3. Stock-Based Compensation

6 Months Ended

Jun. 30, 2014

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

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

3.  Stock-Based Compensation

The Company grants stock options under the Stock Option Plans to key employees and directors for valuable services provided to the Company.   During the three months ended June 30, 2014, the Company issued 200,000 stock options to members of Executive Management that vest ratably over five years.  Stock based compensation expense relating to stock option awards and restricted stock units (RSU’s) for the three months ended June 30, 2014 and 2013 was $30,307 and $37,552, respectively.

These expenses were included in the cost of sales and selling, general and administrative lines of the Consolidated Statements of Comprehensive Income (Loss).   Stock Compensation expense relating to stock option awards and restricted stock units (RSU’s) for the six months ended June 30, 2014 and 2013 was $53,305 and $80,080, respectively.

Unamortized stock compensation expense as of June 30, 2014 relating to stock options totaled approximately $328,994 and these costs will be expensed over a weighted average period of approximately 9.82 years. Unamortized stock compensation expense as of June 30, 2014 relating to RSU’s totaled approximately $117,381 and these costs will be expensed over a weighted average period of approximately 2.06 years. Further details of the Company’s stock-based compensation are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC.

The following table summarizes stock option activity under the Stock Option Plans for the six months ended June 30, 2014:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2014		113,726		$	6.66		4.94	$	1,600
Granted		200,000			4.52		-		90,000
Exercised		-			-		-		-
Forfeited or expired		(10,000	)		6.47		-		-
Outstanding at  June 30, 2014		303,726		$	5.26		7.99	$	90,750
Exercisable at  June 30, 2014		98,726		$	6.36		4.18	$	750
Nonvested at  June 30, 2014		205,000		$	4.73		9.82	$	90,000

The following table summarizes RSU activity under the 2010 Equity Incentive Plan for the six months ended June 30, 2014:

	Number of Shares			Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding  at January 1, 2014		46,125		$	4.36		1 .24	$	237,083
Granted		9,000			5.00		-		45,000
Forfeited		(1,000	)		5.14		-		(5,140	)
Vested		(18,125	)		5.66		-		(98,023	)
Outstanding  at June 30, 2014		36,000		$	5.49		2.22	$	197,550
Expected to vest		25,830		$	5.43		2.06	$	117,381