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Note 10 - Shareholders' Equity | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Shareholders' Equity and Share-based Payments [Text Block] | 10 . Shareholders’ Equity Repurchase Program During the year ended December 31, 2019, the Company repurchased and retired 683,910 shares of its common stock for $2,548,000. During the year ended December 31, 2018, the Company repurchased and retired 999,900 shares of its common stock for $3,580,000. As of December 31, 2019, the Company had $2,152,000 available to repurchase common shares under the repurchase program. Option A ctivity The 2004 Stock Option Plan (the “2004 Plan”) is an equity compensation plan that provides for grants of stock options to eligible individuals. The 2004 Plan is intended to recognize the contributions made to the Company by key employees of the Company, provide key employees with additional incentive to devote themselves to the future success of the Company and improve the ability of the Company to attract, retain and motivate individuals. The 2004 Plan also is intended as an incentive to certain members of the Board of Directors of the Company to continue to serve on the Board of Directors and to devote themselves to the future success of the Company. The 2004 Plan provides for a total of 5,000,000 common shares eligible for issuance. Under the 2004 Plan, approximately 5,009,750 options had been granted as of December 31, 2019. Under the 2004 Plan, option grants have a three -year vesting period and, since 2005, expire no later than the fifth anniversary from the date of grant. The exercise price of the options is determined based on the fair market value of the stock on the date of grant. The following table summarizes option activity for the years ended December 31, 2019 and 2018:
|  |  |  |  |  | Weighted |
|  |  |  |  |  | Average |
|  |  |  |  |  | Exercise Price |
|  | Shares |  |  | Per Option |
Options outstanding, December 31, 2017 |  |  | 884,998 |  |  | $ | 2.26 |
Granted to employees and directors |  |  | 349,750 |  |  |  | 3.27 |
Exercised |  |  | (211,835 | ) |  |  | 1.86 |
Canceled/expired/forfeited |  |  | - |  |  |  | - |
Options outstanding, December 31, 2018 |  |  | 1,022,913 |  |  |  | 2.69 |
Granted to employees and directors |  |  | 370,000 |  |  |  | 3.59 |
Exercised |  |  | (66,499 | ) |  |  | 1.96 |
Canceled/expired/forfeited |  |  | - |  |  |  | - |
Options outstanding, December 31, 2019 |  |  | 1,326,414 |  |  |  | 2.97 |
Options exercisable, December 31, 2019 |  |  | 694,914 |  |  |  | 2.51 |
Stock options to purchase 1,326,414 and 1,022,913 shares of common stock were outstanding as of December 31, 2019 and 2018, respectively. All except 455,000 and 145,000 of the stock options, which were anti-dilutive, were included in the computation of the weighted-average number of dilutive common shares outstanding for the years ended December 31, 2019 and 2018. The fair values of the share-based compensation awards granted were estimated using the Black-Scholes option-pricing model with the following assumptions and weighted average fair values:
|  | Stock Options |
|  | For the Years Ended December 31, |
|  | 2019 |  |  | 2018 |
Exercise price |  | $ | 3.59 |  |  | $ | 3.27 |
Risk-free interest rate |  |  | 2.23 | % |  |  | 2.73 | %
Expected volatility |  |  | 32.17 | % |  |  | 57.75 | %
Expected life in years |  |  | 4.25 |  |  |  | 4.25 |
Dividend rate |  |  | - |  |  |  | - |
Black-Scholes fair value |  | $ | 1.06 |  |  | $ | 1.57 |
The Company used the Black-Scholes option-pricing model to value the options. The Company uses historical data to estimate the expected term of the options. The risk-free interest rate for periods consistent with the expected term of the award is based on the U.S. Treasury rates in effect at the time of grant. The expected volatility is based on historical volatility. The Company uses an estimated dividend payout ratio of zero, as the Company has not paid dividends in the past and, at this time, does not expect to do so in the foreseeable future. The Company accounts for option forfeitures as they occur. The following table summarizes information about stock options as of December 31, 2019:
|  |  |  |  | Options Outstanding |  |  | Options Exercisable |
Range of Exercise Prices |  |  | Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contract Life (in years) |  |  | Aggregate Intrinsic Value |  |  | Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contract Life (in years) |  |  | Aggregate Intrinsic Value |
$1.58 | - | $3.90 |  |  |  | 1,326,414 |  |  | $ | 2.97 |  |  |  | 2.84 |  |  | $ | 604,000 |  |  |  | 694,914 |  |  | $ | 2.51 |  |  |  | 2.16 |  |  | $ | 636,000 |
The intrinsic value is the amount by which the market value of the underlying common stock exceeds the exercise price of the respective stock options. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2019 and 2018 was $121,000 and $356,000, respectively. As of December 31, 2019, $589,000 of total unrecognized compensation cost related to stock options was expected to be recognized over a weighted-average remaining period of 1.91 years. Cash received from 66,499 options exercised for the year ended December 31, 2019 was $130,000. Dividends The holders of the Company’s common stock are entitled to receive such dividends as may be declared by the Board of Directors of the Company from time to time to the extent that funds are legally available for payment thereof. The Company has never declared or paid any dividends on any of its outstanding shares of common stock. The Board of Directors’ current policy is not to pay dividends but rather to use available funds to repurchase common shares in accordance with the Company’s repurchase program and to fund the continued development and growth of the Company. Consequently, the Company currently has no plans to pay cash dividends in the foreseeable future.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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