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Note 12 - Share-Based Payments
 3 Months Ended
Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

12. SHARE-BASED PAYMENTS


(a)    Stock options


The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model, consistent with the guidance on stock compensation. Because option-pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options. The assumptions presented in the table below represent the weighted average of the applicable assumption used to value stock options at their grant date. The Company calculates expected volatility based on historical volatility of the Company's common shares. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on historical exercise experience. The Company evaluated historical exercise behavior when determining the expected term assumptions. The risk-free rate assumed in valuing the options is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The Company determines the expected dividend yield percentage by dividing the expected annual dividend by the market price of our common shares at the date of grant.


During the three months ended March 31, 2014, no stock options to purchase common shares were granted. During the three months ended March 31, 2013, stock options to purchase 37,500 common shares were granted.


Details of stock option transactions for the three months ended March 31, 2014 and March 31, 2013 are as follows:


 

 

Three months ended

March 31, 2014

 

 

Three months ended

March 31, 2013

 

 

 

Number of

Shares

 

 

Weighted

Average

exercise price

per share

 

 

Number of

Shares

 

 

Weighted

Average

exercise price

per share

 

Outstanding, beginning of period

 

 

1,407,639

  

  

$

3.80

  

  

  

2,148,170

  

  

$

2.56

 

Granted

 

 

—

 

 

 

—

 

 

 

37,500

 

 

 

5.76

 

Exercised

 

 

(291,913)

 

 

 

3.12

 

 

 

(14,214)

 

 

 

2.72

 

Forfeited

 

 

(5,594)

 

 

 

5.56

 

 

 

(3,453)

 

 

 

4.24

 

Expired

 

 

(2,875)

 

 

 

3.40

 

 

 

—

 

 

 

—

 

Outstanding, end of period

 

 

1,107,257 

 

 

$

3.97

 

 

 

2,168,003 

 

 

$

2.60

 

Options exercisable, end of period

 

 

753,506 

 

 

$

3.15

 

 

 

1,761,150 

 

 

$

2.28

 


As of March 31, 2014, the exercise prices, weighted average remaining contractual life and intrinsic values of outstanding options were as follows:


 

 

 

 

 

 

Options outstanding

 

 

Options exercisable

 

 

Exercise

price

 

Outstanding

Number

 

 

Weighted

average

exercise

price per

share

 

 

Weighted

Average

remaining

contractual

life (years)

 

 

Aggregate

intrinsic

value

 

 

Number

exercisable

 

 

Weighted

average

exercise

price per

share

 

 

Aggregate

intrinsic

value

 

$

 1.52

 -

 $

2.40

 

 

255,704

 

 

$

2.33

 

 

 

—

 

 

$

2,984,513

 

 

 

255,704

 

 

$

2.33

 

 

$

2,984,513

 

 $

 2.48

 -

 $

2.80

 

 

356,824

 

 

$

2.76

 

 

 

2.0

 

 

 

4,010,829

 

 

 

281,726

 

 

$

2.75

 

 

 

3,169,731

 

 $

 2.92

 -

 $

3.76

 

 

155,919

 

 

$

3.02

 

 

 

2.8

 

 

 

1,712,347

 

 

 

106,215

 

 

$

3.06

 

 

 

1,161,627

 

 $

 4.20

 -

 $

10.16

 

 

338,810

 

 

$

6.91

 

 

 

4.6

 

 

 

2,403,439

 

 

 

109,861

 

 

$

6.15

 

 

 

862,897

 

 

 

 

 

 

 

 

1,107,257

 

 

$

3.97

 

 

 

2.4

 

 

$

11,111,128

 

 

 

753,506

 

 

$

3.15

 

 

$

8,178,768

 


Total unrecognized compensation cost relating to unvested stock options at March 31, 2014, prior to the consideration of expected forfeitures, was approximately $793,000 and is expected to be recognized over a weighted average period of 2.0 years.


The Company recorded stock-based compensation of $100,977 and $74,842 for the three months ended March 31, 2014 and 2013, respectively.


The Company has not capitalized any stock-based compensation expense as part of the cost of an asset.