Quarterly report pursuant to Section 13 or 15(d)

Capital Stock, Stock Plans and Stock-Based Compensation (Tables)

v3.22.2.2
Capital Stock, Stock Plans and Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Options Valuation Assumptions

 

    Outside Director Stock Option Granted    

Employee Stock Option Granted

  
    Nine Months Ended September 30, 2022  
Weighted-average fair value per share   $ 3.61     $ 2.71  
Risk-free interest rate (1)     2.91 %     3.00 %
Expected volatility of stock (2)     55.04 %     55.72 %
Dividend yield     None       None  
Expected option life (3)     10.0 years       5.0 years  

 

(1) The risk-free interest rate is based on the U.S. Treasury yield in effect at the grant date over the expected term of the option.

 

(2) The expected volatility is based on historical volatility from our traded Common Stock over the expected term of the option.

 

(3) The expected option life is based on historical exercises and post-vesting data.
Schedule of Share-based Compensation, Allocation of Recognized Period Costs

The following table summarizes stock-based compensation recognized for the three and nine months ended September 30, 2022 and 2021 for our employee and director stock options.

 

    2022     2021     2022     2021  
    Three Months Ended     Nine Months Ended  
Stock Options   September 30,     September 30,  
    2022     2021     2022     2021  
Employee Stock Options   $ 76,000     $ 34,000     $ 248,000     $ 100,000  
Director Stock Options     29,000       28,000       62,000       49,000  
Total   $ 105,000     $ 62,000     $ 310,000     $ 149,000  
Schedule of Stock Options Roll Forward

The summary of the Company’s total stock option plans as of September 30, 2022 and September 30, 2021, and changes during the periods then ended, are presented below. The Company’s plans consist/consisted of the 2010 Stock Option Plan, the 2017 Plan and the 2003 Plan:

 

    Shares     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term (years)     Aggregate Intrinsic Value (3)  
Options outstanding January 1, 2022     1,019,400     $ 4.91               -   
Granted     94,000     $ 5.20                  
Exercised     (52,400 )   $ 4.04             $ 97,856  
Forfeited/expired     (9,600 )   $ 5.50                  
Options outstanding end of period (1)     1,051,400     $ 4.98       4.0     $ 492,939  
Options exercisable at September 30, 2022(1)     453,900     $ 3.93       2.4     $ 354,709  

 

    Shares     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term (years)     Aggregate Intrinsic Value (3)  
Options outstanding January 1, 2021     658,400     $ 3.87               -   
Granted     76,000     $ 6.05                  
Exercised     (500 )   $ 3.15             $ 2,175  
Forfeited/expired     (19,500 )   $ 6.75                  
Options outstanding end of period (1)     714,400     $ 4.02       3.6     $ 1,888,695  
Options exercisable at September 30, 2021 (2)     416,400     $ 3.91       2.9     $ 1,146,320  

 

(1) Options with exercise prices ranging from $2.79 to $7.50
(2) Options with exercise prices ranging from $2.79 to $7.29
(3) The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price.