Quarterly report pursuant to Section 13 or 15(d)

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

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

9 Months Ended

Sep. 30, 2018

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

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of the options granted as discussed above and the related assumptions used in the Black-Scholes option model used to value the options granted were as follows:

	Employee Stock Option Granted
	July 27, 2017
Weighted-average fair value per share	$	1.88
Risk -free interest rate ⁽¹⁾		1.98	%
Expected volatility of stock ⁽²⁾		53.15	%
Dividend yield		None
Expected option life ⁽³⁾		6.0 years

	Outside Director Stock Options Granted
	January 18, 2018			July 26, 2018			January 13, 2017			July 27, 2017
Weighted-average fair value per share	$	2.55			3.02		$	2.63		$	2.48
Risk -free interest rate ⁽¹⁾		2.62	%		2.98	%		2.40	%		2.32	%
Expected volatility of stock ⁽²⁾		57.29	%		55.34	%		56.32	%		57.21	%
Dividend yield		None			None			None			None
Expected option life ⁽³⁾		10.0 years			10.0 years			10.0 years			10.0 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 Employee Service 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, 2018 and 2017 for our employee and director stock options.

	Three Months Ended				Nine Months Ended
Stock Options	September 30,				September 30,
	2018		2017		2018		2017
Employee Stock Options	$	37,000	$	22,000	$	110,000	$	43,000
Director Stock Options		15,000		12,000		33,000		32,000
Total	$	52,000	$	34,000	$	143,000	$	75,000

Schedule of Stock Options Roll Forward

The summary of the Company’s total Stock Option Plans as of September 30, 2018 and September 30, 2017, and changes during the periods then ended, are presented below. The Company’s Plans consist of the 2017 Stock Plan and the 2003 Plan:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽²⁾
Options outstanding January 1, 2018		624,800		$	4.42
Granted		18,000			4.22
Exercised		(10,000	)		3.65
Forfeited/expired		(16,800	)		11.70
Options outstanding end of period ⁽¹⁾		616,000		$	4.23		5.0	$	279,630
Options exercisable at September 30, 2018⁽¹⁾		227,333		$	5.17		4.6	$	72,296
Options exercisable and expected to be vested at September 30, 2018		616,000		$	4.23		5.0	$	279,630

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽²⁾
Options outstanding January 1, 2017		247,200		$	6.69
Granted		318,000			3.65
Exercised		─			─
Forfeited/expired		(50,400	)		8.95
Options outstanding end of period ⁽¹⁾		514,800		$	4.59		5.7	$	65,490
Options exercisable at September 30, 2017⁽¹⁾		169,467		$	6.45		4.8	$	17,490
Options exercisable and expected to be vested at September 30, 2017		514,800		$	4.59		5.7	$	65,490

⁽¹⁾	Options with exercise prices ranging from $2.79 to $13.35

⁽²⁾	The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price