Note 4. Equity

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Equity

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 and June 17, 2020, the shareholders of the Company approved an additional 200,000 and 200,000 awards, respectively, to be issued under the 2014 Plan, bringing the total number of shares to be awarded to 600,000. 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 September 30, 2020, there are 236,583 shares which remain to be granted under the 2014 Plan.

The following table summarizes information about stock options outstanding and exercisable at September 30, 2020:

		Options Outstanding						Options Exercisable
Exercise Price Range		Number		Weighted Average Remaining Contractual Life (in Years)		Weighted Average Exercise Price		Number
$	0.01 - 7.00		10,000		5.14	$	6.80		10,000
$	7.01 - 8.00		15,313		2.99	$	7.76		15,313
$	8.01 - 12.00		7,167		6.13	$	9.88		5,167
$	12.01 - 15.00		47,750		7.70	$	13.10		35,250
$	15.01 - 17.40		24,000		7.67	$	17.40		24,000
	Total		104,230		6.65	$	12.48		89,730

As of September 30, 2020, the Company had unrecognized stock compensation related to the options of $35,000, which will be recognized through 2021.

During the nine months ended September 30, 2020, the Company granted 18,000 restricted stock units with an intrinsic value of $10.67, to certain members of the Board of Directors of the Company. The vesting period for the restricted stock units is the earlier of the 2021 annual meeting of shareholders or one year depending on whether a director stands for re-election at the 2021 annual meeting. During the nine months ended September 30, 2020, 32,000 restricted stock units with an intrinsic value of $11.61 vested. As of September 30, 2020, there was $142,000 of unrecognized compensation cost related to our unvested restricted stock units, which will be recognized through 2021.

Stock repurchase and retirement

On August 7, 2019, the Company publicly announced a share repurchase program under which the Company is authorized to repurchase up to $1,000,000 of its common shares. On March 16, 2020, the Company publicly announced that the Company increased the share repurchase program to repurchase up to $2,000,000 of its common shares. As of September 30, 2020, the Company repurchased a total of 160,068 shares at an aggregate cost of $1,552,000 (not including commissions of $7,000) as shown in the table below ($ in 000’s, except share or per share amounts):

		Shares Repurchased
Period		Total Number of Shares Repurchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program
	August 7 -31, 2019		22,150	$	9.34		22,150	$	793
	September 1-30, 2019		2,830	$	10.00		2,830	$	765
	October 1-31, 2019		39,363	$	10.44		39,363	$	354
	November 1-30, 2019		11,827	$	10.43		11,827	$	231
	December 1-31, 2019		—		—		—	$	231
	January 1-31, 2020		—		—		—	$	231
	February 1-29, 2020		—		—		—	$	231
	March 1-31, 2020		21,700	$	9.33		21,700	$	1,028
	April 1-30, 2020		22,698	$	9.02		22,698	$	823
	May 1-31, 2020		39,500	$	9.51		39,500	$	448
	June 1-30, 2020		—		—		—	$	448
	July 1-31, 2020		—		—		—	$	448
	August 1-31, 2020		—		—		—	$	448
	September 1-30, 2020		—		—		—	$	448
	Total		160,068	$	9.70		160,068	$	448