XML 24 R13.htm IDEA: XBRL DOCUMENT v3.4.0.3
Stock Options and Stock-Based Compensation
 3 Months Ended
Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Options and Stock-Based Compensation
Stock Options and Stock-Based Compensation
At the 2010 Annual Meeting, shareholders approved the 2010 Equity Incentive Plan (the "2010 Plan"). This reserves 400,000 shares of common stock for issuance in connection with stock options, restricted stock awards and other equity based awards to attract and retain the best available personnel, provide additional incentive to officers, employees and non-employee Directors and promote the success of our business. Such grants and awards will be structured in a manner that does not encourage the recipients to expose the Company to undue or inappropriate risk. Options issued under the 2010 Plan will qualify for treatment as incentive stock options for purposes of Section 422 of the Internal Revenue Code. Other compensation under the 2010 Plan will qualify as performance-based for purposes of Section 162(m) of the Internal Revenue Code, and will satisfy NASDAQ guidelines relating to equity compensation.






As of March 31, 2016, 108,710 shares of restricted stock had been granted under the 2010 Plan, of which 67,064 shares remain restricted as of March 31, 2016 as detailed in the following table:
Year
Granted
Vesting Term
(In Years)
Shares
Remaining Term
(In Years)
2012
5.0
7,996

0.8
2013
5.0
14,776

1.8
2014
5.0
10,422

2.8
2015
5.0
12,023

3.8
2016
1.0
6,832

0.8
2016
5.0
15,015

4.8
 
 
67,064

2.8

The compensation cost related to these restricted stock grants is $1,140,000 and will be recognized over the vesting terms of each grant. In the three months ended March 31, 2016, $49,000 of expense was recognized for these restricted shares, leaving $706,000 in unrecognized expense as of March 31, 2016. In the three months ended March 31, 2015, $74,000 of expense was recognized for restricted shares, leaving $567,000 in unrecognized expense as of March 31, 2015.
The Company established a shareholder-approved stock option plan in 1995 (the "1995 Plan"), under which the Company granted options to employees for 600,000 shares of common stock. Only incentive stock options were granted under the 1995 Plan. The option price of each option grant was determined by the Options Committee of the Board of Directors, and in no instance was less than the fair market value on the date of the grant. An option's maximum term was ten years from the date of grant, with 50% of the options granted vesting two years from the date of grant and the remaining 50% vesting five years from the date of grant. As of January 16, 2005, all options under the 1995 Plan had been granted, and as of January 16, 2015, all options granted under the 2015 plan had been exercised or expired.