Note 3. Stock Options and Restricted Stock Units

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Stock Options and Restricted Stock Units

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.  On June 10, 2016, the shareholders of the Company approved an additional 200,000 awards to be issued under the 2014 Plan, bringing the total number of shares to be awarded to 400,000.  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 March 31, 2017, 258,000 awards had been granted under the 2014 Plan.

The following table summarizes information about stock options outstanding and exercisable at March 31, 2017:

		Options Outstanding									Options Exercisable
	Exercise Price Range			Number			Weighted Average Remaining Contractual Life (in Years)			Weighted Average Exercise Price			Number
	$	0.01 - $1.00			7,850			4.81		$	0.01			7,850
	$	1.01 - $4.00			3,000			5.00		$	3.33			3,000
	$	4.01 - $7.00			10,000			8.64		$	6.80			3,333
	$	7.01 - $8.00			78,750			3.45		$	7.76			68,750
	$	8.01 - $10.00			11,000			7.74		$	9.26			7,330
	$	10.01 - $13.49			40,000			1.94		$	13.49			30,000
Total			150,600			3.80		$	8.83			120,263

As of March 31, 2017, the Company had unrecognized stock compensation related to the options of $231,283.

On January 24, 2017, the Company granted 9,500 restricted stock units with an intrinsic value of $8.85 to certain employees of the Company. The restricted stock units vest one-third annually over three years. As of March 31, 2017, 38,170 restricted stock units with an intrinsic value of $5.86 vested. As of March 31, 2017, there was $355,561 of unrecognized compensation cost related to our unvested restricted stock units, which will be recognized through 2019.