Stock Option Plans

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 7. Stock Option Plans

On June 10, 2011, shareholders approved the SCI Engineered Materials, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). The Company adopted the 2011 Plan as incentive to key employees, directors and consultants under which options to purchase up to 250,000 shares of the Company’s common stock may be granted, subject to the execution of stock option agreements. Incentive stock options may be granted to key employees of the Company and non-statutory options may be granted to directors who are not employees and to consultants and advisors who render services to the Company. Options may be exercised for periods up to 10 years from the date of grant at prices not less than 100% of fair market value on the date of grant. As of December 31, 2018, there were 41,719 stock options outstanding from the 2011 Plan which expire in May 2028.

On June 9, 2006, shareholders approved the Superconductive Components, Inc. 2006 Stock Incentive Plan. The Company adopted the 2006 Plan as incentive to key employees, directors and consultants under which options to purchase up to 600,000 shares of the Company’s common stock may be granted, subject to the execution of stock option agreements. Incentive stock options may be granted to key employees of the Company and non-statutory options may be granted to directors who are not employees and to consultants and advisors who render services to the Company. Options may be exercised for periods up to 10 years from the date of grant at prices not less than 100% of fair market value on the date of grant. As of December 31, 2018, there were 365,847 stock options outstanding from the 2006 Plan which expire at various dates through November 2024.

The cumulative status at December 31, 2018 and 2017, of options granted and outstanding, as well as options which became exercisable in connection with the Stock Option Plans is summarized as follows:

Employee Stock Options

	Stock Options			Weighted Average Exercise  Price		Weighted  Average  Contractual  Term (yrs)		Aggregate  Intrinsic Value
Outstanding at January 1, 2017		397,671		$	4.39
Exercised		(16,224	)		0.84
Outstanding at December 31, 2017		381,447		$	4.54
Granted		41,719			1.25
Exercised		(21,225	)		0.84
Expired		(5,000	)		3.10
Outstanding at December 31, 2018		396,941		$	4.41		2.2	$	-
Options exercisable at December 31, 2018		329,988		$	5.09		1.0	$	-
Options exercisable at December 31, 2017		303,829		$	5.03		2.0	$	-
Options expected to vest		66,953		$	1.10		8.0	$	-

There were no Non-Employee Director Stock Options outstanding at December 31, 2018 and 2017.

Information related to the weighted average fair value of nonvested stock options for the year ended December 31, 2018 is as follows:

	Stock Options			Weighted Average  Exercise Price
Employee Stock Options
Nonvested  options at January 1, 2018		77,618		$	2.64
Granted		41,719			1.25
Vested		(52,384	)		3.51
Nonvested options at December 31, 2018		66,953		$	1.10

Exercise prices range from $0.84 to $6.00 for options at December 31, 2018. The weighted average option price for all options outstanding was $4.41 with a weighted average remaining contractual life of 2.2 years at December 31, 2018. The weighted average option price for all options outstanding was $4.54 with a weighted average remaining contractual life of 2.6 years at December 31, 2017.

The weighted average fair value at date of grant for options granted during 2018 was $1.25, and was established using the Black-Scholes option valuation method with the following weighted average assumptions:

Expected life in years	5.0
Interest rate	2.7	%
Volatility	62.3	%
Dividend yield	0	%