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Note 4 - Stock-based Compensation
9 Months Ended
Sep. 30, 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 nine months ended September 30, 2016 and 2015 and therefore, no share based compensation expense was recorded for those periods.
 
During the nine months ended September 30, 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
    (5.30 )     (12,000 )                
Exercised
    -       -                  
Outstanding, September 30, 2016
  $ 6.27       56,400       4.47     $ 70,545  
Exercisable, September 30, 2016
  $ 6.27       56,400       4.47     $ 70,545  
                                 
Outstanding, January 1, 2015
  $ 5.16       72,400                  
Granted
    -       -                  
Cancelled
    (4.96 )     (2,000 )                
Exercised
    (4.96 )     (2,000 )                
Outstanding, September 30, 2015
  $ 5.17       68,400       5.70     $ 83,933  
Exercisable, September 30, 2015
  $ 5.17       68,400       5.70     $ 83,933  
 
Other information pertaining to option activity during the nine-month periods ended September 30, 2016 and 2015 are as follows:
 
 
 
September
30,
2016
   
September
30,
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  
 
There was no unrecognized compensation cost pertaining to stock option grants as of September 30, 2016 and 2015.
 
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, net of forfeitures, will be recognized on a straight-line basis over the four year vesting period.
 
In March 2016, our Chief Executive Officer and 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 September 30, 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, September 30, 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, September 30, 2015
    60,433     $ 8.97  
 
Total unrecognized compensation expense for the non-vested restricted stock awards as of September 30, 2016 and 2015 totals $417,326 and, $445,650, respectively. As of September 30, 2016, compensation expense is ex
pected to be recognized as follows:
 
   
2016 Award
   
2015 Award
   
2014 Award
   
Total
 
2016
  $ 15,032     $ 14,126     $ 14,127     $ 43,285  
2017
    60,128       56,502       56,506       173,136  
2018
    60,128       56,502       7,063       123,693  
2019
    60,128       7,063       -       67,191  
2020
    10,021       -       -       10,021  
    $ 205,437     $ 134,193     $ 77,696     $ 417,326