10. Non-Cash Share-Based Employee Compensation

9 Months Ended

Sep. 30, 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 $16 and $42, respectively, for the three and nine months ended September 30, 2016, compared with $16 and $33, respectively, for the same periods 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 and nine months ended September 30, 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 nine months ended September 30, 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		80,000		4.01		-		2.08		-
Exercised		28,000		1.81		-		0.99		-
Forfeited		-		-		-		-		-
Expired		32,936		11.40		-		9.16		-
As of September 30, 2016
Outstanding		311,000		3.48		4.45		2.00		581,200
Vested		231,000		3.30		3.15		1.97		474,800
Nonvested		80,000		4.01		8.21		2.08		106,400