Note 4 - Capital Stock, Stock Plans and Stock-based Compensation
|6 Months Ended|
Jun. 30, 2017
|Notes to Financial Statements|
|Disclosure of Compensation Related Costs, Share-based Payments [Text Block]||
The Company has certain stock option plans under which it awards incentive and non-qualified stock options to employees, officers, and outside directors.
January 13, 2017,the Company granted
6,000non-qualified stock options (“NQSOs”) from the Company’s
2003Outside Directors Stock Plan to a new director elected by the Company’s Board of Directors (“Board”) to fill the vacancy left by Mr. Jack Lahav who retired from the Board in
October 2016.The options granted were for a contractual term of
tenyears with a vesting period of
sixmonths. The exercise price of the NQSO was
$3.79per share, which was equal to our closing stock price the day preceding the grant date, pursuant to the
2003Outside Directors Stock Plan.
May 15, 2016,the Company granted
50,000incentive stock options (“ISOs”) from the Company’s
2010Stock Option Plan to our Executive Vice President (“EVP”)/Chief Operating Officer (“COO”). The ISOs granted were for a contractual term of
thirdyearly vesting over a
threeyear period. The exercise price of the ISO was
$3.97per share, which was equal to the fair market value of the Company’s Common Stock on the date of grant.
The summary of the Company’s total Stock Option Plans as of
June 30, 2017,as compared to
June 30, 2016,and changes during the periods then ended, are presented below. The Company’s Plans consist of the
2010Stock Option Plan and the
2003Outside Directors Stock Plan:
The Company estimates the fair value of stock options using the Black-Scholes valuation model. Assumptions used to estimate the fair value of stock options granted include the exercise price of the award, the expected term, the expected volatility of the Company’s stock over the option’s expected term, the risk-free interest rate over the option’s expected term, and the expected annual dividend yield.
The following table summarizes stock-based compensation recognized for the
June 30, 2017and
2016for our employee and director stock options.
June 30, 2017,the Company has approximately
$64,000of total unrecognized compensation cost related to unvested options, of which
$18,000is expected to be recognized in remaining
2018,with the remaining
June 30, 2017,the Company issued a total of
28,964shares of its common stock under the
2003Outside Directors Stock Plan to its outside directors as compensation for serving on our Board. The Company has recorded approximately
$110,000in compensation expenses for the
June 30, 2017 (included in selling, general and administration expenses) in connection with the issuance of shares of its common stock to outside directors.
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.
Reference 1: http://www.xbrl.org/2003/role/presentationRef