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Note 8 - Stock Based Compensation
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]
8.
       
Stock Based Compensation
 
The Stanley Furniture Company, Inc.
2012
Incentive Compensation Plan (Incentive Compensation Plan) provides for the granting of performance grants, performance shares, stock options, restricted stock, restricted stock units, and stock appreciation rights to employees and certain service providers. Under this plan, the aggregate number of common shares that
may
be issued through awards of any form is
1.6
million. In addition, shares authorized under the
2008
Incentive Compensation Plan are also available for issuance under the Incentive Compensation Plan if they are unissued or subsequently expire, are forfeited or terminate unexercised. As of
December 2020,
there are
1.2
million shares remaining available for future issuance under equity compensation plans.
 
Stock Options
      
The options are issued at market value on the date of grant and have a term of
10
years from the grant date. In general, employee grants vest ratably over a
four
to
five
-year period and Director grants vest after
one
year. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the option and each vesting date. We have estimated the fair value of all stock option awards as of the date of the grant by applying the Black-Scholes pricing valuation model.
 
The application of this valuation model involves assumptions that are judgmental and sensitive in the determination of compensation expense.
No
options were granted in
2020
or
2019.
 
Stock option activity for the
two
years ended
December 31, 2020,
follows:
 
   
Number
of shares
    
Weighted-
Average
Exercise
Price
    
Weighted-
Average
Remaining Contractual
Term
(in years)
    
Aggregate
Intrinsic
Value
(in
thousands)
  
Outstanding at January 1, 2019
    
63,197
     $
7.01
      
1.8
      
 
  
Cancelled/Forfeited    
(20,914
 )   $
8.64
      
 
      
 
  
                                 
Outstanding at December 31, 2019
    
42,283
     $
6.20
      
.8
      
 
  
                                 
Cancelled/Forfeited
  
 
(36,071
)
  
$
5.54
    
 
 
 
  
 
 
 
Expired
  
 
(6,212
)
  
$
10.01
    
 
 
 
  
 
 
 
                                 
Outstanding at December 31, 2020
  
 
-
   
$
-
   
 
-
    
$
-
  
                                 
Exercisable at December 31, 2020
  
 
-
   
$
-
   
 
-
    
$
-
  
 
There were
no
stock options exercised in
2020
or
2019.
 
Restricted Stock
      
The restricted stock awards are accounted for as “non-vested equity shares” until the awards vest or are forfeited. In general, restricted stock awards for employees are time vested or performance vested and for non-employee directors vest at the end of their current term on the Board. The fair value of each share of restricted stock is the market price of our stock on the grant date. The fair value of each time vested award is amortized into compensation expense on a straight-line basis between the award date and the vesting date. Performance based awards are amortized into stock compensation expense based on the probability of meeting the performance criteria. In
2020
and
2019,
12,931
and
30,354
of restricted stock awards vested and were released, respectively.
 
The following table summarizes information about restricted stock awards for the
two
years ended
December 31, 2020:
 
   
Number
of shares
    
Weighted-
Average
Grant Date
Fair Value
  
Outstanding at January 1, 2019
    
204,575
     $
0.83
  
Vested
    
(30,354
 )    
1.81
  
Granted
    
416,666
      
0.60
  
Cancelled/Forfeited/Expired
    
(161,290
 )    
0.62
  
                 
Outstanding at December 31, 2019
    
429,597
     $
0.61
  
Vested
  
 
(12,931
)
  
 
1.16
  
Granted
  
 
-
    
 
-
  
Cancelled/Forfeited
/Expired
  
 
-
   
 
-
 
                 
Outstanding at December 31,
20
20
  
 
416,666
    
$
0.60
  
 
As of
December 31, 2020,
there was
$124,000
of total unrecognized compensation cost related to non-vested restricted stock awards, which is expected to be recognized over a weighted-average remaining vesting period of
1.5
years.