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9. Non-Cash Share-Based Employee Compensation

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

NOTE 9 - Non-Cash Share-Based Employee Compensation

The Company has an employee and non-employee director share-based incentive compensation plan. Related to these programs, the Company recorded non-cash share-based employee compensation expense of $21 for the three months ended March 31, 2018, compared with $2 for the same period last year. The Company considers its non-cash share-based employee compensation expenses as a component of cost of products and selling, general and administrative expenses. There was no non-cash share-based employee compensation expense capitalized as part of capital expenditures or inventory for the periods presented.

The Company uses the Black-Scholes-Merton option valuation model to calculate the fair value of a stock option grant. The non-cash share-based employee compensation expense recorded in the three months ended March 31, 2018 was calculated using certain assumptions. Such assumptions are described more comprehensively in Note 10 (Share-Based Employee Compensation) of the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

A summary of activity under the Company’s stock option plans during the three months ended March 31, 2018 is presented below:

As of January 1, 2018		Stock Options				Wgt. Avg. Exercise Price ($) Per Share				Wgt. Avg. Remaining Contractual Life (Years)				Wgt. Avg. Grant Date Fair Value ($) Per Share				Aggregate Intrinsic Value ($)
Outstanding			354,500				4.46				—				1.79				—
Vested			113,000				3.75				—				2.23				—
Nonvested			241,500				4.80				—				1.58				—

Period activity
Issued			90,000				3.75				—				1.64				—
Exercised			—				—				—				—				—
Forfeited			6,000				5.10				—				1.37				—
Expired			—				—				—				—				—

As of March 31, 2018
Outstanding			438,500				4.31				7.66				1.76				64,260
Vested			146,500				4.04				4.27				2.04				45,540
Nonvested			292,000				4.44				9.36				1.62				18,720

Restricted Stock Units

On June 15, 2017, the Company granted to each non-employee director restricted stock units with a grant fair value of $20 per award, which will vest on June 15, 2018, subject to continued service through such vesting date.