Note 5 - Equity Incentive Plan

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5. Equity Incentive Plan

The Company estimates the fair value of stock options and stock appreciation rights using the Black-Scholes valuation model. Fair value of restricted stock is measured by the grant-date price of the Company’s shares. The fair value of each stock option award during the three and nine-month periods ended September 30, 2014 and 2013, respectively, was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions:

	Three Months Ended September 30,
	2014			2013
Risk free interest rate	1.30%	-	1.39%		-
Expected volatility		53.28%			-
Expected lives (years)		4			-
Expected dividend yield		0.00%			-

	Nine Months Ended September 30,
	2014			2013
Risk free interest rate	1.16%	-	1.39%	0.61%	-	0.70%
Expected volatility		53.28%			57.60%
Expected lives (years)		4			4
Expected dividend yield		0.00%			0.00%

The Company recorded $390,578 and $368,603 of share-based compensation expense for the three-month periods ended September 30, 2014 and 2013, respectively, for equity compensation awards. The Company recorded $1,196,361 and $1,156,929 of share-based compensation expense for the nine-month periods ended September 30, 2014 and 2013, respectively, for equity compensation awards. The Company presents the expenses related to stock-based compensation awards in the same expense line items as cash compensation paid to the respective recipients.

There were 7,000 and 139,240 stock options granted under the Plan during the three and nine-month periods ended September 30, 2014, respectively. There were no Restricted Stock Awards (“RSAs”) or Restricted Stock Units (“RSUs”) granted under the Plan during the three-month period ended September 30, 2014. There were 9,365 RSUs granted to members of the Company’s Board of Directors under the Plan during the nine-month period ended September 30, 2014. There were 30,700 RSAs granted to Company employees under the Plan during the nine-month period ended September 30, 2014. The stock options, RSAs and RSUs granted to employees and directors become exercisable or vest ratably over four years from the date of grant.

A portion of the stock options granted during the nine-month period ended September 30, 2014 contained certain performance features, as compared to established targets, in addition to time-based vesting conditions. The compensation costs associated with these grants was estimated using the Black-Scholes valuation method factored for the estimated probability of achieving the performance goals.

As of September 30, 2014, there was approximately $4.2 million of total unrecognized compensation cost related to non-vested stock options, stock appreciation rights (“SARs”), RSAs and RSUs granted under the Company’s incentive Plans. This cost is expected to be recognized over a weighted-average period of 3.0 years.

The total intrinsic value of stock options and SARs exercised during the nine-month periods ended September 30, 2014 and 2013 was $25,473,089 and $4,095,833, respectively. Cash received from the exercise of stock options during the three and nine-month periods ended September 30, 2014 and 2013 were $17,513 and $1,379,294, and $1,804,773 and $2,932,649, respectively. During the second quarter of 2014, the Company acquired and subsequently retired 133,774 common shares related to an employee SARs exercise, to meet minimum statutory tax withholding requirements.

There were 936,097 options and SARs outstanding under the Company’s incentive Plans as of September 30, 2014 with a weighted-average exercise price of $13.54 per share, an aggregate intrinsic value of approximately $21.8 million, and a weighted-average remaining contractual term of 6.8 years. None of the options or SARs outstanding at September 30, 2014 or 2013, respectively, had cash-settlement features.

The Company may satisfy the awards upon exercise, or upon fulfillment of the vesting requirements for other equity-based awards, with either authorized but unissued shares or shares reacquired by the Company. Stock-based awards are granted with an exercise price equal to the market price of the Company’s stock on the date of grant. Awards containing service conditions generally become exercisable ratably over one to four years, have a ten year contractual term and sometimes contain performance conditions.