Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Capital Stock, Stock Plans and Stock-based Compensation

Note 4 - Capital Stock, Stock Plans and Stock-based Compensation

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

4.	Capital Stock, Stock Plans and Stock Based Compensation

The Company has certain stock option plans under which it awards incentive and non-qualified stock options to employees, officers, and outside directors. No stock options were granted during the first quarter of 2016 and 2015.

The summary of the Company’s total Stock Option Plans as of March 31, 2016, as compared to March 31, 2015, and changes during the periods then ended, are presented below. The Company’s Plans consist of the 2010 Stock Option Plan and the 2003 Outside Directors Stock Plan (“2003 Plan”):

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (2)
Options outstanding January 1, 2016		218,200	$	7.65
Granted		─		─	
Exercised		─		─
Forfeited/expired		─		─	
Options outstanding end of period (1)		218,200	$	7.65		4.6	$	13,980
Options exercisable at March 31, 2016 (1)		181,533	$	8.18		4.6	$	13,980
Options exercisable and expected to be vested at March 31, 2016		212,333	$	7.72		4.6	$	13,980

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (2)
Options outstanding Janury 1, 2015		239,023		$	7.81
Granted		─			─	
Exercised		(1,257	)		2.79			$	2,043
Forfeited/expired		(15,000	)		7.10	
Options outstanding end of period (1)		222,766			7.89		5.0	$	22,616
Options exercisable at March 31, 2015 (1)		167,766		$	8.84		4.9	$	22,616
Options exercisable and expected to be vested at March 31, 2015		213,966		$	8.01		5.0	$	22,616

(1)

Options with exercise prices ranging from $2.79 to $14.75

(2)

The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price

of the option.

The following table summarizes stock-based compensation recognized for the three months ended March 31, 2016 and 2015 for our employee and director stock options.

Stock Options	Three Months Ended March 31,
	2016		2015
Employee Stock Options	$	13,000	$	13,000
Director Stock Options		15,000		20,000
Total	$	28,000	$	33,000

As of March 31, 2016, the Company has approximately $59,000 of total unrecognized compensation cost related to unvested options, of which $40,000 is expected to be recognized in remaining 2016, with the remaining $19,000 in 2017.

During the three months ended March 31, 2016, the Company issued a total of 14,354 shares of our Common Stock under the 2003 Plan to our outside directors as compensation for serving on our Board of Directors. The Company has recorded approximately $60,000 in compensation expenses (included in selling, general and administration expenses) in connection with the issuance of these shares of our Common Stock to our outside directors.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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