Note 10 - Stockholders' Equity

12 Months Ended

Dec. 31, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

10. STOCKHOLDERS' EQUITY

a) Stock Option Plan

In connection with its 2007 Director Non-Qualified Stock Option Plan for non-employee directors, there are outstanding options to purchase our common stock. The plan provides for the granting of non-qualified options at the discretion of the Compensation Committee of the Board of Directors. Options are granted at the fair market value of the underlying common stock at the date of grant and vest after six months. We have reserved 100,000 shares of common stock for issuance under this plan.

We had two other stock options plans from 1995 which provided stock option grants to officers, key employees, and non-employee directors. These plans expired in 2005. The expiration of the plans had no effect on the options previously granted.

All options expire ten years from date of grant and are exercisable at any time after vesting. Of the 100,000 shares available for issuance, there are 21,400 un-optioned shares available for future grants.

A summary of stock option transactions for the years ended December 31, 2014, 2013, and 2012, is as follows:

	2014					2013					2012
				Weighted					Weighted					Weighted
				Average					Average					Average
	Option			Exercise		Option			Exercise		Option			Exercise
	Shares			Price		Shares			Price		Shares			Price
Outstanding at January 1		84,600		$	5.04		121,600		$	4.53		115,600		$	4.40
Granted		-			-		12,000			6.87		12,000			5.27
Forfeited or expired		-			-		-			-		-			-
Exchanged		-			-		-			-		-			-
Exercised		(12,200	)		4.32		(49,000	)		4.23		(6,000	)		3.50
Outstanding at December 31		72,400		$	5.16		84,600		$	5.04		121,600		$	4.53
Exercisable at end of year		72,400		$	5.16		84,600		$	5.04		121,600		$	4.53
Weighted-average fair value of options granted during year		n/a				$	0.97				$	0.83

The following table summarizes outstanding options into groups based upon exercise price ranges at December 31, 2014:

			Options Outstanding						Options Exercisable
					Weighted		Weighted				Weighted		Weighted
					Average		Average				Average		Average
			Option		Exercise		Maturity		Option		Exercise		Maturity
Exercise Price Range			Shares		Price		(Years)		Shares		Price		(Years)
$4.27	to	$4.41		23,400	$	4.39		5.76		23,400	$	4.39		5.76
$4.80	to	$4.96		16,000		4.84		4.86		16,000		4.84		4.86
$5.30	to	$6.87		33,000		5.86		7.10		33,000		5.86		7.10
				72,400	$	5.16		6.17		72,400	$	5.16		6.17

We have a restricted stock plan that was adopted by our Board of Directors in January 2013 and approved by our stockholders in June 2013. The plan reserves up to 300,000 shares of our common stock for restricted stock awards to our executive officers, non-employee directors, and other key employees. Awards granted under the plan may be stock awards or performance awards, and may be subject to a graded vesting schedule with a minimum vesting period of four years. No awards were made in 2013.

In February 2014, our Chief Executive Officer, Chief Financial Officer, and Senior Vice President were awarded restricted stock grants consisting of 9,375 shares each. In addition, four of our independent directors were awarded restricted stock grants consisting of 1,619 shares each. The grants will vest in equal annual amounts over a four-year period. The fair value of nonvested restricted common stock awards is the market value of our common stock on the date of grant. Compensation costs for these awards will be recognized on a straight-line basis over the four year vesting period.

	Shares		Grant Fair Value
Balance, January 1, 2014		-		-
Granted		34,601	$	8.96
Forfeited		-		-
Vested		-		-
Balance, December 31, 2014		34,601	$	8.96

Of the 300,000 shares available for issuance, there are 265,399 shares available for future awards.

b) Cash Dividend

In February 2012, our Board of Directors authorized a $0.25 per share special one-time cash dividend that was paid to stockholders of record at the close of business on March 1, 2012. The cash dividend, totaling approximately $2.5 million, was paid to stockholders on April 2, 2012.

On June 9, 2014, our Board of Directors authorized a $0.25 per share special one-time cash dividend to be paid to stockholders of record at the close of business on July 7, 2014. The cash dividend, totaling approximately $2.5 million, was paid to stockholders on August 8, 2014.

Our Board will determine future cash dividends after giving consideration to our then existing levels of profit and cash flow, capital requirements, current and forecasted liquidity, as well as financial and other business conditions existing at the time.

c) Stockholder Rights Plan

On June 6, 2013, our Board of Directors authorized and declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of our common stock, par value $0.0024 per share, to stockholders of record at the close of business on June 16, 2013. Each Right entitles the registered holder to purchase from us one one-thousandth of a newly created series of preferred stock at an exercise price of $30.00 per right. The Rights are exercisable in the event any person or group acquires 20% or more of our outstanding common stock (an “Aquiring Person”), or commences a tender offer or exchange offer that would result in such person becoming an Acquiring Person. An exception is included in the Rights Plan in order to ensure that certain owners are not by virtue of their share ownership automatically deemed to be an Acquiring Person upon adoption of the plan unless any such owner subsequently accrues additional shares of our common stock and after giving effect to such acquisition owns 20% or more of our outstanding common stock. The Rights will expire at 5:00 P.M. Eastern on June 6, 2016, unless such date is advanced or extended or unless the Rights are earlier redeemed or exchanged by our Board.