Note 10 - Share-based Compensation

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

10. SHARE-BASED COMPENSATION

The Company accounts for share-based compensation arrangements, including grants of employee stock options, as compensation expense over the service period (generally the vesting period) in the financial statements based on their fair values. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized. Excess tax benefits are reported as a financing cash inflow rather than as a reduction of taxes paid.

The total compensation expense recognized for share-based compensation was $271,000 and $425,000 for 2014 and 2013, respectively. There was no tax benefit or expense related thereto. Recognized share-based compensation was reduced for estimated forfeitures prior to vesting based primarily on historical annual forfeiture rates of approximately 2.6% and 2.8%, for 2014 and 2013, respectively. Estimated forfeitures will be reassessed in subsequent periods and may change based on new facts and circumstances. Executive officers and certain members of management received annual incentive awards totaling $218,000 and $133,100 in February 2014 and 2013, respectively, based on the achievement of certain predefined performance goals and objectives. The annual incentive awards are paid in stock of the Company and resulted in the issuance of 35,917 and 33,187 shares in February 2014 and 2013, respectively.

Stock Options

In May 2006, the Company’s shareholders approved the 2006 Equity and Incentive Award Plan (2006 Plan) and an increase in the number of shares of common stock authorized under the Articles of Association by 1,000,000 shares, all of which have been reserved for issuance under the 2006 Plan. The 2006 Plan provides that the administrator can grant stock options and other equity instruments. The terms of certain grant types follow general guidelines, but the term and conditions of each award can vary at the discretion of the administrator. With respect to awards granted to non-employee directors, the administrator of the 2006 Plan is the Board of Directors. The Compensation Committee of the Board is the administrator of the 2006 Plan for all other persons, unless the Board assumes authority for administration. At December 31, 2014, there were 397,011 shares remaining and available for issuance under the 2006 Plan.

A summary of stock option award activity as of and for the years ended December 31, 2013 and 2014 are as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Grant-Date Fair Value		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value $(000)(1)
Outstanding at January 1, 2013		79,000		$	23.52
Forfeited or cancelled		(19,000	)	$	35.82	$	12.29
Outstanding at December 31, 2013		60,000		$	19.63	$	7.33		3.4	$	-
Exercisable at December 31, 2013		55,000		$	20.94	$	7.77		2.5	$	-
Expected to vest at December 31, 2013 (2)		3,600		$	5.20	$	2.48		5.2	$	-
Outstanding at January 1, 2014		60,000		$	19.63
Forfeited or cancelled		(12,500	)	$	33.88	$	10.63
Outstanding at December 31, 2014		47,500		$	15.88	$	6.46		3.1	$	-
Exercisable at December 31, 2014		47,500		$	15.88	$	6.46		3.1	$	-
Expected to vest at December 31, 2014 (2)		-		$	-	$	-		-	$	-

(1) For in the money options.

(2) Options expected to vest reflect estimated forfeitures.

There were no stock options granted or exercised during the years ended December 31, 2014 or 2013. The fair value of shares vested was $12,000 for the years ended December 31, 2014 and 2013. These options will expire if they are not exercised by specific dates through March 2019. As of December 31, 2014, there was no unamortized compensation expense for awards granted under the stock option plans.

Restricted Stock

There were 14,896 and 12,000 shares of restricted stock granted to management and the Company’s Board of Directors in 2014 and 2013, respectively. During the years ended December 31, 2014 and 2013, 42,367 and 74,342 shares of restricted stock vested as directors’ and management service requirements were met. All restricted shares granted in 2014 and 2013 were granted under the 2006 Plan. The weighted average grant-date fair value of restricted stock granted during 2014 and 2013 was $8.06 and $4.03 per share, respectively.

A summary of the activity of nonvested restricted stock awards as of and for the year ended December 31, 2014 is as follows:

				Weighted
				Average
				Grant-Date
	Shares			Fair Value
Nonvested balance at January 1, 2013		94,137		$	5.56
Granted		12,000		$	4.03
Vested		(74,342	)	$	4.79
Nonvested balance at December 31, 2013		31,795		$	5.79
Nonvested balance at January 1, 2014		31,795		$	5.79
Granted		14,896		$	8.06
Vested		(42,367	)	$	3.85
Forfeited or cancelled		(600	)	$	7.25
Nonvested balance at December 31, 2014		3,724		$	8.06