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)

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.