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5) Stock Compensation Plans
 3 Months Ended
Mar. 31, 2020
Disclosure Text Block [Abstract]  
5) Stock-based Compensation

5)       Stock Compensation Plans

 

The Company has two fixed option plans (the “2013 Plan” and the “2014 Director Plan”). Compensation expense for options issued of $65,877 and $64,704 has been recognized for these plans for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, the total unrecognized compensation expense related to the options issued was $248,574, which is expected to be recognized over the vesting period of one year.

 

The fair value of each option granted is estimated on the date of grant using the Black Scholes Option Pricing Model. The Company estimates the expected life of the options using the simplified method. Future volatility is estimated based upon the weighted historical volatility of the Company’s Class A common stock over a period equal to the expected life of the options. The risk-free interest rate for the expected life of the options is based upon the Federal Reserve Board’s daily interest rates in effect at the time of the grant.

 

A summary of the status of the Company’s stock compensation plans as of March 31, 2020, and the changes during the three months ended March 31, 2020, are presented below:

 

    Number of
Class A Shares		   Weighted Average Exercise Price   Number of
Class C Shares		   Weighted Average Exercise Price
                 
Outstanding at January 1, 2020         1,086,053    $      4.41            594,132    $      5.36
Adjustment for effect of stock dividends                   829                           -    
Granted              37,500                  90,000    
Exercised            (42,294)                           -    
Cancelled                       -                           -    
Outstanding at March 31, 2020         1,082,088    $      4.44            684,132    $      5.15
                 
As of March 31, 2020:                
Options exercisable            985,366    $      4.42            452,381    $      5.39
                 
As of March 31, 2020:                
Available options for future grant              97,218                           -    
                 
Weighted average contractual term of options                
outstanding at March 31, 2020   5.57 years       5.96 years    
                 
Weighted average contractual term of options                
exercisable at March 31, 2020   5.16 years       4.70 years    
                 
Aggregated intrinsic value of options                
outstanding at March 31, 2020 (1)   $489,237       $41,150    
                 
Aggregated intrinsic value of options                
exercisable at March 31, 2020 (1)   $471,642        $               -       
                                                 
                 
(1) The Company used a stock price of $4.27 as of March 31, 2020 to derive intrinsic value.

 

A summary of the status of the Company’s stock compensation plans as of March 31, 2019, and the changes during the three months ended March 31, 2019, are presented below:

 

    Number of
Class A Shares		   Weighted Average Exercise Price   Number of
Class C Shares		   Weighted Average Exercise Price
                 
Outstanding at January 1, 2019         1,011,274    $      4.49            577,280    $      5.15
Granted                2,000                           -    
Exercised                 (968)                           -    
Cancelled                       -                           -    
Outstanding at March 31, 2019         1,012,306    $      4.49            577,280    $      5.15
                 
As of March 31, 2019:                
Options exercisable            898,472    $      4.36            506,404    $      5.13
                 
As of March 31, 2019:                
Available options for future grant            295,128                146,425    
                 
Weighted average contractual term of options                
outstanding at March 31, 2019   5.89 years       3.71 years    
                 
Weighted average contractual term of options                
exercisable at March 31, 2019   5.71 years       2.87 years    
                 
Aggregated intrinsic value of options                
outstanding at March 31, 2019 (1)   $704,498       $137,424    
                 
Aggregated intrinsic value of options                
exercisable at March 31, 2019 (1)   $704,498       $137,424    
                                                 
                 
(1) The Company used a stock price of $4.72 as of March 31, 2019 to derive intrinsic value.

 

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 three months March 31, 2020 and 2019 was $73,072 and $1,539, respectively.