Note 10 - Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

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

10.

Stockholders’ Equity

Stock Options

– Incentive Stock Plans

We sponsor an incentive stock plan (the

“2014

Plan”) allowing for a maximum of

142,857

shares to be granted in the form of either incentive stock options, non-qualified stock options, restricted stock awards, or unrestricted stock awards. Our employees, directors, advisors, and consultants are eligible to receive the grants. This plan has been approved by the stockholders of the Company. The Compensation Committee of the Board of Directors administers the plan.

The

2014

Plan provides that options

may

be issued under the Plan at an option price

not

less than fair market value of the stock at the time the option is granted. Under the plan, restricted stock

may

be granted at

no

cost to the grantee. The grantees are entitled to dividends and voting rights for their respective shares. Restrictions limit the sale or transfer of these shares during the requisite service period. In addition, the committee

may

grant or sell unrestricted stock at a purchase price to be determined by the committee. Vesting terms and restrictions, if applicable, under the plan, are set by the committee and will be

10

years or less. The

2014

Plan expires in

2024.

In

May 2017,

the Company’s shareholders voted to approve a

2017

Incentive Stock Plan (

2017

Plan) which authorizes the issuance of up to

200,000

shares of our common stock in various forms of stock options and/or stock awards. The

2017

Plan will

not

become effective until registered with the Securities and Exchange Commission.

A summary of our stock option activity and related information for the years ended

December 31

follows:

	2019				2018
	Options		Weighted Avg. Exercise Price		Options			Weighted Avg. Exercise Price
Outstanding beginning of the year		81,426	$	7.77		140,424		$	7.85
Granted		-				-
Exercised		-				-
Expired and forfeited		-				(58,998	)		7.96
Outstanding at end of year		81,426	$	7.77		81,426		$	7.77
Exercisable at end of year		24,426	$	7.77		14,655		$	7.77

Compensation cost for the stock option plan was approximately

$19,000

(

$19,000

net of tax) and

$21,000

(

$21,000

net of tax) for the years ended

December 31, 2019

and

2018,

respectively, and has been recorded in selling, general, and administrative expense. All stock options issued and outstanding as of

December 31, 2019

will expire in

March 2020.

At

December 31, 2019,

the estimated total remaining unrecognized compensation cost related to the non-vested portion of time vesting stock options was

zero

and the aggregate intrinsic value of stock options outstanding and currently exercisable was

zero

.

Distributor Stock Purchase Plan

In

July 2009,

we established a Distributor Stock Purchase Plan (

2009

Plan) which replaced a similar plan which had expired.

The

2009

Distributor Stock Purchase Plan was established with a

ten

-year life. As a result, there will be

no

further grants from this Plan. Upon exercise, forfeiture or expiration of all outstanding warrants, the Plan will terminate. At

December 31, 2019,

there were

2,371

warrants outstanding at exercise prices ranging from

$4.24

to

$4.77.

Remaining warrants will expire

no

later than

December 31, 2021.

We record expense for warrants granted to distributors under the fair value method. Total expense for the warrants was

$2,000

and

$3,600

in

2019

and

2018,

respectively. The intrinsic value for stock warrants outstanding at

December 31, 2019

was

zero

.