STOCK COMPENSATION

In accordance with ASC 718, the Company had no stock option expense for the three and six months ended June 30, 2018 and June 30, 2017. The Company uses the Black-Scholes option-pricing model to measure the fair value of stock options granted to employees. In 2016, the Company's Board of Directors replaced the 2008 Stock Option Plan with the 2016 Equity Incentive Plan, which does not provide for the issuance of options. Consequently, the Company cannot issue any additional options, if, and until, a new stock option plan is approved by the Board of Directors.

The following table summarizes options outstanding at June 30, 2018:



	Number of Shares		Weighted Average Exercise Price
Balance, December 31, 2017	10,333		$	1.21
Granted	—		—
Forfeited	—		—
Exercised	(10,333	)	(1.21		)

Outstanding options at June 30, 2018	—		$	—

Outstanding exercisable options at June 30, 2018	—		$	—

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 six months ended June 30, 2018 is as follows:



	Number of Shares		Weighted Average Grant Date Fair Value per Share
Balance, December 31, 2017	125,333		$	5.13
Granted	2,500		7.00
Vested	(22,167	)	(5.62		)
Forfeited	(1,333	)	(4.95		)

Non-vested, end of period	104,333		$	5.14

Awards are being amortized to expense ratably, on an annual basis, over a three year vesting term, except one grant in January 2018 for 2,500 shares of restricted stock, and one grant in January 2017 for 15,000 shares of restricted stock, which vested upon grant. There was stock compensation expense of approximately $186,000 for the six months ended June 30, 2018 and $220,000 for the six months ended June 30, 2017. The total unrecognized compensation cost as of June 30, 2018 related to the non-vested restricted stock is approximately $535,000.