XML 61 R15.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Note 9 - Employee Stock Option Plans | 12 Months Ended
--- | ---
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 9. EMPLOYEE STOCK OPTION PLANS: The Company accounts for compensation expense associated with Stock Options based on the fair value of the options on the date of grant. The Company used the modified transition method to establish the beginning balance of the additional paid-in capital pool related to the tax effects of employee share-based compensation, which is available to absorb tax deficiencies recognized subsequent to the adoption of the fair value method. The Company’s net income (loss) for the years ended December 31, 2014, 2013 and 2012, include approximately $468,000, $380,000 and $383,000 of stock based compensation expense, respectively. The Company recorded reductions in income tax payable of approximately $513,000, $266,000 and $528,000 for the years ended December 31, 2014, 2013 and 2012, respectively, as a result of the tax benefit upon exercise of options. The compensation expense related to the Company’s stock-based compensation arrangements is recorded as a component of selling, general and administrative expenses. Cash flows resulting from tax deductions in excess of the cumulative compensation cost recognized from options exercised (excess tax benefits) is classified as cash inflows from financing activities and cash inflows from operating activities. In 2000, the Company adopted the Performance Equity Plan 2000 (the “2000 Plan”). The 2000 Plan, as amended, reserved 1,230,000 common shares for issuance. The 2000 Plan provides for the issuance of either incentive stock options or nonqualified stock options to employees, consultants or others who provide services to the Company. The options’ exercise price is equal to the closing price of the Company’s shares on the day of issuance, except for incentive stock options granted to the Company’s president, which are exercisable at 110% of the closing price of the Company’s shares on the date of issuance. In 2009, the Company adopted the Performance Equity Plan 2009 (the “2009 Plan”). The 2009 Plan reserved 500,000 common shares for issuance. The 2009 Plan provides for the issuance of either incentive stock options or nonqualified stock options to employees, consultants or others who provide services to the Company. The options’ exercise price is equal to the closing price of the Company’s shares on the day of issuance, except for incentive stock options granted to any person possessing more than 10% of the total combined voting power of all classes of Company stock, which are exercisable at 110% of the closing price of the Company’s shares on the date of issuance. The Company has 175,416 options available for grant under the 2009 Plan. The estimated fair value of each option award granted was determined on the date of grant using the Black-Scholes option valuation model. The following weighted average assumptions were used for option grants during the years ended December 31, 2014, 2013 and 2012:
|  | 2014 |  |  | 2013 |  |  | 2012 |
Risk-free interest rate |  |  | 1.45% |  |  |  | 0.72% |  |  |  | 0.90% |
Expected volatility |  |  | 102.0% |  |  |  | 106.0% |  |  |  | 101.8% |
Dividend yield |  |  | 0% |  |  |  | 0% |  |  |  | 0% |
Expected option term-in years |  |  | 5 |  |  |  | 5 |  |  |  | 5 |
The risk free interest rate for the years ended December 31, 2014, 2013 and 2012 is based on the 5 year U.S. Treasury note rate on the day of grant. The expected volatility computation for the years ended December 31, 2014, 2013 and 2012 is based on the average of the volatility over the most recent five year period, which represents the Company’s estimate of expected volatility over the expected option term. The Company has never paid a dividend, and is not expected to pay a dividend in the foreseeable future, therefore the dividend yield is assumed to be zero. The Company assumes zero forfeitures of options as the historical forfeiture rate is below 1%. A summary of the status of the Company’s stock option plans is as follows:
Fixed Options |  | Options |  |  | Weighted average Exercise Price |  |  | Weighted average remaining contractual term (in years) |  |  | Aggregate Intrinsic Value |
Outstanding at January 1, 2012 |  |  | 695,000 |  |  | $ | 8.33 |  |  |  | 2.66 |  |  |  |  |
Granted during period |  |  | 40,517 |  |  |  | 11.87 |  |  |  |  |  |  |  |  |
Exercised |  |  | (240,000 | ) |  |  | 6.85 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2012 |  |  | 495,517 |  |  | $ | 9.33 |  |  |  | 2.73 |  |  |  |  |
Granted during period |  |  | 46,402 |  |  |  | 10.64 |  |  |  |  |  |  |  |  |
Exercised |  |  | (45,000 | ) |  |  | 6.70 |  |  |  |  |  |  |  |  |
Forfeited/Expired |  |  | (35,000 | ) |  |  | 8.20 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2013 |  |  | 461,919 |  |  |  | 9.80 |  |  |  | 2.28 |  |  |  |  |
Granted during period |  |  | 43,064 |  |  |  | 14.67 |  |  |  |  |  |  |  |  |
Exercised |  |  | (155,000 | ) |  |  | 8.52 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2014 |  |  | 349,983 |  |  |  | 10.97 |  |  |  | 2.20 |  |  |  | 387,146 |
Vested at December 31, 2014 |  |  | 349,983 |  |  |  | 10.97 |  |  |  | 2.20 |  |  |  | 387,146 |
The weighted-average fair value of each option granted during the years ended December 31, 2014, 2013 and 2012, estimated as of the grant date using the Black-Scholes option valuation model was $10.86, $8.17 and $8.91, respectively. The Company’s stock options granted to non-employee directors vest immediately upon grant and have a maximum contractual term of five years. Stock options granted to employees vest over three years and have a maximum contractual term of ten years. The expected option term is calculated utilizing historical data of option exercises. During the year ended December 31, 2014, 50,000 stock options were exercised for cash, resulting in proceeds to the Company of $447,751. During the same period, 105,000 options were exercised, pursuant to provisions of the stock option plan, where the Company received no cash and 69,687 shares of its common stock in exchange for the 105,000 shares issued in the exercise. The 69,687 shares that the Company received were valued at $873,390, the fair market value of the shares on the dates of exercise. During the years ended December 31, 2014, 2013 and 2012, the Company recognized a tax benefit of $86,000, $27,000 and $313,000, respectively, from the exercise of stock options. The intrinsic value of stock options exercised during the years ended December 31, 2014, 2013 and 2012 was approximately $679,000, $266,000 and $1,337,000, respectively. The fair value of all options vested during the years ended December 31, 2014, 2013 and 2012 was approximately $387,000, $2,472,000 and $859,000, respectively.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration