Stock-Based Compensation

9 Months Ended

Sep. 30, 2015

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

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

3. Stock-Based Compensation

2006 Equity Incentive Plan

The Company’s 2006 Incentive Plan provides for the grant or issuance to officers, directors, employees and consultants of options with terms of up to ten years, restricted stock, stock unit awards (SUA’s), issuances of stock bonuses or other stock-based awards, covering up to 500,000 shares of common stock. As of September 30, 2015, 70,232 shares remained available for future grant under the 2006 Incentive Plan.

On April 29, 2015 the Company granted SUAs covering 43,950 shares of common stock. On September 15, 2015 the Company granted SUAs covering 1,000 shares of common stock. The SUAs vest over a period of two years for non-employee board members and four years for employees and are convertible into an equivalent number of shares of the Company’s common. Employees are issued shares upon vesting, net of tax withholdings, unless the employee chooses to receive all shares and pay for the associated employment taxes. On September 15, 2015 the Company also granted 47,000 stock options to employees and a director. The stock options become exercisable over a five year period and have a term of 10 years. The options are valued at $1.91, assuming a $10.21 grant price, 6.5 years estimated term, 36% volatility, 2.2% interest rate and a 6% yield rate using a black-scholes model. The Company records compensation expense related to the SUAs and options on a straight-line basis over the vesting term. No other types of equity-based awards have been granted or issued under the 2006 Incentive Plan.

2006 Incentive Plan (“2006 Plan”)

A summary of activity for SUAs under the 2006 Plan for the nine months ended September 30, 2015 is as follows:

			Aggregate
	Number of		Intrinsic
	Shares		Value (1)
			(000s)
Unvested, December 31, 2014		121,625
Granted		44,950
Forfeited/expired		(15,297)
Converted to common stock		(39,814)
Unvested, March 31, 2015		111,464	$	0

(1) The aggregate intrinsic value on these tables were calculated based on the closing market value of the Company’s stock on September 30, 2015 ($10.05).

As of September 30, 2015, the Company also had outstanding an aggregate of 47,000 options to acquire common stock under the 2006 Plan. A summary of stock option activity for the 2006 Plan for the nine months ended September 30, 2015 is as follows:

  

			Weighted		Weighted
			Average		Average
			Exercise		Remaining		Aggregate
	Number of		Price Per		Contractual		Intrinsic
	Shares		Share		Life		Value (1)
							(000s)
Outstanding, December 31, 2014		-		-
Granted		47,000	$	10.21
Exercised		-		-
Terminated/Expired		-		-
Outstanding, September 30, 2015		47,000	$	10.21		10 years	$	0
Exercisable, September 30, 2015		-		-		-		-

(2) The aggregate intrinsic value on this table was calculated based on the amount, if any, by which the closing market value of the Company’s stock on the September 30, 2013 ($10.05) exceeded the exercise price of the underlying options, multiplied by the number of shares subject to each option.

As of September 30, 2015, 70,232 shares of common stock were available for grant under the 2006 Plan.

Expired Plans

As of September 30, 2015, all options to acquire common stock that had been outstanding on December 31, 2014, were either exercised or expired without having been exercised. A summary of stock option activity for the Company’s expired stock option plans for the nine months ended September 30, 2015 is as follows:

			Weighted		Weighted
			Average		Average
			Exercise		Remaining		Aggregate
	Number of		Price Per		Contractual		Intrinsic
	Shares		Share		Life		Value
							(000s)
Outstanding, December 31, 2014		136,050	$	14.40
Granted		-		-
Exercised		(134,350)	$	14.40
Terminated/Expired		(1,700)	$	14.40
Outstanding, September 30, 2015		-		-		-	$	-
Exercisable, September 30, 2015		-		-		-	$	-
Available for grant, September 30, 2015		-

All Stock-Based Compensation Plans

As of September 30, 2015, a total of 228,696 shares of common stock were reserved for issuance under the 2006 Incentive Plan. As of September 30, 2015, the unamortized fair value of awards relating to outstanding SUAs and options was $1.4 million, which is expected to be amortized over a weighted average period of 3.0 years.