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)

3 Months Ended

Mar. 31, 2019

Share-based Payment Arrangement [Abstract]

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

The fair value of the options granted on January 17, 2019 and January 18, 2018 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			Outside Director Stock Options Granted
	January 17, 2019			January 18, 2018
Weighted-average fair value per option	$	1.42		$	2.55
Risk -free interest rate ⁽¹⁾		2.58	%		2.62	%
Expected volatility of stock ⁽²⁾		48.67	%		57.29	%
Dividend yield		None			None
Expected option life ⁽³⁾		5.0 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 months ended March 31, 2019 and 2018 for our employee and director stock options.

	Three Months Ended
	March 31,
Stock Options	2019		2018
Employee Stock Options	$	43,000	$	10,000
Director Stock Options		5,000		36,000
Total	$	48,000	$	46,000

Schedule of Stock Options Roll Forward

The Company’s Plans consist of the 2010 and 2017 Stock Option Plans and the 2003 Outside Directors Stock Plan:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽²⁾
Options outstanding January 1, 2019		616,000	$	4.23
Granted		105,000		3.15
Exercised		─		─
Forfeited/expired		─		─
Options outstanding end of period ⁽¹⁾		721,000	$	4.07		4.7	$	48,360
Options exercisable at March 31, 2019⁽¹⁾		261,333	$	5.00		4.4	$	10,560
Options exercisable and expected to be vested as of March 31, 2019		721,000	$	4.07		4.7	$	48,360

	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		6,000		4.05
Exercised		─		─
Forfeited/expired		─		─
Options outstanding end of period ⁽¹⁾		630,800	$	4.41		5.3	$	259,070
Options exercisable at March 31, 2018⁽¹⁾		191,467	$	6.13		4.7	$	46,970
Options exercisable and expected to be vested as of March 31, 2018		630,800	$	4.41		5.3	$	259,070

⁽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 of the option.