Subsequent Events

3 Months Ended

Mar. 31, 2015

Note 9 – Subsequent Events

From April 1 to May 1, 2015, the Company granted 300,200 stock options under the Plan to certain employees, including 200,000 stock options granted to its Chief Executive Officer, Stephen E. Pirnat. The stock options have exercise prices of $5.21 per share for 275,200 stock options and $5.07 per share for 25,000 stock options, the grant date fair values, contractual lives of 10 years, and vest over 2 years in the case of Mr. Pirnat’s stock options and over 4 years in the case of all other stock options. The fair value of stock options granted estimated on the date of grant using the Black-Scholes option valuation model was $882,000, which includes $589,000 for Mr. Pirnat’s stock options.

After taking into effect the stock options granted subsequent to March 31, 2015, the total unrecognized compensation cost related to non-vested stock option-based compensation arrangements granted under the Plan that is expected to be recognized in future years as follows:

2015	$	681,000
2016		592,000
2017		290,000
2018		84,000
2019		18,000
	$	1,665,000

Activity under the Plan from January 1 to May 1, 2015 is as follows:

Reserved but unissued shares under the Plan, January 1, 2015			242,764
Increases in the number of authorized shares under the Plan			312,292
Grants of stock options			(405,200)
Stock option forfeitures			77,875
Exercise of stock options			115,000
Stock grants			(4,188)
Reserved but unissued shares under the Plan, May 1, 2015			338,543