Note 14 - Share-based Payments

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

14. 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, 2016 and September 30, 2015 are as follows:

	Three months ended					Three months ended
	September 30, 2016					September 30, 2015
	Number of shares			Weighted average exercise price per share		Number of shares			Weighted average exercise price per share

Outstanding, beginning of period		502,590		$	11.30		827,076		$	6.69
Granted		18,750			27.53		22,500			24.96
Exercised		(31,065	)		3.80		(41,404	)		4.59
Forfeited		-			-		(3,677	)		9.63
Expired		-			-		-			-
Outstanding, end of period		490,275			12.39		804,495			7.30
Options exercisable, end of period		306,553		$	9.16		580,721		$	4.85

Details of stock option transactions for the nine months ended September 30, 2016 and September 30, 2015 are as follows:

	Nine months ended					Nine months ended
	September 30, 2016					September 30, 2016
	Number of shares			Weighted average exercise price per share		Number of shares			Weighted average exercise price per share

Outstanding, beginning of period		513,366		$	9.24		976,062		$	6.23
Granted		81,750			22.66		67,500			21.26
Exercised		(94,602	)		3.75		(229,057	)		3.22
Forfeited		(9,489	)		17.23		(8,135	)		11.43
Expired		(750	)		3.76		(1,875	)		2.40
Outstanding, end of period		490,275			12.39		804,495			7.30
Options exercisable, end of period		306,553		$	9.16		580,721		$	4.85

As of September 30, 2016, the exercise prices, weighted average remaining contractual life and intrinsic values of outstanding options were as follows:

			Options outstanding								Options exercisable
Exercise price			Number outstanding		Weighted average exercise price per share		Weighted average remaining contractual life (years)		Aggregate intrinsic value		Number exercisable		Weighted average exercise price per share		Weighted average remaining contractual life (years)		Aggregate intrinsic value

$ 2.80	-	$ 4.48		63,920	$	2.99		1.4	$	1,854,420		63,920	$	2.99		1.4	$	1,854,420
$ 5.52	-	$ 8.92		174,680		6.62		2.7		4,432,845		151,258		6.50		2.5		3,857,578
$ 10.16	-	$14.67		29,375		10.83		4.0		621,819		10,625		12.02		3.7		212,319
$ 15.51	-	$19.95		131,800		17.36		4.8		1,929,101		62,000		16.76		4.5		944,965
$ 21.10	-	$27.53		90,500		23.43		5.5		775,353		18,750		24.96		3.9		132,000
				490,275	$	12.39		3.7	$	9,613,538		306,553	$	9.16		2.8	$	7,001,282

Total unrecognized compensation cost relating to unvested stock options at September 30, 2016, prior to the consideration of expected forfeitures, was approximately $1,448,580 and is expected to be recognized over a weighted average period of 2.0 years.

The Company recorded stock-based compensation of $195,439 and $585,854 for the three and nine months ended September 30, 2016 and $128,575 and $378,228 for the three and nine months ended September 30, 2015, 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.

+ References + Details