Annual report pursuant to Section 13 and 15(d)

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

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

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

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

The fair value of the options granted during 2019 and 2018 and the related assumptions used in the Black-Scholes option model used to value the options granted were as follows. No options were granted to employees in 2018:

		Employee Stock
		Option Granted
		2019
Weighted-average fair value per share		$1.46
Risk -free interest rate ⁽¹⁾		1.40%-2.58%
Expected volatility of stock ⁽²⁾		48.67%-51.38%
Dividend yield		None
Expected option life ⁽³⁾		5.0 years

	Outside Director Stock Options Granted
	2019		2018
Weighted-average fair value per share		$2.27		$2.87
Risk -free interest rate ⁽¹⁾		2.08%		2.62%-2.98%
Expected volatility of stock ⁽²⁾		54.28%		55.34%-57.29%
Dividend yield		None		None
Expected option life ⁽³⁾		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 fiscal years 2019 and 2018.

	Year Ended
	2019		2018
Employee Stock Options	$	150,000	$	147,000
Director Stock Options		29,000		51,000
Total	$	179,000	$	198,000

Schedule of Stock Options Roll Forward

The summary of the Company’s total plans as of December 31, 2019 and 2018, and changes during the period then ended are presented as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽³⁾
Options outstanding January 1, 2019		616,000		$	4.23
Granted		129,500			3.24
Exercised		(32,400	)		4.10			$	93,000
Forfeited/expired		(31,800	)		8.68
Options outstanding end of period ⁽¹⁾		681,300		$	3.84		4.2	$	3,587,000
Options exercisable as of December 31, 2019⁽¹⁾		286,800		$	4.28		3.8	$	1,383,000

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽³⁾
Options outstanding January 1, 2018		624,800		$	4.42
Granted		18,000			4.22
Exercised		(10,000	)		3.65			$	8,000
Forfeited/expired		(16,800	)		11.70
Options outstanding end of period ⁽²⁾		616,000		$	4.23		4.7	$	─
Options exercisable at December 31, 2018⁽²⁾		249,333		$	5.04		4.4	$	─

(1) Options with exercise prices ranging from $2.79 to $8.40

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

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

Schedule of Non Vested Options

The summary of the Company’s nonvested options as of December 31, 2019 and changes during the period then ended are presented as follows:

				Weighted Average
				Grant-Date
	Shares			Fair Value
Non-vested options January 1, 2019		366,667		$	1.91
Granted		129,500			1.53
Vested		(90,667	)		2.02
Forfeited		(11,000	)		1.60
Non-vested options at December 31, 2019		394,500		$	1.77