Note 4 - Stock-based Compensation

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

4.

STOCK-BASED COMPENSATI

ON

We have

one

stock option plan that terminated in

March

2017.

This plan permitted 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,

2017

and

2016

and therefore,

no

share based compensation expense was recorded for the quarters ended

March

31,

2017

and

2016,

respectively. During the

three

months ended

March

31,

2017

and

2016,

the stock option activity under this expired 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, 2017	$	5.14		56,400
Granted		-		-
Cancelled		-		-
Exercised		-		-
Outstanding, March 31, 2017	$	5.14		56,400		4.24	$	172,584
Exercisable, March 31, 2017	$	5.14		56,400		4.24	$	172,584
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

As of

March

31,

2017,

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

2017,

our

five

independent directors were awarded restricted stock grants consisting of

1,801

shares each. In

March

2016,

our Chief Executive Officer and President were awarded restricted stock grants consisting of

11,765

shares each, and our

five

independent directors were awarded restricted stock grants consisting of

2,031

shares each. All of these grants vest in equal annual amounts over a

four

-year period. The fair value of these restricted stock grants is based on the market value of our common stock on the date of grant. Compensation costs for these awards is 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,

2017

and

2016

is presented below:

	Shares			Award Fair Value
Balance, January 1, 2017		62,046		$	8.24
Granted		9,005		$	8.05
Forfeited		-			-
Vested		(21,013	)		8.49
Unvested Balance, March 31, 2017		50,038		$	8.22
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

As of

March

31,

2017,

there was unrecognized compensation cost related to non-vested restricted stock awards of

$401,737

which will be recognized in each of the following years as follows:

2017	$	143,444
2018		141,816
2019		85,313
2020		28,144
2021		3,020