10.	STOCK OPTION PLANS

We instituted the

2003

Incentive Stock Plan (the

“2003

Plan”) in

March 2003.

The

2003

Plan authorized the issuance of up to

450,000

options to purchase shares of common stock to officers and key employees, with vesting of such options occurring equally over a

-year time period. In

2013,

the

2003

Plan expired with

197,500

options ungranted. In the years ended

December 31, 2019

and

2018,

25,000

shares and

shares, respectively, were exercised under the

2003

Plan. In

June 2015,

shareholders approved the

2015

Incentive Stock Plan (the

“2015

Plan”) which authorizes the issuance of up to

750,000

options to purchase shares of common stock to employees and key consultant and advisors. In

2019,

shares were exercised under the

2015

Plan. In

2018,

20,000

shares were exercised under the

2015

Plan. In

2019,

30,000

shares were granted and in

2018

shares were granted under the

2015

Plan.

August 2000,

we instituted a Non-Employee Directors’ Stock Option Plan (the “Directors Plan”) that authorized the issuance of up to

200,000

shares of common stock to non-employee directors. Upon adoption of the Directors Plan, each non-employee director was granted an option to acquire

5,000

shares. At each Annual Meeting, each director receives a grant of

4,000

options, which vest in

50%

increments on the

first

and

second

anniversary. The Directors Plan expired in

2011,

with

60,000

options ungranted. The shareholders approved a new plan, the

2011

Non-Employee Directors Stock Plan (the

“2011

Directors Plan”), in

May 2011,

with essentially the same terms and conditions as the Directors Plan. In the years ended

December 31, 2019

and

2018,

12,000

options were granted to non-employee members of our board of directors at the

2019

and

2018

Annual Meetings, respectively, pursuant to the

2011

Directors Plan. Additionally, in

2019

and

2018,

8,000

and

12,000

shares, respectively, were exercised under the Directors Plan. In

2019

and

2018,

74,000

and

8,000

shares, respectively, were exercised under the

2011

Directors Plan.

Stock options under all plans are granted at an exercise price equal to fair value on the date of grant and vest over

years. As of

December 31, 2019,

a total of

1,356,500

options under all plans have been granted,

947,320

have been exercised,

282,680

have been cancelled,

84,500

are fully vested and exercisable and

42,000

are

not

vested. All options expire

ten

years from their respective dates of grant.

As of

December 31, 2019,

there was

$414,000

unrecognized compensation cost related to stock options granted under the plans, which is expected to be a recognized over a period of

1.5

years.

Stock option activity during the years ended

December 31, 2019

and

2018

was as follows:

	201 9					201 8
Options outstanding at January 1				207,500					243,500
Options cancelled				(16,000	)				(8,000	)
Options exercised				(107,000	)				(40,000	)
Options granted				42,000					12,000
Options outstanding at December 31				126,500					207,500

Options available for grant at December 31				763,000					805,000

Options exercisable at December 31				84,500					179,000

Exercise price ranges per share:
Granted	$	19.99	-	$39.11		$			7.80
Exercised	$	0.69	-	$ 7.80		$	0.69	-	$ 3.89
Outstanding	$	1.52	-	$ 39.11		$	0.69	-	$ 7.80

Weighted average exercise price per share:
Granted	$			25.45		$			7.80
Exercised	$			1.97		$			2.79
Outstanding at December 31	$			8.94		$			2.33
Exercisable at December 31	$			2.21		$			1.82

The following tables summarize information about the stock options outstanding under the company’s option plans as of

December 31, 2019.

Options Outstanding:
Range of Exercise Price			Number Outstanding		Wgt. Avg. Contractual Life Remaining (in years)		Wgt. Avg. Exercise Price		Aggregate Intrinsic Value
$1.52	-	$1.72		67,500		1.5	$	1.59	$	2,588,850
$3.50	-	$39.11		59,000		8.6	$	17.35	$	1,332,740
$1.52	-	$39.11		126,500		4.8	$	8.94	$	3,921,590

Options Exercisable:
Range of Exercise Price			Number Exercisable		Wgt. Avg. Contractual Life Remaining (in years)		Wgt. Avg. Exercise Price		Aggregate Intrinsic Value
$1.52	-	$1.72		67,500		1.5	$	1.59	$	2,588,850
$3.50	-	$7.80		17,000		7.5	$	4.70	$	599,040
$1.52	-	$7.80		84,500		2.7	$	2.21	$	3,187,890

Aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the company’s closing stock price on the last trading day of the year ended

December 31, 2019

and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on

December 31, 2019.

The amount of aggregate intrinsic value will change based on the fair value of the company’s common stock.