Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2016

The variables used in these calculations of the fair value of the options are as follows:


	For the three months ended March 31,
	2016			2015
Risk free interest rate (5 year Treasury)		1.49	%		1.52	%
Expected dividend yield		0.0	%		0.0	%
Expected term (years)		5			5
Expected volatility		40.1	%		47.1	%

Summary of Stock Option Activity

Stock option activity for the three months ended March 31, 2016 (unaudited) is summarized below:


	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (1)
Options outstanding, January 1, 2016		211,185	$	6.57		6.0
Granted		7,500		5.76
Forfeited		—		—
Exercised		—		—
Expired		—		—

Options outstanding and exercisable, March 31, 2016		218,685	$	6.54		5.9	$	69,619

(1)

The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on March 31, 2016. This amount changes based on changes in the market value of the Company’s common stock.