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Note 9 - Stock-based Compensation Expense

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Text Block]

NOTE 9: STOCK-BASED COMPENSATION EXPENSE

The Company recorded, as part of general and administrative expense, $62,000 and $113,000 during the three and six months ended June 30, 2021, respectively, and during the three and six months ended June 30, 2020, $69,000 and $141,000, respectively, for the cost of employee and director services received in exchange for equity instruments based on the grant-date fair value of those instruments.

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, 2021 through June 30, 2021 are as follows:

2001 Non-Qualified Stock Option Plan

Beginning

Granted

Exercised

Canceled

Ending

Balance

During

During

During

Balance

Outstanding

Period

Period

Period

Outstanding

Exercisable

Number of shares
7,000 - - (7,000 ) - -

Weighted average exercise price per share
$ 7.90 - - $ 7.90 - -

2007 Share Incentive Plan
	Beginning		Granted		Exercised		Canceled		Ending
	Balance		During		During		During		Balance
	Outstanding		Period		Period		Period		Outstanding		Exercisable

Number of shares		345,000		-		-		-		345,000		325,000
Weighted average exercise price per share	$	12.33		-		-		-	$	12.33	$	12.46

2016 Share Incentive Plan
	Beginning		Granted		Exercised		Canceled		Ending
	Balance		During		During		During		Balance
	Outstanding		Period		Period		Period		Outstanding		Exercisable

Number of shares		65,000		150,000		-		-		215,000		65,000
Weighted average exercise price per share	$	5.94	$	4.26		-		-	$	4.76	$	5.94

For the six months ended June 30, 2021, the Company granted 150,000 stock options, vesting 25% per year over four years, with a ten-year life. The Company determined the fair value of stock options granted during the six months ended June 30, 2021 is based upon assumptions as provided below.

Stock Price	$	4.26
Exercise Price	$	4.26
Dividend yield		0	%
Expected volatility		67	%
Risk-Free interest rate		1.35	%
Expected life (in years)		6.00

The Company has a total of 560,000 outstanding stock options, of which 390,000 were exercisable under the three plans at June 30, 2021.

The following table summarizes information about the outstanding and exercisable options at June 30, 2021.

			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		195,000		9.8	$	4.43	$	36,000		45,000	$	5.00	$	0
$7.01	-	10.00		20,000		7.0	$	8.07	$	0		20,000	$	8.07	$	0
$10.01	-	12.00		220,000		3.7	$	10.81	$	0		200,000	$	10.87	$	0
$12.01	-	15.00		125,000		1.0	$	15.00	$	0		125,000	$	15.00	$	0

No options were exercised during the six months ended June 30, 2021. As of June 30, 2021, there was $385,960 of unrecognized compensation costs related to stock options expected to be recognized over a weighted average period of 3.9 years.

Restricted Stock Awards

The following table summarizes restricted stock awards for the six months ended June 30, 2021:

				Weighted
	Shares of			Average Grant
	Restricted			Date Fair
	Stock			Value
Unvested outstanding at December 31, 2020		0		$	0
Granted		42,800		$	4.65
Vested		0		$	0
Forfeited/Cancelled		(4,746	)	$	4.65
Unvested outstanding at June 30, 2021		38,054		$	4.65

The fair value of the outstanding restricted stock awards will be recorded as stock compensation expense over the vesting period. As of June 30, 2021, there was $89,000 of total unrecognized compensation costs related to restricted stock awards, which is expected to be recognized over a weighted-average period of .5 years.

Restricted Stock Units

The following table summarizes activity related to outstanding restricted stock units for the six months ended June 30, 2021:

				Weighted
	Shares of			Average Grant
	Restricted			Date Fair
	Stock Units			Value
Unvested outstanding at December 31, 2020		8,750		$	5.00
Granted		2,333		$	5.36
Vested		(5,583	)	$	5.32
Forfeited/Cancelled		(-	)	$	- -

Unvested outstanding at June 30, 2021		5,500		$	4.83

The total fair value of vested restricted stock units was $29,700 for the six months ended June 30, 2021.

The fair value of the outstanding restricted stock units will be recorded as stock compensation expense over the vesting period. As of June 30, 2021, there was $14,000 of total unrecognized compensation costs related to restricted stock units, which is expected to be recognized over a weighted-average period of .7 years.