Stock-Based Compensation

12 Months Ended

Dec. 31, 2015

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

Note 7. 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 the years ended December 31, 2015 and 2014:

			Weighted		Weighted		Weighted
			Average		Average		Average
	Number		Exercise Price		Fair Value at		Remaining		Intrinsic
	of Shares		per Share		Grant Date		Contractual Life		Value
Balance January 1, 2014		45,000		14.75				0.5 years		-
Options granted		-		-	$	0		-		-
Options exercised		-		-				-		-
Options expired		(17,500)	$	(1.83)				-		-
Balance, January 1, 2015		27,500	$	12.92				0.5 years	$	-
Options granted		-		-	$	0		-		-
Options exercised		-		-				-		-
Options expired		(22,500)	$	(2.62)				-		-
Balance, December 31, 2015		5,000	$	10.30				0.5 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 $2,619 for the year ended December 31, 2014.

As of December 31, 2015, all compensation costs related to awards has been recognized.