Quarterly report pursuant to Section 13 or 15(d)

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

v3.20.2
Capital Stock, Stock Plans and Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [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 for the nine months ended September 30, 2020 and 2019 were as follows:

 

    Employee Stock Option Granted  
    Nine Months Ended September 30,  
    2019  
Weighted-average fair value per share   $ 1.46  
Risk -free interest rate (1)     1.4%-2.58 %
Expected volatility of stock (2)     48.67%-51.38 %
Dividend yield     None  
Expected option life (3)     5.0 years  

 

    Outside Director Stock Option Granted  
    Nine Months Ended September 30,  
    2020     2019  
Weighted-average fair value per share   $ 4.66     $ 2.27  
Risk -free interest rate (1)     0.59%-1.61 %     2.08 %
Expected volatility of stock (2)     55.83%-56.68 %     54.28 %
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 the three and nine months ended September 30, 2020 and 2019 for our employee and director stock options.

 

    Three Months Ended     Nine Months Ended  
Stock Options   September 30,     September 30,  
    2020     2019     2020     2019  
Employee Stock Options   $ 34,000     $ 35,000     $ 99,000     $ 114,000  
Director Stock Options     35,000       10,000       62,000       15,000  
Total   $ 69,000     $ 45,000     $ 161,000     $ 129,000  
Schedule of Stock Options Roll Forward

The summary of the Company’s total Stock Option Plans as of September 30, 2020 and September 30, 2019, and changes during the periods then ended, are presented below. The Company’s Plans consist of the 2010 Stock Option Plan, the 2017 Plans and the 2003 Plan:

 

      Shares     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term (years)     Aggregate Intrinsic Value (4)  
Options outstanding January 1, 2020       681,300     $ 3.84                  
Granted       24,000     $ 6.92                  
Exercised       (12,500 )   $ 3.47             $ 16,060  
Forfeited/expired       (34,400 )   $ 5.52                  
Options outstanding end of period (1)       658,400     $ 3.87       3.7     $ 2,096,355  
Options exercisable at September 30, 2020(2)       340,400     $ 4.01       3.6     $ 1,036,255  

 

      Shares     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term (years)     Aggregate Intrinsic Value (4)  
Options outstanding January 1, 2019       616,000     $ 4.23                  
Granted       129,500     $ 3.24                  
Exercised           $                  
Forfeited/expired       (31,800 )   $ 8.68                  
Options outstanding end of period (3)       713,700     $ 3.85       4.4     $ 611,942  
Options exercisable as of September 30, 2019(3)       299,200     $ 4.30       4.0     $ 188,082  

 

(1) Options with exercise prices ranging from $2.79 to $7.29

(2) Options with exercise prices ranging from $2.79 to $7.05

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

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