On August 4, 2011, the Company's stockholders approved the 2011 Incentive Plan. 500,000 shares of common stock were authorized for issuance under the 2011 Incentive Plan. On June 16, 2016, the Company's stockholders approved the Amended and Restated 2011 Incentive Plan (the “Plan”) which increased the number of shares of common stock authorized for issuance under the Plan to 750,000 shares of common stock. The Company believes that such awards better align the interests of its employees with those of its shareholders. Option awards are generally granted with an exercise price either at or 10% above the market price of the Company's common stock at the date of grant; those option awards generally have 5-year contractual terms and generally vest over three years. Restricted stock awards are measured at a value equal to the market price of the Company's common stock on the date of grant which is recognized over the service period of the shares. Total stock-based compensation expense for the years ended December 31, 2020 and 2019 was $790,000 and $112,000, respectively.

The following table summarizes information about stock options outstanding and exercisable at December 31, 2020:

	Number of Shares Outstanding			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in years)		Aggregate Intrinsic Value (in thousands)
Option Balances at December 31, 2019		78,379		$	7.43	$	2.00		2.7	$	593
Options Granted		-			-		-		-		-
Options Exercised		(20,329	)		4.21		0.98		-		-
Options Forfeited		-			-		-		-		-
Option Balances at December 31, 2020		58,050		$	8.56	$	2.37		2.5	$	236
Options Exercisable at December 31, 2020		38,123		$	6.80	$	1.66		1.9	$	220

There were no options granted during 2020; the weighted-average grant-date fair value of options granted during 2019 was $4.02. As of December 31, 2020, there was approximately $65,000 of total unrecognized compensation expense related to unvested share-based compensation arrangements for stock options, which will be recognized over the weighted average remaining term of these awards (2.5 years).

The Company bases expected volatility on the weighted average historical stock volatility of the Company's common stock. There is no dividend rate, as dividends are not expected to be paid. The expected term utilizes historical data to estimate the period of time that the options are expected to remain unexercised. The Company bases risk-free rates on the U.S. Treasury zero-coupon rates with a remaining term equal to the expected term of the option. The Company records any forfeitures in the period that the shares are forfeited. The inputs to the option valuation model for the options granted during the year ended December 31, 2019 were expected volatility of 40%, dividend rate of zero, expected term of 3.55 years and a risk-free rate of 1.63%.

Restricted Stock Awards

A summary of the Company’s restricted stock awards for the year ended December 31, 2020 follows:

	Number of Shares			Weighted Average Grant Date Fair Value		Aggregate Grant Date Fair value (in thousands)
Balance at December 31, 2019		-		$	—	$	—
Granted		113,144			10.30		1,165
Vested		(57,382	)		11.15		(640	)
Balance at December 31, 2020		55,762		$	9.42	$	525

As of December 31, 2020, there was $415,000 of total unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.2 years. Total fair value of shares vested during the years ended December 31, 2020 and 2019 was $640,000 and $86,000, respectively.

During the year ended December 31, 2020, the Company issued 113,144 restricted stock awards with a weighted average grant date fair value of $10.30 per share. Certain of these shares, with a grant date fair value of $11.15 per share, vested immediately (57,382); the remaining 55,762, with a grant date fair value of $9.42 per share, will vest during the next three years.

At December 31, 2020, 290,091 shares remained available for future issuance under the Plan.