4) Stock-based Compensation |
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4) Stock-based Compensation | 4) Stock-Based Compensation
The Company has four fixed option plans (the “2003 Plan”, the “2006 Director Plan”, the “2013 Plan” and the “2014 Director Plan”). Compensation expense for options issued of $84,949 and $88,510 has been recognized for these plans for the three months ended September 30, 2016 and 2015, respectively, and $253,427 and $299,986 for the nine months ended September 30, 2016 and 2015, respectively. As of September 30, 2016, the total unrecognized compensation expense related to the options issued in December 2015 was $59,161, which is expected to be recognized over the vesting period of one year.
The Company generally estimates the expected life of the options based upon the contractual term of the options adjusted for actual experience. Future volatility is estimated based upon the a weighted historical volatility of the Company’s Class A common stock and three peer company stocks over a period equal to the estimated life of the options. Common stock issued upon exercise of stock options are generally new share issuances rather than from treasury shares.
A summary of the status of the Company’s stock incentive plans as of September 30, 2016, and the changes during the nine months ended September 30, 2016, are presented below:
A summary of the status of the Company’s stock incentive plans as of September 30, 2015, and the changes during the nine months ended September 30, 2015, are presented below:
The total intrinsic value (which is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date) of stock options exercised during the nine months ended September 30, 2016 and 2015 was $98,663 and $532,418, respectively. |