Note 4 - Stock-based Compensation

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

4. STOCK-BASED COMPENSATI

ON

We have one stock option plan which permits annual stock option grants to non-employee directors with an exercise price equal to the fair market value of the shares at the date of grant. Options outstanding and exercisable were granted at a stock option price which was not less than the fair market value of our common stock on the date the option was granted and no option has a term in excess of ten years. Under this plan, no options were awarded to directors during the quarters ended March 31, 2016 and 2015 and therefore, no share based compensation expense was recorded for the quarters ended March 31, 2016 and 2015, respectively. During the three months ended March 31, 2016 and 2015, the stock option activity under our stock option plans was as follows:

	Weighted Average Exercise Price			# of shares			Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding, January 1, 2016	$	5.17			68,400
Granted		-			-
Cancelled		-			-
Exercised		-			-
Outstanding, March 31, 2016	$	5.17			68,400			5.24	$	83,933
Exercisable, March 31, 2016	$	5.17			68,400			5.24	$	83,933
Outstanding, January 1, 2015	$	5.16			72,400
Granted		-			-
Cancelled		-			-
Exercised		(4.96	)		(2,000	)
Outstanding, March 31, 2015	$	5.17			70,400			6.07	$	86,886
Exercisable, March 31, 2015	$	5.17			70,400			6.07	$	86,886

Other information pertaining to option activity during the three-month periods ended March 31, 2016 and 2015 are as follows:

	March 31, 2016		March 31, 2015
Weighted average grant-date fair value of stock options granted		N/A		N/A
Total fair value of stock options vested		N/A		N/A
Total intrinsic value of stock options exercised		N/A		$2,953

As of March 31, 2016 and 2015, there was no unrecognized compensation cost related to non-vested stock options.

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, unless otherwise determined by the committee that administers the plan.

In February 2015, our Chief Executive Officer, Chief Financial Officer and Senior Vice President were awarded restricted stock grants consisting of 9,343 shares each. In addition, four of our independent directors were awarded restricted stock grants consisting of 1,613 shares each. The grants will vest in equal annual amounts over a four-year period. The fair value of non-vested 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.

In March 2016, our interim Chief Executive Officer and interim President were awarded restricted stock grants consisting of 11,765 shares each. In addition, our five independent directors were awarded restricted stock grants consisting of 2,031 shares each. The grants will vest in equal annual amounts over a four-year period. The fair value of non-vested 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.

A summary of the activity for non-vested restricted common stock awards as of March 31, 2016 and 2015 is presented below:

	Shares			Award Fair Value
Balance, January 1, 2016		60,433		$	8.97
Granted		33,685		$	7.14
Forfeited		(8,187	)		8.97
Vested		(20,784	)		8.97
Unvested Balance, March 31, 2016		65,147		$	8.03
Balance, January 1, 2015		34,601		$	8.96
Granted		34,484		$	8.99
Forfeited		-			-
Vested		(8,652	)	$	8.96
Unvested Balance, March 31, 2015		60,433		$	8.97

Total unrecognized compensation expense for the non-vested restricted stock awards as of March 31, 2016 and 2015 totals $603,645 and $523,154, respectively As of March 31, 2016, compensation expense is

expected to be recognized in equal annual amounts over a period of four years as follows:

	2016 Award		2015 Award		2014 Award		Total
2016	$	45,095	$	58,127	$	58,130	$	161,352
2017		60,128		77,503		77,506		215,137
2018		60,128		77,503		9,688		147,319
2019		60,128		9,688		-		69,816
2020		10,021		-		-		10,021
	$	235,500	$	222,821	$	145,324	$	603,645