6. STOCK OPTIONS

The Company has a stock incentive plan for the issuance of up to 442,750 shares of common stock. The plan provides for granting eligible participants stock options or other stock awards, as described by the plan, at prices ranging from 85% to 110% of fair market value at date of grant. Options granted expire up to seven years after the date of grant. Such options generally become exercisable over a three year period. A total of 108,739 shares of common stock are reserved for additional grants of options under the plan as of December 31, 2015.

Under the plan, the Company charged compensation cost of $21,743 and $18,415 against income in 2015 and 2014, respectively.

As of December 31, 2015, there was approximately $40,000 of unrecognized compensation cost related to unvested share-based compensation awards granted which is expected to be recognized over the next three years.

Proceeds from the exercise of stock options were $45,987 for 2014. There was no exercise of stock options in 2015.

The fair value of options granted during 2015 and 2014 was estimated using the Black-Scholes option pricing model with the following assumptions:


	2015	2014
Dividend yield	0%	0%
Expected volatility	42.3% - 42.4%	44.3%
Expected life of option	Five Years	Five Years
Risk-free interest rate	1.4% - 1.5%	1.7%
Fair value of each option on grant date	$5.43 - $6.14	$ 11.49

There were 7,250 options and 1,250 options granted during 2015 and 2014, respectively.

FASB ASC 718, Compensation — Stock Compensation specifies that initial accruals be based on the estimated number of instruments for which the requisite service is expected to be rendered. Therefore, the Company is required to incorporate a preexisting forfeiture rate based on the historical forfeiture experience and prospective actuarial analysis, estimated at 3%.

A summary of the status of the Company’s stock option plan as of December 31, 2015 and changes during the year then ended is presented below:



		Weighted
		Average
		Exercise
	Shares	Price
Outstanding at January 1, 2015	4,918	$	15.78
Granted	7,250		15.25
Exercised	—		—
Expired and forfeited	—		—
Outstanding at December 31, 2015	12,168	$	15.47
Exercisable at December 31, 2015	2,833	$	13.53

The weighted-average grant date fair value of options granted was $5.92 and $11.49 for the years ended December 31, 2015 and 2014, respectively. The total intrinsic value of stock options exercised was $107,639 for the year ended December 31, 2014. No stock options were exercised in 2015.

There were 3,000 shares of restricted stock granted and subsequently forfeited, prior to vesting, during the year ended December 31, 2014. There were no restricted stock grants issued or outstanding during the year ended December 31, 2015.

Restricted stock activity during 2014 was as follows:


		Weighted
		Average
	Shares	Price
Outstanding at January 1, 2014	—	$	—
Granted	3,000		28.25
Forfeited	3,000		28.25
Outstanding at December 31, 2014	—	$	—