EQUITY AND STOCK COMPENSATION PLANS (Tables)


	Years ended
	December 31,
	2019		2018
Cost of services	$	18	$	25
Research and development		117		101
Selling and marketing		57		13
General and administrative		500		441
Stock-based compensation expense	$	692	$	580


	Year Ended
	December 31, 2019
Expected term (1)	6.08-6.18 years
Expected volatility factor (2)	35-46	%
Risk-free interest rate (3)	1.51-1.66	%
Expected annual dividend yield	n/a

(1)

The expected term for each grant was determined based on the simplified method.

(2)

The expected volatility for each grant is estimated based on an average of historical volatility over the expected term of the stock options.

(3)

The risk-free interest rate for each grant is based on the U.S. Treasury yield curve in effect at the time of grant for a period equal to the expected term of the stock option.


	2019			2018
		Weighted			Weighted
		Average			Average
		Exercise			Exercise
	Shares	Price		Shares	Price
Outstanding at beginning of year	18,000	$	2.52	28,000	$	2.97
Granted	435,000	$	6.00	—		—
Exercised	18,000	$	2.52	—		—
Forfeited or cancelled	—		—	(10,000)		3.77
Outstanding at end of year	435,000	$	6.00	18,000	$	2.52

Exercisable at year end	16,248	$	6.00	18,000	$	2.52

The following table summarizes the stock options outstanding at December 31, 2019:


	Options Outstanding				Options Exercisable
		Weighted		Weighted Average		Weighted
		Average		Remaining		Average
Exercise Price		Exercise		Contractual		Exercise
Range	Number	Price		Term (in years)	Number	Price
$4 to $5	108,750	$	4.50	9.7585	4,062	$	4.50
$5 to $6	108,750	$	5.50	9.7585	4,062	$	5.50
$6 to $7	108,750	$	6.50	9.7585	4,062	$	6.50
$7 to $8	108,750	$	7.50	9.7585	4,062	$	7.50
	435,000	$	6.00	9.7585	16,248	$	6.00