STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2018

(6)

STOCKHOLDERS’ EQUITY

Common Stock Dividend

Our Board of Directors declared a cash dividend of $0.07 per share on November 6, 2018. The dividend is payable on January 18, 2019 to shareholders of record as of January 2, 2019. An accrued dividend as of December 31, 2018 was $2.3 million.

Any determination to declare a future quarterly dividend, as well as the amount of any cash dividend which may be declared, will be based on our financial position, earnings, earnings outlook and other relevant factors at that time.

Treasury Stock

From December 6, 2017 through March 6, 2018, we had the ability through our stock purchase program to re-purchase our common stock at prevailing market prices either in the open market or through privately negotiated transactions up to $2.0 million. On March 6, 2018, we reached the limit of $2.0 million and share re-purchases were ceased. From the inception of the plan through March 6, 2018, we purchased 495,091 shares of our common stock for $2.0 million or an average price of $4.04 per share.

On May 14, 2018, our Board of Directors approved a new program to buy back an additional $2.0 million of our common stock at prevailing market prices either in the open market or through privately negotiated transactions through May 13, 2019. From the inception of the plan through December 31, 2018 the Company purchased 524,129 shares of our common stock for $1.5 million or an average price of $3.20 per share.

For the year ended December 31, 2018 the Company purchased a total of 932,383 shares of our common stock for $3.4 million or an average price $3.68 per share.

Warrants

In October 2017,

150,000

common stock warrants were issued in exchange for professional services.

In connection with the agreement entered into on March 28, 2016, with Triumph Bank, the Lender suspended this monthly payment requirement for February, March and April of 2016 up to an aggregate cap of $250,000, in exchange for the issuance of a common stock warrant to purchase 50,000 shares of the Company’s common stock.

A summary of stock warrant activity for the years ended December 31, 2018 and 2017 are presented below:

	Number of Warrants (in thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2016		52		$	0.21			$	-
Granted		150		$	2.42
Exercised		(2	)	$	0.35
Forfeited		-		$	-
Outstanding at December 31, 2017		200		$	1.86		5.86	$	264

Outstanding at December 31, 2017		200		$	1.86
Granted		-			-
Exercised		(50	)	$	0.20
Forfeited		-		$	-
Outstanding and Exercisable at December 31, 2018		150		$	2.42		5.77	$	79

The Company uses the Black Scholes option pricing model to determine the fair value of common stock warrants, using the following assumptions during the years ended December 31, 2018 and 2017:

	2018		2017
Weighted average expected term		-		4.38 years
Weighted average volatility		-		136.62	%
Weighted average risk-free interest rate		-		1.51	%
Dividend yield		-		0	%