9. Non-Cash Share-Based Employee Compensation

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

NOTE 9 - 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 $2 for the three months ended March 31, 2017, compared with $12 for the same quarter last year. The Company considers its non-cash share-based employee compensation expenses as a component of cost of products and 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, 2017 was calculated using certain assumptions. Such assumptions are described more comprehensively in Note 11 (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, 2016.

A summary of activity under the Company’s stock option plans during the three months ended March 31, 2017 is presented below:

As of January 1, 2017	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		311,000		3.48		-		1.96		-
Vested		231,000		3.30		-		1.97		-
Nonvested		80,000		4.01		-		1.93		-
Period activity
Issued		178,500		5.10		-		1.36		-
Exercised		125,000		2.88		-		1.62		-
Forfeited		60,000		3.95		-		2.03		-
Expired		-		-		-		-		-
As of March 31, 2017
Outstanding		304,500		4.58		7.46		1.73		150,960
Vested		108,000		3.80		3.77		2.37		136,850
Nonvested		196,500		5.02		9.50		1.38		14,110