		-		-		-		-
Outstanding at the end of the period		9,600	$	13.55		9,600	$	13.55
Options exercisable at period-end		9,600	$	13.55		9,600	$	13.55
Weighted average fair value of options granted during the period		-		-		-		-
Aggregate intrinsic value of outstanding and exercisable options at the end of the period		9,600	$	13.55		9,600	$	13.55