STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2016

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

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

NOTE 4 - STOCK-BASED COMPENSATION

During the three month period ended March 31, 2016, the Company modified all previously issued outstanding options to purchase its common stock. This modification resulted in an aggregate increase of 19,174 options. The Company did not record any compensation expense in connection with the issuance of these options, as the issuance was made as the result of an equity restructuring event. See Note 9 for further discussion. There were no options granted or Common Stock awards issued during the three-month period ended March 31, 2015.

The following is a summary of the changes in outstanding options during the three-month period ended March 31, 2016:

	Option Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding, January 1, 2016		457,000	$	6.15		4.0	$	1,431,000
Granted		19,174		5.89
Exercised		(6,000)		3.81
Forfeited		(26,500)		6.55
Expired		—		—
Outstanding, March 31, 2016		443,674	$	5.90		3.5	$	1,729,000
Vested, March 31, 2016		424,507	$	5.81		3.4	$	1,697,000

Included in the forfeited options in the table above are 20,998 options the Company purchased from Nationwide employees for $50,000 in connection with the sale of Nationwide.

The following is a summary of changes in non-vested options for the three months ended March 31, 2016:

	Option Shares		Weighted Average Grant- Date Fair Value
Non-vested options, January 1, 2016		23,840	$	6.72
Granted		829		6.45
Vested		—		—
Forfeited		(5,502)		6.72
Non-vested options, March 31, 2016		19,167	$	6.71

The number of shares of Common Stock available for issuance under the P&F Industries, Inc. 2012 Stock Incentive Plan (the “2012 Plan”), as of March 31, 2016 was 180,593. At March 31, 2016, there were 116,174 options outstanding issued under the 2012 Stock Incentive Plan and 327,500 options outstanding issued under the 2002 Stock Incentive Plan.

Restricted Stock

Pursuant to the 2012 Plan, the Company, in May 2015, granted 1,000 restricted shares of its Common Stock to each non-employee member of its Board of Directors, totaling 5,000 restricted shares. The Company determined that the fair value of these shares was $8.63, which was the closing price of the Company’s Common Stock on the date of the grant. These shares cannot be traded earlier than the first anniversary of the grant date. As such, the Company is ratably amortizing the total non-cash compensation expense of approximately $43,000 in its selling, general and administrative expenses through May 2016.