8. Non-Cash Share-Based Employee Compensation

6 Months Ended

Jun. 30, 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 $9 and $16 for the three and six months ended June 30, 2015, respectively, compared with $13 and $25, respectively, for the same periods 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 June 30, 2015, as well as $0 for the same period last year) and selling, general and administrative expenses ($9 and $16 for the three and six months ended June 30, 2015, respectively, compared with $13 and $25 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 and six months ended June 30, 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 six months ended June 30, 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		25,000		5.70		-		2.05		-
Exercised		87,002		3.16		-		1.31		-
Forfeited		-		-		-		-		-
Expired		-		-		-		-		-
As of June 30, 2015
Outstanding		352,776		4.08		3.60		2.51		530,461
Vested		327,776		3.96		3.50		2.55		530,461
Nonvested		25,000		5.70		4.89		2.05		-