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, 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.