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8. Stockholders' Equity | 3 Months Ended
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Mar. 31, 2020
Stockholders' Equity |
8. Stockholders' Equity | Dividends Declared and Paid Dividends declared and paid on Common Stock were $675,960 and $1,075,962 for the three months ended March 31, 2020 and 2019, respectively. The Company’s Board of Directors approved a quarterly dividend on May 6, 2020 of $.04 per share payable in cash on June 15, 2020 to stockholders of record as of May 29, 2020 (see Note 13 - Subsequent Events). Stock Options Effective August 12, 2014, the Company adopted the 2014 Equity Participation Plan (the “2014 Plan”) pursuant to which, a maximum of 700,000 shares of Common Stock of the Company are authorized to be issued pursuant to the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock and stock bonuses. Incentive stock options granted under the 2014 Plan expire no later than ten years from the date of grant (except no later than five years for a grant to a 10% stockholder). The Board of Directors or the Compensation Committee determines the expiration date with respect to non-statutory stock options and the vesting provisions for restricted stock granted under the 2014 Plan. The results of operations for the three months ended March 31, 2020 and 2019 include stock-based compensation expense for stock options totaling approximately $17,000 and $1,000, respectively. Stock-based compensation expense related to stock options is net of estimated forfeitures of approximately 16% for the three months ended March 31 2020 and 2019. Such amounts have been included in the consolidated statements of operations and comprehensive loss within other operating expenses. The weighted average estimated fair value of stock options granted during the three months ended March 31, 2020 was $1.66 per share. No options were granted during the three months ended March 31, 2019. The fair value of stock options at the grant date was estimated using the Black-Scholes option-pricing model. The following weighted average assumptions were used for grants during the following periods:
| Three months ended
| March 31,
| 2020 |  | 2019
Dividend Yield | 3.14% |  | n/a
Volatility | 37.69% |  | n/a
Risk-Free Interest Rate | 1.40% |  | n/a
Expected Life | 2.75 years |  | n/a
The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of the Company’s stock options. A summary of stock option activity under the Company’s 2014 Plan for the three months ended March 31, 2020 is as follows:
Stock Options | Number of Shares |  | Weighted Average Exercise Price per Share |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at January 1, 2020 | 82,000 |  | $ 8.61 |  | 3.38 |  | $ -
Granted | 74,523 |  | $ 7.96 |  | 4.84 |  | $ -
Exercised | - |  | $ - |  | - |  | $ -
Forfeited | - |  | $ - |  | - |  | $ -
Outstanding at March 31, 2020 | 156,523 |  | $ 8.30 |  | 3.94 |  | $ -
Vested and Exercisable at March 31, 2020 | 50,000 |  | $ 8.45 |  | 1.84 |  | $ -
The aggregate intrinsic value of options outstanding and options exercisable at March 31, 2020 is calculated as the difference between the exercise price of the underlying options and the market price of the Company’s Common Stock for the options that had exercise prices that were lower than the $5.11 closing price of the Company’s Common Stock on March 31, 2020. No options were exercised or forfeited during the three months ended March 31, 2020. Participants in the 2014 Plan may exercise their outstanding vested options, in whole or in part, by having the Company reduce the number of shares otherwise issuable by a number of shares having a fair market value equal to the exercise price of the option being exercised (“Net Exercise”), or by exchanging a number of shares owned for a period of greater than one year having a fair market value equal to the exercise price of the option being exercised (“Share Exchange”). As of March 31, 2020, the estimated fair value of unamortized compensation cost related to unvested stock option awards was approximately $138,000. Unamortized compensation cost as of March 31, 2020 is expected to be recognized over a remaining weighted-average vesting period of 1.89 years. As of March 31, 2020, there were 66,600 shares reserved for grants under the 2014 Plan. Restricted Stock Awards A summary of the restricted Common Stock activity under the Company’s 2014 Plan for the three months ended March 31, 2020 is as follows:
Restricted Stock Awards | Shares |  | Weighted Average Grant Date Fair Value per Share |  | Aggregate Fair Value
Balance at January 1, 2020 | 213,929 |  | $ 16.51 |  | $ 3,554,174
Granted | 199,812 |  | $ 7.94 |  | $ 1,586,507
Vested | (38,866) |  | $ 18.90 |  | $ (734,467)
Forfeited | (3,046) |  | $ 15.15 |  | $ (46,135)
Balance at March 31, 2020 | 371,829 |  | $ 12.21 |  | $ 4,360,079
Fair value was calculated using the closing price of the Company’s Common Stock on the grant date. For the three months ended March 31, 2020 and 2019, stock-based compensation for these grants was approximately $472,000 and $309,000, respectively, which is included in other operating expenses on the accompanying condensed consolidated statements of operations and comprehensive loss. These amounts reflect the Company’s accounting expense and do not correspond to the actual value that will be recognized by the directors, executives and employees.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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