12. SHARE-BASED COMPENSATION

On May 7, 2014, our shareholders approved the 2014 Omnibus Incentive Plan (the “2014 Plan”). The 2014 Plan includes 500,000 of our common shares that may be granted under various types of awards as described in the 2014 Plan. As of December 31, 2018, we were authorized to issue 257,941 shares under this plan.

Stock options

The following table presents the weighted average assumptions used in the option-pricing model at the grant date for options granted in the years ended December 31:


		2018		2017
Assumptions:
Risk-free interest rate		1.94	%	2.25	%
Expected dividend yield		2.22	%	3.74	%
Expected volatility of Rocky's common stock		41.69	%	35.33	%
Expected option term (years)		6.5		6.5
Weighted-average grant date fair value per share	$	6.94	$	2.94

For the years ended 2018 and 2017, we recognized share-based compensation expense and the corresponding tax benefit as follows:


($ in thousands)		2018		2017
Share-based compensation expense	$	588	$	146
Tax benefit		102		22

The following summarizes stock option activity for the year ended December 31, 2018:


($ amounts are per share)	Shares		Weighted Average Exercise Price	Weighted Average Remaining Actual Term		Aggregate Intrinsic Value
Options outstanding at January 1, 2018	89,300	$	$12.09
Issued	76,500		18.88
Exercised	(10,500)		12.88
Forfeited or expired	(5,550)		13.05
Options outstanding at December 31, 2018	149,750	$	15.50	6.7	$	-
Expected to vest	88,050	$	15.15	8.3	$	-
Exercisable at December 31, 2018	61,700	$	16.01	4.4	$	-

In the first quarter of 2018, officers and certain employees of the Company were granted 40,500 options. The plans generally provided for grants with the exercise price equal to fair value on the date of grant, graduated vesting periods of up to 5 years, and lives not exceeding 10 years. For the years ended 2018 and 2017 cash received for the exercise of stock options was $135,232 and $14,236, respectively.

In the first quarter of 2018, Board of Director members were granted 36,000 stock options that immediately vest and will expire in 5 years.

Restricted stock units and performance share units

The following table summarizes the status of the Company’s restricted stock units and performance share units and activity as of December 31, 2018:


	Restricted Stock Units			Performance Share Units
($ amounts are per share)	Quantity		Weighted-Average Grant Date Fair Value Per Share	Quantity		Weighted-Average Grant Date Fair Value Per Share
Nonvested at January 1, 2018	11,937	$	12.47	24,000	$	11.30
Granted	-		-	-		-
Vested	(5,187)		12.98	-		-
Forfeited	-		-	(24,000)		11.30
Nonvested at December 31, 2018	6,750	$	11.93	-	$	-

As of December 31, 2018, the total unrecognized compensation cost related to non-vested stock options and restricted stock units was $388,340 with a weighted-average expense recognition period of 4.1 years.

During the years ended December 31, 2018 and 2017, we issued 9,376 and 16,806 shares of common stock to members of our Board of Directors, respectively.