Stock-Based Compensation

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Note 9. Stock-Based Compensation

The Company has stock option agreements with its directors for serving on the Company’s board of directors and with certain officers and employees as part of their compensation. The option activity is as follows for years ended December 31, 2013 and 2012:

		Weighted Average		Weighted Average		Weighted Average
	Number	Exercise Price		Fair Value at		Remaining	Intrinsic
	of Shares	per Share		Grant Date		Contractual Life	Value
Balance January 1, 2012	45,600	$	14.75			1.0 years		-
Options granted	-		-	$	0	-		-
Options exercised	-		-			-		-
Options expired	-		-			-		-
Balance, January 1, 2013	45,600	$	14.75			1.0 years	$	-
Options granted	-		-	$	0	-		-
Options exercised	-		-			-		-
Options expired	(600)		(0.05)			-		-
Balance, December 31, 2013	45,000	$	14.90			1.0 years	$	-

Prior to June 30, 2010 the Company had not adopted a formal stock option plan. The number of options issued and the grant dates were determined at the discretion of the Company’s Board. Certain options vest at the date of grant and others vest over a one year period. The options are exercisable for periods not exceeding three to five years from the date of grant. On July 1, 2010 at its annual meeting of stockholders, the 2010 Stock Option and Award Plan was approved.

The fair values of stock options are estimated using the Black-Scholes method, which takes into account variables such as estimated volatility, expected holding period, dividend yield, and the risk free interest rate. The risk free interest rate is the five year treasury rate at the date of grant. The expected life is based on the contractual life of the options at the date of grant.

The fair value of shares that vested was $5,189 and $5,538 for the years ended December 31, 2013 and 2012, respectively.

As of December 31, 2013 total compensation cost related to non-vested awards not yet recognized was $2,619 to be recognized over a 12 month period.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details