Stock-Based Compensation

3 Months Ended

Mar. 31, 2016

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

Note 8. Stock-Based Compensation

The Company has stock option agreements with its directors and officers for serving on the Company’s Board of Directors and as officers. The options activity is as follows:

			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, 2015		27,500		12.92				0.3 years		-
Options granted		-		-	$	0		-		-
Options exercised		-		-				-		-
Options expired		(22,500)	$	(2.62)				-		-
Balance, January 1, 2016		5,000	$	10.30				0.3 years	$	-
Options granted		-		-	$	0		-		-
Options exercised		-		-				-		-
Options expired		-	$	-				-		-
Balance, March 31, 2016		5,000	$	10.30				0.3 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.