The 1997 Stock Option Plan (the “1997 Plan”) and 2013 Equity Incentive Plan (the “2013 Plan”) authorize the issuance of both nonqualified and incentive stock options. Payment for the shares may be made in cash, shares of the Company’s common stock or a combination thereof. Under the terms of the plans, incentive stock options and non-qualified stock options are granted at a minimum of 100% of fair market value on the date of grant and may be exercised at various times depending upon the terms of the option. All existing options expire 10 years from the date of grant or one year from the date of death.

Under the 2013 Plan, the Company is authorized to grant options to purchase up to 600,000 shares of its common stock. As of December 31, 2019, options to purchase an aggregate of 325,000 shares were outstanding under the 2013 Plan, of which options to purchase 300,000 shares were exercisable, and 275,000 additional shares were available for issuance pursuant to awards that may be granted under the plan in the future.

Under the 1997 Plan, the Company was authorized to grant options to purchase up to 450,000 shares of its common stock. As of December 31, 2019, options to purchase an aggregate of 7,500 shares were outstanding and exercisable under the 1997 Plan. The board terminated the plan in 2014. The existing grants may be exercised according to the terms of the grant agreements.

During the 2018 fourth quarter, the Company granted an employee options to purchase 25,000 shares of common stock. The options were priced at fair market value and vested 20% on the grant date, with an additional 20% vesting on the first four anniversaries of the grant date. The options expire 10 years from the date of grant.

The assumptions made in estimating the fair value of the options on the grant date based upon the BSM option-pricing model for the year ended December 31, 2018 are as follows:

The Company calculates expected volatility for stock options and other awards using historical volatility as the Company believes the expected volatility will approximate historical volatility.

The following table summarizes the activity for outstanding incentive stock options under the 2013 Plan to employees of the company:

	Options Outstanding
	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (1)

Balance at January 1, 2018		100,000	$	3.81		7.7
Granted		25,000		3.64		10.0
Exercised		0
Canceled/forfeited/expired		0
Balance at December 31, 2018		125,000		3.78		8.1
Granted		0
Exercised		0
Canceled/forfeited/expired		0
Balance at December 31, 2019		125,000	$	3.78		7.1
Vested and exercisable as of December 31, 2019		100,000					$	9

The following table summarizes the activity for outstanding stock options under the 2013 Plan and 1997 Plan to directors of the company:

	Options Outstanding
	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (1)

Balance at January 1, 2018		207,500	$	4.62		5.4
Granted		0
Exercised		0
Canceled/forfeited/expired		0
Balance at December 31, 2018		207,500		4.62		4.4
Granted		0
Exercised		0
Canceled/forfeited/expired		0
Balance at December 31, 2019		207,500	$	4.62		3.4
Vested and exercisable as of December 31, 2019		207,500					$	0

The weighted average grant date fair value of options granted during the year ended December 31, 2018, under the 2013 Plan, was $3.64. The Company recognized compensation expense in connection with the issuance of the options of approximately $11 and $15 during the years ended December 31, 2019 and 2018, respectively.

There were no options exercised during the years ended December 31, 2019 and 2018.

As of December 31, 2019, there was approximately $15 of unrecognized compensation expense under the 2013 Plan. The Company expects to recognize this expense over the next three years. To the extent the forfeiture rate is different than we have anticipated; stock-based compensation related to these awards will be different from our expectations.