Note 9 - Stock-based Compensation

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

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

Note

9

. Stock-Based Compensation

On

August 23, 2017,

the Company issued an aggregate of

60,000

stock options to its directors and officers. The related stock compensation expense was

not

material.

On

June 11, 2018,

the Company issued an aggregate of

10,000

stock options to a director. The related stock compensation expense was

not

material.

The Company previously had stock option agreements with its directors and officers. Details of options activity is as follows:

	Number of Shares		Weighted Average Exercise Price per Share		Weighted Average Fair Value at Grant Date		Weighted Average Remaining Contractual Life		Intrinsic Value
Balance December 31, 2016		-	$	-		-		-		-
Options granted		60,000		8.00		-		-		-
Options exercised		-		-		-		-		-
Options expired		-		-		-		-		-
Balance December 31, 2017		60,000	$	8.00	$	-		-	$	-
Options granted		-		-		-		-		-
Options exercised		-		-		-		-		-
Options expired		-		-		-		-		-
Balance March 31, 2018		60,000	$	8.00	$	-		4.50	$	-
Options granted		10,000		6.00		-		5.00		-
Options exercised		-		-		-		-		-
Options expired		-		-		-		-		-
Balance June 30, 2018		70,000	$	7.71	$	-		4.36	$	-

The fair values of stock options are estimated using the Black-Scholes method, which takes into account variables such as estimated volatility, expected holding period, dividend yield, and the risk-free interest rate. The risk-free interest rate is the

five

-year treasury rate at the date of grant. The expected life is based on the contractual life of the options at the date of grant. All

70,000

options were fully vested at grant date. The intrinsic value is

not

material.