Note 10 - Stockholders' Equity

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Shareholders' Equity and Share-based Payments [Text Block]

Note

10

–

Stockholders

'

equity

2001

Non-Qualified Stock Option Plan

In

November 2006,

the Company registered a non-qualified stock option plan that the shareholders had approved in

July 2001,

covering key employees, officers, directors and other persons that

may

be considered as service providers to the Company. Options were awarded by the Board of Directors or by a committee appointed by the Board. Under the plan, an aggregateof

300,000

shares of Company common stock,

$.01

par value, were reserved for issuance or transfer upon the exercise of options which were granted. Unless otherwise provided in the option agreement, options granted under the plan would vest over a

four

-year period commencing

one

year from the anniversary date of the grant. The stock option plan expired on

July 22, 2011.

As of

December 31, 2020

there were

7,000

options outstanding under this plan.

2007

Share Incentive Plan

On

December 12, 2007,

shareholders approved the Company's

2007

Share Incentive Plan (“Incentive Plan”), in connection therewith,

750,000

shares of the Company's common stock are reserved for issuance pursuant to options or restricted stock that

may

be granted under the Share Incentive Plan through

December 12, 2017.

The Plan expired in

December, 2017.

As of

December 31, 2020

there were

345,000

options outstanding under this plan.

2016

Share Incentive Plan

On

December 9, 2016,

shareholders approved the Company's

2016

Share Incentive Plan (

“2016

Incentive Plan”), in connection therewith

750,000

shares of the Company's common stock are reserved for issuance pursuant to options or restricted stock that

may

be granted under the

2016

Incentive Plan through

December 9, 2026.

As of

December 31, 2020,

there were

65,000

options outstanding under this plan.

The purchase price of the common stock under each option plan shall be determined by the Committee, provided, however, that such purchase price shall

not

be less than the fair market value of the shares on the date such option is granted. The stock options generally expire

seven

to

ten

years after the date of grant. The Company recorded stock-based compensation of

$255,000

and

$572,000

for the years ended

December 31, 2020

and

2019,

respectively.

A summary of the stock option activity related to the

2001

Stock Option Plans, the

2007

Share Incentive Plan and the

2016

Share Incentive Plan for the period from

January 1, 2019

through

December 31, 2020

is as follows:

2001 Non-Qualified Stock Option Plan
	Beginning		Granted		Exercised		Canceled			Ending
	Balance		During		During		During			Balance
	Outstanding		Period		Period		Period			Outstanding		Exercisable
Year ended December 31, 2019
Number of shares		22,930		-		-		-			22,930		22,930
Weighted average exercise price per share	$	5.36		-		-		-		$	5.36	$	5.36
Year ended December 31, 2020
Number of shares		22,930		-		-		(15,930	)		7,000		7,000
Weighted average exercise price per share	$	5.36		-		-	$	4.25		$	7.90	$	7.90

2007

Share Incentive Plan

	Beginning		Granted		Exercised		Canceled			Ending
	Balance		During		During		During			Balance
	Outstanding		Period		Period		Period			Outstanding		Exercisable
Year ended December 31, 2019
Number of shares		365,000		-		-		(20,000	)		345,000		285,000
Weighted average exercise price per share	$	12.35		-		-	$	11.61		$	12.33	$	12.76
Year ended December 31, 2020
Number of shares		345,000		-		-		-			345,000		305,000
Weighted average exercise price per share	$	12.33		-		-		-		$	12.33	$	12.60

2016

Share Incentive Plan

	Beginning		Granted		Exercised		Canceled			Ending
	Balance		During		During		During			Balance
	Outstanding		Period		Period		Period			Outstanding		Exercisable
Year ended December 31, 2019
Number of shares		20,000		60,000		-		(15,000	)		65,000		-
Weighted average exercise price per share		-	$	5.00		-	$	5.00		$	5.94		-
Year ended December 31, 2020
Number of shares		65,000		-		-		-			65,000		-
Weighted average exercise price per share	$	5.94		-		-		-		$	5.94		-

The Company has

417,000

of outstanding stock options under the

three

plans at

December 31, 2020.

The following table summarizes information about the outstanding and exercisable options at

December 31, 2020.

			Options Outstanding								Options Exercisable
					Weighted		Weighted						Weighted
					Average		Average						Average
Exercise			Number		Remaining		Exercise		Intrinsic		Number		Exercise		Intrinsic
Price Range			Outstanding		Contractual		Price		Value		Exercisable		Price		Value
$4.00	-	7.00		45,000		.0	$	5.00	$	0		45,000	$	5.00	$	0
$7.01	-	10.00		27,000		.0	$	8.03	$	0		27,000	$	8.03	$	0
$10.01	-	12.00		220,000		.3	$	10.81	$	0		180,000	$	11.05	$	0
$12.01	-	15.00		125,000		1.5	$	15.00	$	0		125,000	$	15.00	$	0

No

options were exercised for the year ended

December 31, 2020

and

2019.

As of

December 31, 2020,

there was

$12,000

of unrecognized compensation costs related to stock options expected to be recognized over a weighted average period of

1.00

years

Restricted Stock Awards

The following table summarizes restricted stock awards for the years ended

December 31, 2020

and

2019:

				Weighted
				Average Grant
	Shares of			Date Fair
	Restricted Stock			Value
Unvested outstanding at December 31, 2018		0		$	0
Granted		37,300		$	3.99
Vested		(35,025	)	$	3.99
Forfeited/Cancelled		(2,275	)	$	3.99
Unvested outstanding at December 31, 2019		0		$	0
Granted		30,200		$	3.74
Vested		(30,200	)	$	3.74
Forfeited/Cancelled		-			-
Unvested outstanding at December 31, 2020		0		$	0

The total fair value of shares of restricted stock awards vested for the years ended

December 31, 2020

and

2019

was approximately

$113,000

and

$140,000

respectively. The fair value of the outstanding restricted stock awards is recorded as stock compensation expense over the vesting period.

Restricted Stock Units

The following table summarizes restricted stock units for the years ended

December 31, 2020

and

December 31, 2019:

				Weighted
	Shares of			Average Grant
	Restricted			Date Fair
	Stock Units			Value
Unvested outstanding at December 31, 2018		46,063		$	8.25
Granted		10,500		$	4.15
Vested		(33,988	)	$	9.08
Forfeited/Cancelled		(-	)	$	- -
Unvested outstanding at December 31, 2019		22,575		$	4.66
Granted		-			-
Vested		(12,825	)	$	8.81
Forfeited/Cancelled		(1,000	)	$	5.45 -
Unvested outstanding at December 31, 2020		8,750		$	5.00

The total fair value of vested restricted stock units was

$91,000

and

$309,000

respectively for the years ended

December 31, 2020

and

2019.

The fair value of the outstanding restricted stock units will be recorded as stock compensation expense over the vesting period. As of

December 31, 2020,

there was

$25,000

of total unrecognized compensation costs related to restricted stock units, which is expected to be recognized over a weighted-average period of

1.0

years.

During the years ended

December 31, 2020

and

2019,

the Company recorded into selling and general administrative expense approximately

$255,000

and

$572,000

of stock-based compensation expense for the cost of employee and director services received in exchange for equity instruments based on the grant-date fair value of those instruments in accordance with the provisions of ASC

718.