Note 3. Stock Options and Restricted Stock Units

6 Months Ended

Jun. 30, 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 June 30, 2017, 258,000 awards had been granted under the 2014 Plan.

The following table summarizes information about stock options outstanding and exercisable at June 30, 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		4.55	$	0.01	7,850
	$	1.01 - $7.00		10,000		8.39	$	6.80	4,167
	$	7.01 - $8.00		62,188		3.04	$	7.76	57,189
	$	8.01 - $10.00		5,667		7.49	$	9.26	4,167
	$	10.01 - $13.49		40,000		1.69	$	13.49	32,500
Total				125,705		3.33	$	9.09	105,873

As of June 30, 2017, the Company had unrecognized stock compensation related to the options of $145,000, which will be recognized through 2019.

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. For the three and six-month periods ended June 30, 2017, 5,000 and 43,170 restricted stock units with an intrinsic value of $8.48 and $6.16 vested, respectively. As of June 30, 2017, there was $284,000 of unrecognized compensation cost related to our unvested restricted stock units, which will be recognized through 2020.