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Note 12 - Share-Based Payments

9 Months Ended

Sep. 30, 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.

Details of stock option transactions for the three months ended September 30, 2014 and September 30, 2013 are as follows:

	Three months ended September 30, 2014					Three months ended September 30, 2013
	Number of Shares			Weighted Average exercise price per share		Number of Shares			Weighted Average exercise price per share
Outstanding, beginning of period		1,052,308		$	4.01		2,117,121		$	2.84
Granted		98,100			15.83		22,500			8.92
Exercised		(134,199	)		2.56		(733,843	)		1.56
Forfeited		(8,938	)		6.15		(18,906	)		4.88
Expired		—			—		(1,187	)		1.44
Outstanding, end of period		1,007,271		$	5.34		1,385,685		$	3.64
Options exercisable, end of period		732,683		$	3.84		1,049,810		$	3.12

Details of stock option transactions for the nine months ended September 30, 2014 and September 30, 2013 are as follows:

	Nine months ended September 30, 2014					Nine months ended September 30, 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		98,100			15.83		142,876			7.88
Exercised		(474,220	)		2.92		(877,986	)		1.64
Forfeited		(20,623	)		5.86		(26,188	)		4.84
Expired		(3,625	)		3.36		(1,187	)		1.44
Outstanding, end of period		1,007,271		$	5.34		1,385,685		$	3.64
Options exercisable, end of period		732,683		$	3.84		1,049,810		$	3.12

As of September 30, 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
$	2.40	-	$	2.40		124,750	$	2.40		0.6	$	1,563,118		124,750	$	2.40	$	1,563,118
$	2.48	-	$	2.80		326,263	$	2.76		2.3		3,970,110		326,263	$	2.76		3,970,110
$	2.92	-	$	3.76		139,408	$	3.01		3.1		1,662,210		115,160	$	3.02		1,370,992
$	4.20	-	$	15.93		416,850	$	9.01		5.1		2,554,844		166,510	$	7.58		1,236,775
						1,007,271	$	5.34		3.4	$	9,750,282		732,683	$	3.84	$	8,140,995

Total unrecognized compensation cost relating to unvested stock options at September 30, 2014, prior to the consideration of expected forfeitures, was approximately $1,144,377 and is expected to be recognized over a weighted average period of 2.6 years.

The Company recorded stock-based compensation of $230,712 and $162,786 for the three months ended September 30, 2014 and 2013, respectively.

The Company recorded stock-based compensation of $417,046 and $328,883 for the nine months ended September 30, 2014 and 2013, respectively.

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

- 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.

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