3. Stock-Based Compensation

9 Months Ended

Sep. 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 September 30, 2014, the Company did not grant any stock options.  Stock based compensation expense relating to stock option awards and restricted stock units (RSU’s) for the three months ended September 30, 2014 and 2013 was $38,052 and $35,255, 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 nine months ended September 30, 2014 and 2013 was $91,357 and $115,335, respectively.

Unamortized stock compensation expense as of September 30, 2014 relating to stock options totaled $309,768 and these costs will be expensed over a weighted average period of 9.57 years. Unamortized stock compensation expense as of September 30, 2014 relating to RSU’s totaled $77,440 and these costs will be expensed over a weighted average period of 1.81 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 nine months ended September 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
Exercised		-			-
Forfeited or expired		(10,000	)		6.47
Outstanding at  September 30, 2014		303,726		$	5.26		7.73	$	114,694
Exercisable at  September 30, 2014		98,726		$	6.36		3.93	$	1,334
Nonvested at September 30, 2014		205,000		$	4.73		9.57	$	113,360

The following table summarizes RSU activity under the 2010 Equity Incentive Plan for the nine months ended September 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
Forfeited		(1,000	)		5.14
Vested		(18,125	)		5.66
Outstanding  at September 30, 2014		36,000		$	5.49		1.97	$	183,240
Expected to vest		25,830		$	5.43		1.81	$	131,475