10.	STOCK COMPENSATION PLANS

We instituted the

2003

Incentive Stock Plan (the

“2003

Plan”) in

March 2003.

The

2003

Plan authorized the issuance of up to

450,000

options to purchase shares of common stock to officers and key employees, with vesting of such options occurring equally over a

-year time period. In

2013,

the

2003

Plan expired with

197,500

options ungranted. In the years ended

December 31, 2020

and

2019,

options and

25,000

options, respectively, were exercised under the

2003

Plan. In

June 2015,

shareholders approved the

2015

Incentive Stock Plan (the

“2015

Plan”) which authorizes the issuance of up to

750,000

options to purchase shares of common stock to employees and key consultants and advisors. In

2020

and

2019,

options were exercised under the

2015

Plan. In

2020,

options were granted and in

2019

30,000

options were granted under the

2015

Plan. In

2019,

10,000

options were cancelled under the

2015

Plan.

August 2000,

we instituted a Non-Employee Directors' Stock Option Plan (the “Directors Plan”) that authorized the issuance of up to

200,000

options to purchase shares of common stock to non-employee directors. Upon adoption of the Directors Plan, each non-employee director was granted an option to acquire

5,000

shares. At each Annual Meeting, each director receives a grant of

4,000

options, which vest in

50%

increments on the

first

and

second

anniversary. The Directors Plan expired in

2011,

with

60,000

options ungranted. The shareholders approved a new plan, the

2011

Non-Employee Directors Stock Plan (the

“2011

Directors Plan”), in

May 2011,

with essentially the same terms and conditions as the Directors Plan. In the years ended

December 31, 2020

and

2019,

options and

12,000

options were granted to non-employee members of our board of directors at the

2020

and

2019

Annual Meetings, respectively, pursuant to the

2011

Directors Plan. Additionally, in

2020

and

2019,

options and

8,000

options, respectively, were exercised under the Directors Plan. In

2020

and

2019,

options and

74,000

options, respectively, were exercised under the

2011

Directors Plan. In

2020,

options were cancelled and in

2019,

under the

2011

Directors Plan,

6,000

options were cancelled.

August 2020,

shareholders approved the

2020

Non-Employee Directors' Stock Incentive Plan (the

“2020

Plan”), which replaces the

2011

Director Plan and authorizes the issuance of

200,000

shares of common stock to non-employee directors. During

2020,

an aggregate of

4,380

shares totaling

$150,000

were granted to the

three

independent members of our board of directors pursuant to the

2020

Plan. Pursuant to the terms of the

2020

Plan, the shares were granted at fair market value on the date of the Annual Meeting of Shareholders and vested upon issuance. We expect to grant each independent director

$50,000

of stock on the date of each subsequent Annual Meeting.

Stock options under all plans are granted at an exercise price equal to fair value on the date of grant and vest over

years. As of

December 31, 2020,

a total of

1,356,500

options under all plans have been granted,

947,320

have been exercised,

282,680

have been cancelled,

102,500

are fully vested and exercisable and

24,000

are

not

vested. All options expire

ten

years from their respective dates of grant.

As of

December 31, 2020,

there was

$235,000

of unrecognized compensation cost related to stock options granted under the plans, which is expected to be recognized by the

first

quarter of

2022.

Stock option activity during the years ended

December 31, 2020

and

2019

was as follows:

		20 20			201 9
Options outstanding at January 1				126,500				207,500
Options cancelled				-				(16,000	)
Options exercised				-				(107,000	)
Options granted				-				42,000
Options outstanding at December 31				126,500				126,500

Options available for grant at December 31				885,620				763,000

Options exercisable at December 31				102,500				84,500

Exercise price ranges per share:
Granted				N/A		$19.99	-	$39.11
Exercised				N/A		$0.69	-	$7.80
Outstanding		$1.52	-	$39.11		$1.52	-	$39.11

Weighted average exercise price per share:
Granted				-	$			25.45
Exercised				-	$			1.97
Outstanding at December 31	$			8.94	$			8.94
Exercisable at December 31	$			5.61	$			2.21

The following tables summarize information about the stock options outstanding under the Company's option plans as of

December 31, 2020.

Options Outstanding:
Range of Exercise Price			Number Outstanding		Wgt. Avg. Contractual Life Remaining (in years)		Wgt. Avg. Exercise Price		Aggregate Intrinsic Value
$1.52	-	$1.72		67,500		0.5	$	1.59	$	2,600,325
$3.50	-	$39.11		59,000		7.6	$	17.35	$	1,342,770
$1.52	-	$39.11		126,500		3.8	$	8.94	$	3,943,095

Options Exercisable:
Range of Exercise Price			Number Exercisable		Wgt. Avg. Contractual Life Remaining (in years)		Wgt. Avg. Exercise Price		Aggregate Intrinsic Value
$1.52	-	$1.72		67,500		0.5	$	1.59	$	2,600,325
$3.50	-	$39.11		35,000		7.3	$	13.36	$	936,370
$1.52	-	$39.11		102,500		2.8	$	5.61	$	3,536,695

Aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of the year ended

December 31, 2020

and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on

December 31, 2020.

The amount of aggregate intrinsic value will change based on the fair value of the Company's common stock.