STOCK COMPENSATION

In accordance with ASC 718, the Company had no stock option expense for the three months ended March 31, 2017 and March 31, 2016 . The Company uses the Black-Scholes option-pricing model to measure the fair value of stock options granted to employees. The Company did not not issue any stock options for the three months ended March 31, 2017 or the three months ended March 31, 2016.

The following table summarized options outstanding at March 31, 2017



	Number of Shares		Weighted Average Exercise Price
Balance, December 31, 2016	68,133		$	1.79
Granted	—		—
Forfeited	—		—
Exercised	(32,800	)	(1.90		)

Outstanding options at March 31, 2017	35,333		$	1.69

Outstanding exercisable options at March 31, 2017	35,333		$	1.69

The intrinsic value of outstanding and exercisable options at March 31, 2017 was approximately $170,000.

The fair value of restricted stock awards is estimated to be the market price of the Company's common stock at the close of the date of grant. Restricted stock activity during the three months ended March 31, 2017 are as follows:



	Number of Shares		Weighted Average Grant Date Fair Value per Share
Balance, December 31, 2016	103,000		$	4.95
Granted	74,000		5.45
Vested	(15,000	)	(5.45		)
Forfeited	—		—

Non-vested, end of period	162,000		$	5.13

Awards are being amortized to expense ratably, on an annual basis, over a three year vesting term, except one grant in January 2017 for 15,000 shares of restricted stock, which vested upon grant. There was stock compensation expense of $151,032 for the three months ended March 31, 2017 and no expense for the three months ended March 31, 2016, as the grants were made in December 2016 and January 2017. The total unrecognized compensation cost as of March 31, 2017 related to the non-vested restricted stock is $762,117.