10. Non-Cash Share-Based Employee Compensation

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

NOTE 10 - Non-Cash Share-Based Employee Compensation

The Company has employee and non-employee director stock option programs.  Related to these programs, the Company recorded non-cash share-based employee compensation expense of $12 for the three months ended March 31, 2016, compared with $7 for the same quarter last year.  The Company considers its non-cash share-based employee compensation expenses as a component of selling, general and administrative expenses   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, 2016 was calculated using certain assumptions.  Such assumptions are described more comprehensively in 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, 2015.

A summary of activity under the Company’s stock option plans during the three months ended March 31, 2016 is presented below:

As of January 1, 2016	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		291,936		4.07		-		2.68		-
Vested		276,936		4.00		-		2.72		-
Nonvested		15,000		5.35		-		1.93		-
Period activity
Issued		60,000		3.83		-		2.22		-
Exercised		-		-		-		-		-
Forfeited		-		-		-		-		-
Expired		32,936		11.40		-		9.16		-
As of March 31, 2016
Outstanding		319,000		3.27		4.71		1.93		411,560
Vested		244,000		3.00		3.46		1.86		370,160
Nonvested		75,000		4.13		8.76		2.16		41,400