Note 13: Equity Compensation Plans

The Company’s 2008 Equity Incentive Plan was in effect for years prior to 2014, and authorized the issuance of the Company’s common stock, which included share grants in the form of qualified stock options, non-qualified stock options, restricted stock, restricted stock units and stock appreciation rights. Under the 2008 Equity Incentive Plan, stock based awards were eligible to be granted to selected directors, officers or employees at the discretion of the Board of Directors. All stock options granted under the 2008 Incentive Plan have vested; however, all such options issued prior to 2009 have expired as of December 31, 2017. The Company granted 16,500 stock options in 2009 under the 2008 Equity Incentive Plan, 4,500 of which are vested and outstanding as of December 31, 2018. The stock option awards had a vesting period of three years, and a term of ten years. No other stock options were granted in 2009 through 2018. There were 4,500 stock options exercised during 2018, no stock options exercised during 2017 and 1,500 stock options exercised during 2016. At December 31, 2018, the Company had no unrecognized compensation cost related to unvested stock options as all stock options have fully vested.

A summary of stock option activity in the Plans for the years ending December 31, 2018, is as follows:


				Weighted-
		Weighted		Average
		Average		Remaining
		Exercise Price		Contractual	Aggregate
	Shares	per Share		Term (years)	Intrinsic Value
Beginning outstanding	9,000	$	7.49	1.1	$	55
Canceled	-		-	-		-
Exercised	(4,500)		7.49	-		(27)
Expired	-		-	-		-
Ending outstanding	4,500	$	7.49	0.1	$	25

Exercisable at end of period	4,500	$	7.49	0.1	$	25

A summary of stock option activity as of each year is as follows:


		2018		2017		2016
Intrinsic value of options exercised	$	27	$	-	$	3
Cash received from option exercises		33		-		11
Tax benefit realized from option exercises		5		-		-
Weighted average fair value of options granted		-		-		-

There are stock-based awards outstanding under the Company’s 2008 Equity Incentive Plan (the “2008 Plan”) and the Company’s 2014 Equity Incentive Plan, as amended (the “2014 Plan,” and together with the 2008 Plan, the “Plans”). The 2014 Plan was approved at the 2014 annual meeting of stockholders; a maximum of 375,000 shares were authorized to be issued under this plan. Following approval of the 2014 Plan, no further awards will be granted under the 2008 Plan or any other Company equity compensation plan. At the May 2016 annual stockholders meeting, an amendment to the 2014 Plan authorized an additional 600,000 shares to be issued, which resulted in a total of 975,000 shares authorized for issuance under this plan. The Plans authorize the granting of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights. Awards may be granted to selected directors and officers or employees under the 2014 Plan at the discretion of the Compensation Committee of the Company’s Board of Directors. As of December 31, 2018, 169,791 shares remained available for issuance under the 2014 Plan.

Total compensation cost that has been charged for the 2014 Plan was $2.3 million, $1.2 million and $657,000 for the years ending December 31, 2018, 2017 and 2016 respectively.

Under the 2014 Plan, upon a change in control of the Company, if (i) the 2014 Plan is not an obligation of the successor entity following the change in control, or (ii) the 2014 Plan is an obligation of the successor entity following the change in control and the participant incurs an involuntary termination, then the stock options, stock appreciation rights, stock awards and cash incentive awards under the 2014 Plan will become fully exercisable and vested. Performance-based awards generally will vest based upon the level of achievement of the applicable performance measures through the change in control.

Restricted stock awards under the 2014 Plan generally entitle holders to voting and dividend rights upon grant and are subject to forfeiture until certain restrictions have lapsed including employment for a specific period. Restricted stock units under the Plans are also subject to forfeiture until certain restrictions have lapsed including employment for a specific period but do not entitle holders to voting rights until the restricted period ends and shares are transferred in connection with the units.

There were 254,281 restricted awards issued during the year ending December 31, 2018. There were 161,500 restricted awards issued during the year ending December 31, 2017. Compensation expense is recognized over the vesting period of the restricted award based on the market value of the award on the issue date.

A summary of changes in the Company’s unvested restricted awards for the years ending December 31, 2018, is as follows:


	December 31, 2018
		Weighted
	Restricted	Average
	Stock Shares	Grant Date
	and Units	Fair Value
Unvested at January 1	465,000	$	7.79
Granted	254,281		13.98
Vested	(167,000)		5.60
Forfeited	-		-
Unvested at December 31	552,281	$	11.31

Total unrecognized compensation cost of restricted awards was $3.0 million as of December 31, 2018, which is expected to be recognized over a weighted-average period of 1.80 years.