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Note 5 - Stock-based Compensation
 9 Months Ended
Sep. 30, 2019
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]
5.
Stock-Based Compensation
 
The Company’s
2006
Incentive Plan (“the Plan”) provides for cash-based awards or the grant or issuance of stock-based awards. As of
December 31, 2018,
77
thousand shares remained available for future grant under the
2006
Plan. In
2019,
an additional
350
thousand shares were approved for grant. There were
no
other changes to the plan as described in the
10
-K. As of
September 30, 2019,
221
thousand shares remained available for future grant under the Plan.
 
Share-based compensation is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). The compensation cost charged against income is included in cost of revenues and operating expenses as follows (in thousands):
 
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2019   2018   2019   2018
Share-based compensation related to:                                
Stock option grants   $
151
     $
102
     $
372
     $
233
  
Restricted Stock Unit awards ("RSUs")    
39
      
56
      
137
      
203
  
Total share-based compensation   $
190
     $
158
     $
509
     $
436
  
 
There was
no
income tax benefit recognized in the condensed consolidated statements of income for share-based compensation arrangements for the
three
-month or
nine
-month periods ended
September 30, 2019
and
2018.
 
A summary of the Company’s stock option activity for the
nine
months ended
September 30, 2019
is as follows (in
000’s
except per share amounts):
 
        Weighted Average   Weighted Average   Aggregate
   
Number of
  
Exercise Price
  
Remaining
  
Intrinsic
   
Shares
  
Per Share
  
Contractual Life (years)
   Value
(1)
Outstanding, December 31, 2018    
398
 
   $
17.09
 
  
8.2
   $
493
 
Granted    
192
 
   $
10.60
 
  
 
    
 
 
Exercised    
-
 
    
-
 
  
 
    
 
 
Forfeited    
-
 
    
-
 
  
 
    
 
 
Outstanding, September 30, 2019    
590
 
   $
14.98
 
  
8.1
   $
-
 
                             
Exercisable, September 30, 2019    
239
 
   $
14.55
 
  
7.2
   $
-
 
 
(
1
)
 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
September 30, 2019 (
$9.11
) exceeded the exercise price of the underlying options, multiplied by the number of shares subject to each option.
 
A summary of the Company’s stock unit award (“SUA”) activity for the
nine
months ended
September 30, 2019
is as follows (in
000’s
except per share amounts):
 
    Number of Shares   Weighted Average Price per Share
(2)
   Weighted Average Fair Value
(2)
             
Outstanding & Unvested, December 31, 2018    
19
     $
18.20
     $
343
  
Granted    
18
     $
10.60
     $
191
  
Converted to common stock    
(10
 )    
 
      
 
  
Cancelled    
(3
 )    
 
      
 
  
Forfeited    
-
      
 
      
 
  
Outstanding & Unvested, September 30, 2019    
24
     $
12.84
     $
311
  
 
(
2
)		 Weighted average price per share is the weighted grant price based on the closing market price of each of the stock grants related to each grant of stock unit awards. The weighted average fair value is the weighted average share price times the number of shares.
 
As of
September 30, 2019,
a total of
835
thousand shares of common stock were reserved for issuance under the Plan. As of
September 30, 2019,
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
2.9
years.