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)

6 Months Ended

Jun. 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 on January 18, 2018 and January 13, 2017 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
	January 18, 2018			January 13, 2017
Weighted-average fair value per option	$	2.55		$	2.63
Risk -free interest rate ⁽¹⁾		2.62	%		2.40	%
Expected volatility of stock ⁽²⁾		57.29	%		56.32	%
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 six months ended June 30, 2018 and 2017 for our employee and director stock options.

	Three Months Ended				Six Months Ended
Stock Options	June 30,				June 30,
	2018		2017		2018		2017
Employee Stock Options	$	37,000	$	11,000	$	73,000	$	21,000
Director Stock Options		8,000		8,000		18,000		20,000
Total	$	45,000	$	19,000	$	91,000	$	41,000

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 ⁽³⁾
Options outstanding January 1, 2018		624,800		$	4.42
Granted		6,000			4.05
Exercised		(10,000	)		3.65
Forfeited/expired		─			─
Options outstanding end of period ⁽¹⁾		620,800		$	4.43		5.0	$	435,870
Options exercisable at June 30, 2018⁽¹⁾		198,133		$	6.07		4.3	$	78,836
Options exercisable and expected to be vested at June 30, 2018		620,800		$	4.43		5.0	$	435,870

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽³⁾
Options outstanding January 1, 2017		247,200		$	6.69
Granted		6,000			3.79
Exercised		─			─
Forfeited/expired		(30,000	)		5.00
Options outstanding end of period ⁽²⁾		223,200		$	6.84		4.5	$	13,080
Options exercisable at June 30, 2017⁽²⁾		180,534		$	7.51		4.3	$	13,080
Options exercisable and expected to be vested at June 30, 2017		223,200		$	6.84		4.5	$	13,080

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

⁽²⁾Options with exercise prices ranging from $2.79 to $14.75

⁽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.