Note 4. Stock-based Compensation

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Stock-based Compensation

2014 Equity Incentive Plan

On May 23, 2014, the shareholders of the Company approved the 2014 Equity Incentive Plan (the “2014 Plan”).  Under the terms of the 2014 Plan, the Company is authorized to issue incentive awards for common stock up to 200,000 shares to employees and other personnel.  The awards may be in the form of incentive stock options, nonqualified stock options, restricted stock, restricted stock units and performance awards.  The 2014 Plan is effective through March 31, 2024.  As of September 30, 2015, 14,000 stock options and 136,000 restricted stock units had been issued under the 2014 Plan.

Stock Awards

The following table summarizes information about stock options outstanding and exercisable at September 30, 2015 from both the 2014 and 2010 Equity Incentive Plans:

		Options Outstanding						Options Exercisable
Exercise Price Range		Number		Weighted Average Remaining Contractual Life (in Years)		Weighted Average Exercise Price		Number
$	0.01 - $1.00		19,700		6.31	$	0.01		19,700
$	1.01 - $2.00		4,550		5.65	$	1.70		4,550
$	2.01 - $3.00		9,000		2.28	$	2.69		1,500
$	3.01 - $4.00		14,000		6.51	$	3.33		14,000
$	4.01 - $8.00		98,750		5.57	$	7.76		48,750
$	8.01 - $9.00		40,000		2.89	$	8.25		22,500
$	9.01 - $10.00		14,000		9.24	$	9.26		0
$	10.01 - $13.49		40,000		3.44	$	13.49		15,000
Total			240,000		4.98	$	7.68		126,000

As of September 30, 2015, the Company had unrecognized stock compensation related to stock options and restricted stock units of $1,588,356, a portion of which is expected to be capitalized as software development costs in the future.