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Note 3 - Stock-Based Compensation
 3 Months Ended
Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

3.

STOCK-BASED COMPENSATION


We have one stock option plan which provides for annual stock option grants to non-employee directors with an exercise price equal to the fair market value of the shares at the date of grant. Under this plan, 12,000 options were awarded to directors during the quarter ended March 31, 2013. These options vest and become exercisable six months from the option grant date. Options outstanding and exercisable were granted at a stock option price which was not less than the fair market value of our common stock on the date the option was granted and no option has a term in excess of ten years. No options were granted during the quarter ended March 31, 2014. We recognized share based compensation expense of $0 and $5,843 for the quarters ended March 31, 2014 and 2013, respectively, as a component of operating expenses. During the three months ended March 31, 2014 and 2013, the stock option activity under our stock option plans was as follows:


   

Weighted Average Exercise

Price

   

#

of

shares

   

Weighted Average Remaining Contractual Term (in years)

   

Aggregate

Intrinsic

Value

 

Outstanding, January 1, 2013

  $ 4.53       121,600                  

Granted

    6.87       12,000                  

Cancelled

    -       -                  

Exercised

    -       -                  

Outstanding, March 31, 2013

  $ 4.74       133,600       4.97     $ 218,446  

Exercisable, March 31, 2013

  $ 4.53       121,600       4.83     $ 206,760  
                                 

Outstanding, January 1, 2014

  $ 5.04       84,600                  

Granted

    -       -                  

Cancelled

    -       -                  

Exercised

    -       -                  

Outstanding, March 31, 2014

  $ 5.04       84,600       6.72     $ 104,656  

Exercisable, March 31, 2014

  $ 5.04       84,600       6.72     $ 104,656  

Other information pertaining to option activity during the three-month periods ended March 31, 2014 and 2013 are as follows:


   

March 31, 2014

   

March 31, 2013

 

Weighted average grant-date fair value of stock options granted

    N/A     $ 11,686  

Total fair value of stock options vested

    N/A       N/A  

Total intrinsic value of stock options exercised

    N/A       N/A  

The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:


   

2014

   

2013

 

Volatility

    N/A       19.1%  

Expected option life (years)

    N/A       3  

Interest rate (risk free)

    N/A       0.80%  

Dividends

    None       None  

As of March 31, 2014 and 2013, there was unrecognized compensation cost related to non-vested stock options of $0 and $5,843, respectively.


We have a restricted stock plan that was adopted by our Board of Directors in January 2013 and approved by our stockholders in June 2013. The plan reserves up to 300,000 shares of our common stock for restricted stock awards to our executive officers, non-employee directors and other key employees. Awards granted under the plan may be stock awards or performance awards, and may be subject to a graded vesting schedule with a minimum vesting period of four years.


In February 2014, our Chief Executive Officer, Chief Financial Officer and Senior Vice President were awarded restricted stock grants consisting of 9,375 shares each. In addition, four of our independent directors were awarded restricted stock grants consisting of 1,619 shares each. The grants will vest in equal annual amounts over a four-year period. The fair value of nonvested restricted common stock awards is the market value of our common stock on the date of grant. Compensation costs for these awards will be recognized on a straight-line basis.


A summary of the activity for nonvested restricted common stock awards as of March 31, 2014 is presented below:


   

Shares

   

Grant Fair Value

 

Balance, January 1, 2014

    -       -  

Granted

    34,601     $ 8.96  

Forfeited

    -       -  

Vested

    -       -  

Balance, March 31, 2014

    34,601     $ 8.96  

Total unrecognized compensation expense for the nonvested restricted stock awards as of March 31, 2014 totals $310,025 and is expected to be recognized in equal annual amounts over a period of four years.