NOTE (9) – Stock-based Compensation

On July 25, 2018, the stockholders approved the 2018 Long-Term Incentive Plan ("2018 LTIP"). The 2018 LTIP permits the grant of non-qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards. The plan is in effect for ten years. The maximum number of shares that can be awarded under the plan is 1,293,109 shares of common stock. As of June 30, 2020, 630,080 shares had been awarded and 663,029 shares are available under the 2018 LTIP.

In February 2020 and January 2019, the Company awarded 30,930 and 42,168 shares of common stock, respectively, to its directors under the 2018 LTIP, which are fully vested. The Company recorded $45 thousand and $52 thousand of compensation expense for the quarters ended March 31, 2020 and March 31, 2019, respectively, based on the fair value of the stock, which was determined using the average of the high and the low price of the stock on the date of the award.

In February 2020 and 2019, the Company awarded 140,218 shares and 428,797 shares, respectively, of restricted stock to its officers and employees under the 2018 LTIP. Each restricted stock award is valued based on the fair value of the stock, which was determined using the average of the high and the low price of the stock on the date of the award. These awarded shares of restricted stock are fully vested over a two-year period from their respective dates of grants. Stock based compensation expense is recognized on a straight-line basis over the vesting period. During the three and six months ended June 30, 2020, the Company recorded $90 and $161 thousand of stock based compensation expense related to these awards, respectively. As of June 30, 2020, unrecognized compensation cost related to non-vested restricted stock awards was $320 thousand which is expected to be recognized over a period of 20 months.

No stock options were granted during the three and six months ended June 30, 2020 and 2019.

The following table summarizes stock option activity during the six months ended June 2020 and 2019:


	Six Months Ended			Six Months Ended
	June 30, 2020			June 30, 2019
		Weighted			Weighted
		Average			Average
	Number	Exercise		Number	Exercise
	Outstanding	Price		Outstanding	Price
Outstanding at beginning of period	455,000	$	1.67	537,500	$	2.19
Granted during period	—		—	—		—
Exercised during period	—		—	—		—
Forfeited or expired during period	(5,000)		6.00	(82,500)		4.89
Outstanding at end of period	450,000	$	1.62	455,000	$	1.67
Exercisable at end of period	360,000	$	1.62	275,000	$	1.70

The Company recorded $10 thousand and $19 thousand of stock-based compensation expense related to stock options during the three and six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, the unrecognized compensation cost related to nonvested stock options granted under the plan was $26 thousand. The cost is expected to be recognized over a period of 8 months.

Options outstanding and exercisable at June 30, 2020 were as follows:

Outstanding

Exercisable

Weighted

Average

Weighted

Remaining

Average

Aggregate

Average

Aggregate

Number

Contractual

Exercise

Intrinsic

Number

Exercise

Intrinsic

Grant Date

Outstanding

Life

Price

Value

Outstanding

Price

Value

February 24, 2016

450,000

5.65 years

1.62

360,000

1.62

450,000

5.65 years

1.62

176

360,000

1.62

176