Note 4 - Stock-based Compensation

9 Months Ended

Sep. 30, 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

nine

months ended

September 30, 2017

or

2016

and therefore,

no

share based compensation expense was recorded for the

nine

months ended

September 30, 2017

or

2016.

During the

nine

months ended

September 30, 2017

and

2016,

the stock option activity under this now expired stock option plan was as follows:

	Weighted Average Exercise Price			# of shares			Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding, January 1, 201 7	$	5.14			56,400
Granted		-			-
Cancelled		5.14			(12,000	)
Exercised		5.14			(44,400	)		3.99	$	155,606
Outstanding, Sept 30, 2017	$	-			-			-	$	-
Exercisable, Sept 30, 2017	$	-			-			-	$	-
Outstanding, January 1, 201 6	$	5.17			68,400
Granted		-			-
Cancelled		(5.30	)		(12,000	)
Exercised		-			-
Outstanding, Sept 30, 2016	$	6.27			56,400			4.47	$	70,545
Exercisable, Sept 30, 2016	$	6.27			56,400			4.47	$	70,545

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.

On

June 6, 2017,

vesting for certain restricted stock grants to

three

of our independent directors whose Board service had ended was accelerated which resulted in

$104,000

of compensation expense that was recognized during the

nine

months ended

September 30, 2017.

A summary of the activity for non

-vested restricted common stock awards as of

September 30, 2017

and

2016

is presented below:

	Shares			Award Fair Value
Balance, January 1, 201 7		62,046		$	8.24
Granted		9,005			8.05
Forfeited		(5,403	)		8.05
Vested		(28,847	)		7.84
Unvested Balance, September 30, 2017		36,801		$	7.93
Balance, January 1, 201 6		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

As of S

eptember

30,

2017,

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

$208,533

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

2017	$34,219
2018	100,127
2019	58,126
2020	14,853
2021	1,208