XML 32 R19.htm IDEA: XBRL DOCUMENT v3.19.1
Stock Options and Awards
12 Months Ended
Dec. 31, 2018
Stock options and awards [Abstract]  
Stock options and awards

Note 12 - Stock Options and Awards:

 

On May 29, 2015, the Company’s shareholders approved the Ocean Bio-Chem, Inc. 2015 Equity Compensation Plan (the “Plan”). The Plan provides for grants of several types of awards at the discretion of the Equity Grant Committee of the Company’s Board of Directors, including stock options, stock units, stock awards, stock appreciation rights and other stock based awards. The Plan authorizes the issuance of 630,000 shares of Company common stock, subject to anti-dilution adjustments upon the occurrence of certain events affecting the common stock. During the years ended December 31, 2018 and 2017, the Company granted stock awards under the Plan aggregating 81,400 and 79,100 shares of common stock, respectively, to officers, key employees, directors and, in 2017, a consultant of an affiliated company. Following the withholding of an aggregate of 6,299 and 5,500 shares of common stock, respectively, in connection with a tax withholding feature of the Plan, 75,101 and 73,600 shares were delivered to the award recipients, during the years ended December 31, 2018 and 2017, respectively. At December 31, 2018, 262,000 shares remained available for future issuance under the Plan.  The shares vested immediately upon issuance and were fully expensed in the period in which they were awarded. Compensation expense related to the stock awards was $330,823 and $324,145 for the years ended December 31, 2018 and 2017, respectively. The Company withheld shares in 2018 and 2017 that had a value of $25,794 and $22,468, respectively, for income tax withholding related to the awards. As a result of the adoption of the Plan, no further stock awards will be made under the Company’s equity compensation plans previously approved by its shareholders (the “Prior Plans”).

 

Prior to the May 29, 2015 effective date of the Plan, stock options were granted under the Prior Plans. Only non-qualified options granted under the Prior Plans were outstanding on December 31, 2018. Outstanding non-qualified options were granted to outside directors, have a 10-year term from the date of grant and are immediately exercisable.  The last tranche of non-qualified options previously granted terminate on April 25, 2020.  There was no compensation expense attributable to stock options recognized during the years ended December 31, 2018 and 2017, and at December 31, 2018 and 2017, there was no unrecognized compensation cost related to share based compensation arrangements

 

During 2018, a former director exercised a stock option to purchase 10,000 shares of common stock. The Company withheld 1,490 shares in connection with the net exercise of the stock option by the former director and delivered 8,510 shares to the former director.

 

During 2017, stock options to purchase an aggregate of 40,000 shares of common stock were exercised. The Company received a total of $26,400, withheld 5,957 shares in connection with the net exercise feature of the stock options and delivered an aggregate of 34,043 shares to the option holders who exercised their options.

  

The following tables provide information regarding outstanding options under the Company’s stock option plans at December 31, 2018 and 2017.  All options referenced in the table below were granted under the Company’s 2008 Non-Qualified Stock Option Plan.

 

At December 31, 2018:              
               
Date Granted Options Outstanding  Exercisable 
Options
  Exercise Price  Expiration 
Date
 Weighted Average 
Remaining  Life
 
1/11/09  30,000   30,000   0.69  1/10/19  0.0 
4/26/10  20,000   20,000   2.07  4/25/20  1.3 
   50,000   50,000  $1.24     0.6 

 

At December 31, 2017:              
               
Date Granted Options Outstanding  Exercisable 
Options
  Exercise Price  Expiration 
Date
 Weighted Average 
Remaining  Life
 
1/11/09  40,000   40,000   0.69  1/10/19  1.0 
4/26/10  20,000   20,000   2.07  4/25/20  2.4 
   60,000   60,000  $1.15     1.5 

  

The following table provides information relating to stock option transactions during the years ended December 31, 2018 and 2017:

 

  2018  2017 
     Weighted     Weighted 
     Average     Average 
     Exercise     Exercise 
  Shares  Price  Shares  Price 
Options outstanding beginning of the year  60,000  $1.15   100,000  $1.22 
Options exercised  (10,000)  0.69   (40,000)  1.32 
Total  50,000  $1.24   60,000  $1.15