Note 5 - Share-based Compensation

12 Months Ended

Dec. 31, 2015

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

Note

–

Share-Based

Compensation

2007

Stock

Incentive

Option

Plan

In October 2007, March 2008 and July 2009, the Company issued options to purchase 420,000, 10,000 and 345,000 shares, respectively, of the Company’s common stock under the Company’s 2007 Stock Incentive Plan. The options vest over a five year period and are exercisable at $0.20 to $0.62 per share, the last sales price of the Company’s common stock as reported on the OTCQB on the date of grant. There were no options granted in 2015 or 2014. A summary of the status of the Company’s 2007 Stock Incentive Plan as of December 31, 2015 and 2014 is presented below.

	2015
	Options			W e ig ht ed Exercise Price		Weighted Life (in years)
Options outstanding - beginning of year		638,000		$	0.38		3.75
Granted		-			-
Exercised		(7,000	)		0.05
Forfeited / Cancelled		-			-
Options outstanding - end of year	$	631,000			0.38		2.69
Options exercisable - December 31, 2015	$	610,000			0.39		2.56

	2014
	Options			W e ig ht ed Exercise Price		Weighted Life (in years)
Options outstanding - beginning of year		645,000		$	0.38		4.79
Granted		-			-
Exercised		(7,000	)		0.05
Forfeited / Cancelled		-			-
Options outstanding - end of year	$	638,000			0.38		3.75
Options exercisable - December 31, 2014	$	610,000			0.39		3.56

The aggregate intrinsic value of options outstanding at December 31, 2015 and 2014 under the 2007 Stock Incentive Plan was $1,680 and $2,520, respectively.

The aggregate intrinsic value of stock options above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the options) that would have been received by the option holders had they exercised their options on December 31, 2015 and 2014. The aggregate intrinsic value of stock options changes based on the changes in the market value of the Company’s common stock. The fair value (present value of the estimated future benefit to the option holder) of each option grant is estimated on the date of the grant using the Black-Scholes Merton option pricing model.

There were a total of 21,000 and 28,000 unvested options at December 31, 2015 and 2014, respectively. The total fair value of shares vested during years ended December 31, 2015, and 2014, was $14,000. For the years ended December 31, 2015 and 2014, the Company recognized share-based compensation expense of $150 and $3,890, respectively. As of December 31, 2015 and 2014, there was approximately $272 and $422, respectively, of unamortized stock option compensation expense.

Restricted Stock

The Company did not grant any restricted stock awards during 2015 or 2014. During 2015 and 2014, there were no restricted shares or forfeitures. There were 34,000 and 59,000 restricted shares that vested during 2015 and 2014, respectively. For the years ended December 31, 2015 and 2014, the Company recognized $2,574 and $4,072 of share-based compensation expense. As of December 31, 2015, there were 10,000 shares of restricted stock unvested and $1,730 of unrecognized share-based compensation expense that will be recognized in future periods.