Stock Based Compensation

6 Months Ended

Jun. 30, 2015

Note 4 – Stock Based Compensation

Accounting standards require companies to recognize the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant.

Note 4 – Stock Based Compensation (continued)

Stock option plan activity for the six months ended June 30, 2015 is summarized below:


			Weighted
		Weighted	Average
		Average	Remaining
		Exercise	Contractual	Intrinsic
	Shares	Price	Life (in years)	Value

Options outstanding, January 1, 2015	69,372	$ 11.44
Exercised	-	-
Forfeited	(2,796)	10.88
Options outstanding, June 30, 2015	66,576	11.46	0.50	$ -
Options exercisable, June 30, 2015	66,576	$ 11.46	0.50	$ -

Intrinsic value is calculated by subtracting the exercise price of option shares from the market price of underlying shares as of June 30, 2015 and multiplying that amount by the number of options outstanding. No intrinsic value exists where the exercise price is greater than the market price on a given date.

All compensation expense related to the foregoing stock option plan has been recognized. The Company’s ability to grant additional options shares under the 1999 Plan has expired.