NOTE 9 – STOCK-BASED COMPENSATION

We currently have stock-based compensation plans in place for our directors, officers, employees, consultants and advisors. Under the terms of these plans we may grant restricted shares and stock options for the purchase of our common stock. The stock-based compensation is granted under terms determined by our Compensation Committee. Our standard stock option grants have a maximum term of 10 years, generally vest over periods ranging between one and five years, and are granted with an exercise price equal to the fair market value of the common stock on the date of grant. Restricted stock is valued at the market value of the common stock on the date of grant and generally vests over periods of three to five years. All dividends paid on restricted stock, whether vested or unvested, are paid to the shareholder.

Information regarding our stock option plans for the three months ended March 31, 2020 is as follows:


		Weighted
		Average		Weighted
		Exercise		Average	Aggregate
	Number of	Price per		Contractual	Intrinsic
	Shares	Share		Term	Value
Outstanding, December 31, 2018	69,123	$	11.10
Options granted	—		—
Options expired	(5,077)		11.37
Options exercised	(14,304)		10.76
Outstanding, December 31, 2019	49,742		11.17
Outstanding, March 31, 2020	49,742	$	11.17	0.17	$	290,041
Exercisable, March 31, 2020	45,698	$	11.02	5.10	$	273,178

During the three months ended March 31, 2020 and 2019, we expensed $4 thousand and $12 thousand, respectively, in stock-based compensation under stock option awards.

There were no options granted during the three and three months ended March 31, 2020 and 2019. Expected future expense relating to the unvested options outstanding as of March 31, 2020 is $12 thousand over a weighted average period of 0.7 years. Upon exercise of vested options, management expects to draw on common stock as the source of the shares.

The summary of changes in unvested restricted stock awards for the three months ended March 31, 2020, is as follows:


	2020
		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
Unvested restricted stock, beginning of year	112,673	$	23.60
Granted (vesting period between 3-5 years)	59,939		24.51
Forfeited	(134)		24.62
Vested	(26,683)		23.52
Unvested restricted stock, end of period	145,795	$	23.97

During the three months ended March 31, 2020 and 2019, we expensed $348 thousand and $178 thousand, respectively, in stock-based compensation under restricted stock awards.

At March 31, 2020, unrecognized compensation expense for unvested restricted stock was $2.8 million, which is expected to be recognized over an average period of 3.9 years.