8. Non-Cash Share-Based Employee Compensation

3 Months Ended

Mar. 31, 2015

Notes to Financial Statements

NOTE 8 - Non-Cash Share-Based Employee Compensation

The Company has employee and non-employee director stock option programs.  Related to these programs, and in accordance with ASC Topic 718, “Compensation-Stock Compensation”, the Company recorded non-cash share-based employee compensation expense of $7 for the three months ended March 31, 2015, compared with $12 for the same period last year.  The Company considers its non-cash share-based employee compensation expenses as a component of cost of products ($0 for the three months ended March 31, 2015, compared with $0 for the same period last year) and selling, general and administrative expenses ($7 for the three months ended March 31, 2015, compared with $12 for the same period last year).  There was no non-cash share-based employee compensation expense capitalized as part of capital expenditures or inventory for the periods presented.

The Company uses the Black-Scholes-Merton option valuation model to calculate the fair value of a stock option grant.  The non-cash share-based employee compensation expense recorded in the three months ended March 31, 2015 was calculated using certain assumptions.  For a description of such assumptions, reference is made to Note 10 (Share-Based Employee Compensation) of the Company’s Consolidated Financial Statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

A summary of activity under the Company’s stock option plans during the three months ended March 31, 2015 is presented below:

As of January 1, 2015	Stock Options		Wgt. Avg. Exercise Price ($) Per Share		Wgt. Avg. Remaining Contractual Life (Years)		Wgt. Avg. Grant Date Fair Value($) Per Share		Aggregate Intrinsic Value ($)
Outstanding		414,778		3.79		-		2.29		-
Vested		361,443		3.91		-		2.55		-
Nonvested		53,335		3.00		-		0.54		-
Period activity
Issued		-		-		-		-		-
Exercised		35,000		2.73		-		1.06		-
Forfeited		-		-		-		-		-
Expired		-		-		-		-		-
As of March 31, 2015
Outstanding		379,778		3.89		3.60		2.40		1,012,895
Vested		349,778		3.93		3.55		2.60		933,095
Nonvested		30,000		3.44		4.14		0.08		79,800