9. Non-Cash Share-Based Employee Compensation

6 Months Ended

Jun. 30, 2018

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 $17 and $38 for the three and six months ended June 30, 2018, respectively, compared with $14 and $16, 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 six months ended June 30, 2018 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, 2017.

A summary of activity under the Company’s stock option plans during the six months ended June 30, 2018 is presented below:

As of January 1, 2018		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		354,500		4.46		—		1.79		—
	Vested		113,000		3.75		—		2.23		—
	Nonvested		241,500		4.80		—		1.58		—
	Period activity
	Issued		130,000		3.72		—		1.62		—
	Exercised		—		—		—		—		—
	Forfeited		23,500		5.10		—		1.37		—
	Expired		—		—		—		—		—
	As of June 30, 2018
	Outstanding		461,000		4.22		7.58		1.76		40,560
	Vested		143,000		4.01		3.91		2.06		38,560
	Nonvested		318,000		4.31		9.23		1.63		2,000

Restricted Stock Units

On June 4, 2018, the Company granted to each non-employee director restricted stock units with a grant fair value of $20 per award (resulting in total aggregate grant-date fair value of $140), which will vest on June 4, 2019, subject to continued service through such vesting date. On June 15, 2017, the Company granted to each non-employee director restricted stock units with a grant fair value of $20 per award (resulting in total aggregate grant-date fair value of $140), which vested on June 15, 2018. The Company recorded non-cash restricted stock unit compensation expense of $39 and $73 for the three and six months ended June 30, 2018, respectively, compared with $6 and $0 for the same periods last year.