9. Non-Cash Share-Based Employee Compensation

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

NOTE 9 - Non-Cash Share-Based Employee Compensation

The Company has an employee and non-employee director share-based incentive compensation plan. Related to these programs, the Company recorded non-cash share-based employee compensation expense of $19 and $34 for the three and nine months ended September 30, 2017, respectively, compared with $16 and $42, 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 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 and nine months ended September 30, 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 nine months ended September 30, 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		248,500		4.84		-		1.54		-
Exercised		125,000		2.88		-		1.62		-
Forfeited		80,000		4.31		-		1.95		-
Expired		-		-		-		-		-
As of September 30, 2017
Outstanding		354,500		4.46		7.60		1.79		35,960
Vested		108,000		3.69		3.36		2.28		35,960
Nonvested		246,500		4.80		9.46		1.57		-

Restricted Stock Units

On June 15, 2017, the Company granted to each non-employee director RSUs with a grant fair value of $20 per award, which will vest on June 15, 2018, subject to continued service through such vesting date.