Quarterly report pursuant to Section 13 or 15(d)

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

v3.20.1
Capital Stock, Stock Plans and Stock Based Compensation (Tables)
3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of the options granted on February 4, 2020 and January 17, 2019 as discussed above and the related assumptions used in the Black-Scholes option model used to value the options granted were as follows:

 

    Outside Director Stock Options Granted     Employee Stock Option Granted  
    February 4, 2020     January 17, 2019  
Weighted-average fair value per option   $ 4.89     $ 1.42  
Risk -free interest rate (1)     1.61 %     2.58 %
Expected volatility of stock (2)     55.83 %     48.67 %
Dividend yield     None       None  
Expected option life (3)     10.0 years       5.0 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, 2020 and 2019 for our employee and director stock options.

 

    Three Months Ended  
Stock Options   March 31,  
    2020     2019  
Employee Stock Options   $ 32,000     $ 43,000  
Director Stock Options     12,000       5,000  
Total   $ 44,000     $ 48,000  

Schedule of Stock Options Roll Forward

The summary of the Company’s total Stock Option Plans as of March 31, 2020 and March 31, 2019, and changes during the periods then ended, are presented below. The Company’s Plans consist of the 2010 and 2017 Plans and the 2003 Plan:

 

    Shares     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term (years)     Aggregate Intrinsic Value (3)  
Options outstanding January 1, 2020     681,300     $ 3.84                  
Granted     6,000       7.00                  
Exercised     (12,000 )     3.48               14,600  
Forfeited/expired     (20,000 )     3.45                  
Options outstanding end of period (1)     655,300     $ 3.88       4.0     $ 962,189  
Options exercisable at March 31, 2020(1)     306,800     $ 4.20       3.9     $ 392,614  

 

    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     105,000       3.15                  
Exercised                            
Forfeited/expired                            
Options outstanding end of period (2)     721,000     $ 4.07       4.7     $ 48,360  
Options exercisable at March 31, 2019(2)     261,333     $ 5.00       4.4     $ 10,560  

 

(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 of the option.