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Note 9 - Stock-based Compensation Plans and Warrants | 12 Months Ended
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Dec. 31, 2018
Notes to Financial Statements |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 9 – STOCK-BASED COMPENSATION PLANS AND WARRANTS The Company has issued options and has granted stock awards pursuant to its 2009 Equity Incentive Plan and 2014 Equity Incentive Plan, as described below. 2009 Equity Incentive Plan The 2009 Equity Incentive Plan was approved by stockholders at the 2009 Annual Meeting. The plan provides for the grant and issuance of up to 850,000 shares and options to the Company’s employees and consultants. The plan became effective when the Company filed a registration statement on Form S- 8 on December 18, 2009. All options issued under the 2009 Equity Incentive Plan have a ten -year term with vesting periods ranging from issuance date to 24 months. 2014 Equity Incentive Plan The 2014 Equity Incentive Plan was approved by stockholders at the June 10, 2014 Annual Meeting. The plan provides for the grant and issuance of up to 675,000 shares and options to the Company’s employees, directors and consultants. Upon approval of the 2014 Equity Incentive Plan, all shares of common stock that remained available for award under the 2009 Equity Incentive Plan were cancelled. Following registration of the 2014 Plan on Form S- 8, the Company entered into revised employment agreements with certain senior management that provided for the issuance of up to 162,500 Restricted Stock Units (“RSU’s”) during the period July 1, 2014 through December 31, 2016, and the issuance of up to 200,000 RSU’s in connection with obtaining construction financing for the Water Project (“Milestone RSUs”). The Milestone RSUs vested in June 2017, and the Company recorded stock compensation expense of $1.7 million during the year ended December 31, 2017, to reflect the issuance of these shares. Under the 2014 Equity Incentive Plan, each outside director receives $30,000 of cash compensation and receives a deferred stock award consisting of shares of the Company’s common stock with a value equal to $20,000 on June 30 of each year. The award accrues on a quarterly basis, with $7,500 of cash compensation and $5,000 of stock earned for each fiscal quarter in which a director serves. The deferred stock award vests automatically on January 31 in the year following the award date. All options that have been issued under the above plans have been issued to officers, employees and consultants of the Company. In December 2018, unexercised options to purchase 15,000 shares were forfeited under the 2009 Equity Incentive Plan. As of December 31, 2018, options to purchase 492,500 shares were unexercised and outstanding on December 31, 2018, under the 2009 and 2014 equity incentive plans. For consultants of the Company, the fair value of each option granted under the 2009 Equity Incentive Plan is estimated at each reporting period using the Black-Scholes option pricing model and recorded as a liability until the award is settled. For officers and employees of the Company, the fair value of each option granted under the plans was estimated on the date of grant using the Black-Scholes option pricing model. The risk-free interest rate is assumed to be equal to the yield of a U.S. Treasury bond of comparable maturity, as published in the Federal Reserve Statistical Release for the relevant date. The expected life estimate is based on an analysis of the employees receiving option grants and the expected behavior of each employee. The expected volatility is derived from an analysis of the historical volatility of the trading price per share of the Company’s common stock on the NASDAQ Global Market. The Company does not anticipate that it will pay dividends to common stockholders in the future. The Company recognized no stock-option-related compensation costs for the years ended December 31, 2018 and 2017 relating to these options. No stock options were exercised during 2018. No options were granted in 2018 and 2017. A summary of option activity under the plans as of December 31, 2018, and changes during the year ended December 31, 2017 are presented below:
|  |  |  |  |  |  |  |  |  | Average |  |  | Aggregate |
|  |  |  |  |  | Weighted- |  |  | Remaining |  |  | Intrinsic |
|  |  |  |  |  | Average |  |  | Contractual |  |  | Value |
|  | Shares |  |  | Exercise Price |  |  | Term |  |  | ($000’s) |
Outstanding at January 1, 2017 |  |  | 507,500 |  |  | $ | 11.66 |  |  |  | 3.3 |  |  | $ | 3,934 |
Granted |  |  | - |  |  | $ | - |  |  |  |  |  |  |  |  |
Forfeited, Expired or canceled |  |  | - |  |  | $ | - |  |  |  |  |  |  | $ | - |
Exercised |  |  | - |  |  | $ | - |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2017 |  |  | 507,500 |  |  | $ | 11.66 |  |  |  | 2.3 |  |  | $ | 3,934 |
Granted |  |  | - |  |  | $ | - |  |  |  |  |  |  |  |  |
Forfeited, Expired or canceled |  |  | 15,000 |  |  | $ | 11.75 |  |  |  |  |  |  | $ | 100 |
Exercised |  |  | - |  |  | $ | - |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2018 |  |  | 492,500 | (a) |  | $ | 11.66 |  |  |  | 1.3 |  |  | $ | 3,834 |
Options exercisable at December 31, 2018 |  |  | 492,500 |  |  | $ | 11.66 |  |  |  | 1.3 |  |  | $ | 3,834 |
Weighted-average years of remaining contractual life of options outstanding at December 31, 2018 |  |  | 1.3 |  |  |  |  |  |  |  |  |  |  |  |  |
| (a) | Exercise prices vary from $9.88 to $12.51, and expiration dates vary from January 2020 to December 2021.
Stock Awards to Directors, Officers, Consultants and Employees The Company has granted stock awards pursuant to its 2009 Equity Incentive Plan and 2014 Equity Incentive Plan. Of the total 850,000 shares reserved under the 2009 Equity Incentive Plan, 297,265 shares were issued as share grants and 507,500 were issued as options. Upon approval of the 2014 Equity Incentive Plan in June 2014, 45,235 shares remaining available for award under the 2009 Equity Incentive Plan were cancelled. Of the total 675,000 shares reserved under the 2014 Equity Incentive Plan, 641,668 shares have been awarded to the Company’s directors, consultants and employees. Of the 641,668 shares awarded, 10,224 shares were awarded for service during the plan year ended June 30, 2018, became effective on that date and vested on January 31, 2019. The accompanying consolidated statements of operations and comprehensive loss include approximately $473,000 and $2,304,000 of stock-based compensation expense related to stock awards in the years ended December 31, 2018 and 2017, respectively. A summary of stock awards activity under the plans during the years ended December 31, 2017 and 2018 is presented below:
|  |  |  |  |  | Weighted- |
|  |  |  |  |  | Average |
|  |  |  |  |  | Grant-date |
|  | Shares |  |  | Fair Value |
Nonvested at December 31, 2016 |  |  | 17,365 |  |  | $ | 5.76 |
Granted |  |  | 231,762 |  |  | $ | 13.22 |
Forfeited or canceled |  |  | - |  |  | $ | - |
Vested |  |  | (240,433 | ) |  | $ | 12.66 |
Nonvested at December 31, 2017 |  |  | 8,694 |  |  | $ | 13.81 |
Granted |  |  | 35,720 |  |  | $ | 12.67 |
Forfeited or canceled |  |  | - |  |  | $ | - |
Vested |  |  | (34,190 | ) |  | $ | 12.94 |
Nonvested at December 31, 2018 |  |  | 10,224 |  |  | $ | 12.71 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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