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Note 11 - Stockholders' Equity

12 Months Ended

Dec. 31, 2014

Disclosure Text Block Supplement [Abstract]

Shareholders' Equity and Share-based Payments [Text Block]

NOTE 11 – Stockholders’ equity

1989 Non-Qualified Stock Option Plan

On June 15, 1989, the Company instituted a non-qualified stock option plan (the “Plan”). In connection therewith, 700,000 shares of the Company’s common stock were reserved for issuance pursuant to options that may be granted under the Plan through June 30, 2009. All options granted vest over a four-year period and expire between five to seven years after the date of grant. This 1989 Non-Qualified Stock Option Plan expired in June 2009.

2001 Non-Qualified Stock Option Plan

In November 2006, the Company registered a non-qualified stock option plan that the shareholders had approved in July 2001, covering key employees, officers, directors and other persons that may be considered as service providers to the Company. Options were awarded by the Board of Directors or by a committee appointed by the Board. Under the plan, an aggregate of 300,000 shares of Company common stock, $.01 par value, were reserved for issuance or transfer upon the exercise of options which are granted. Unless otherwise provided in the option agreement, options granted under the plan would vest over a four year period commencing one year from the anniversary date of the grant. There were no options granted in 2012. In 2011, 14,000 options were granted to outside directors at an exercise price of $7.90, which vested as to 25% on each of January 15, April 15, July 15 and October 15 of 2011. These options expire ten years after the date of grant. The stock option plan terminated on July 22, 2011.

2007 Share Incentive Plan

On December 12, 2007, shareholders approved the Company’s 2007 Share Incentive Plan (“Incentive Plan”), in connection therewith, 750,000 shares of the Company’s common stock are reserved for issuance pursuant to options or restricted stock that may be granted under the Share Incentive Plan through December 12, 2017. In 2013, 28,087 shares of stock were granted and issued to directors and key employees. In 2014, 42,320 shares of stock were granted and issued to directors and key employees. Also in 2014 options were granted to a key employee for 100,000 shares of the Company’s common stock.

The purchase price of the common stock under each option plan shall be determined by the Committee, provided, however, that such purchase price shall not be less than the fair market value of the shares on the date such option is granted. The stock options generally expire seven to ten years after the date of grant. The Company recorded stock-based compensation of $515,933 and $461,195 for the years ended December 31, 2014 and 2013, respectively.

A summary of the stock option activity related to the 1989 and 2001 Stock Option Plans and the 2007 Share Incentive Plan for the period from January 1, 2013 through December 31, 2014 is as follows:

1989 Non-Qualified Stock Option Plan

	Beginning		Granted		Exercised		Canceled		Ending
	Balance		During		During		During		Balance
	Outstanding		Period		Period		Period		Outstanding		Exercisable

Year ended December 31, 2013
Number of shares		41,900		0		6,650		0		35,250		35,250
Weighted average exercise price
Per share	$	4.82		0		0		0	$	4.62	$	4.62
Year ended December 31, 2014
Number of shares		35,250		0		0		0		35,250		35,250
Weighted average exercise price
Per share	$	4.62		0		0		0	$	4.62	$	4.62

2001 Non-Qualified Stock Option Plan

	Beginning		Granted		Exercised		Canceled		Ending
	Balance		During		During		During		Balance
	Outstanding		Period		Period		Period		Outstanding		Exercisable

Year ended December 31, 2013
Number of shares		162,480		0		10,000		0		152,480		127,480
Weighted average exercise price
Per share	$	4.35		0		0		0	$	4.40	$	4.35
Year ended December 31, 2014
Number of shares		152,480		0		28,000		0		124,480		111,980
Weighted average exercise price
Per share	$	4.35		0		0		0	$	4.57	$	4.56

2007 Share Incentive Plan

	Beginning		Granted		Exercised		Canceled		Ending
	Balance		During		During		During		Balance
	Outstanding		Period		Period		Period		Outstanding		Exercisable

Year ended December 31, 2013
Number of shares		200		0		0		200		0		0
Weighted average exercise price
Per share	$	11.51
Year ended December 31, 2014
Number of shares		0		100,000		0		0		100,000		0
Weighted average exercise price
Per share									$	11.17

The Company has 259,730 of outstanding stock options under the three Plans at December 31, 2014.

The following table summarizes information about the outstanding and exercisable options at December 31, 2014.

			Options Outstanding								Options Exercisable
					Weighted		Weighted						Weighted
					Average		Average						Average
Exercise			Number		Remaining		Exercise		Intrinsic		Number		Exercise		Intrinsic
Price Range			Outstanding		Contractual		Price		Value		Exercisable		Price		Value

$3.00	-	3.99		34,000		2.95	$	3.65	$	365,160		34,000	$	3.65	$	365,160
$4.00	-	4.49		15,930		5.04	$	4.25	$	161,530		15,930	$	4.25	$	161,530
$4.50	-	4.99		100,000		2.78	$	4.62	$	977,000		75,000	$	4.62	$	854,875
$5.00	-	7.99		9,800		6.04	$	7.90	$	63,602		9,800	$	7.90	$	63,602
$8.00	-	12.00		100,000		9.80	$	11.17	$	322,000		0	$	11.17	$	0

The intrinsic value of the 28,000 options exercised during the year ended December 31, 2014 was $310,520. The intrinsic value of the 16,650 options exercised during the year ended December 31, 2013 was $90,988.

Restricted Stock Awards

The following table summarizes restricted stock awards for the year ended December 31, 2014:

				Weighted
				Average Grant
	Shares of			Date Fair
	Restricted Stock			Value
Unvested outstanding at January 1, 2013		16,000		$	10.97

Granted		7,800		$	10.16
Vested		(11,800	)	$	10.43
Forfeited/Cancelled		-

Unvested outstanding at December 31, 2013		12,000		$	10.97

Granted		6,400		$	14.24
Vested		(10,400	)	$	12.98
Forfeited/Cancelled		-

Unvested outstanding at December 31, 2014		8,000		$	10.97

The total fair value of shares of restricted stock awards vested for the years ended December 31, 2014 and 2013 was approximately $135,000 and $123,000 respectively

The fair value of the outstanding restricted stock awards will be recorded as stock compensation expense over the vesting period. As of December 31, 2014 there was $88,000 of unrecognized compensation costs related to restricted stock awards, which is to be recognized over a period of 1.35 years.

Restricted Stock Units

				Weighted
	Shares of			Average Grant
	Restricted			Date Fair
	Stock Units			Value
Unvested outstanding at January 1, 2013		30,575		$	8.29

Granted		133,955		$	11.66
Vested		(20,287	)	$	9.38
Forfeited/Cancelled		-

Unvested outstanding at December 31, 2013		144,243		$	11.26

Granted		-
Vested		(37,925	)	$	10.09
Forfeited/Cancelled		(2,500	)	$	10.71

Unvested outstanding at December 31, 2014		103,319		$	11.71

The total fair value of vested restricted stock units was $383,000 and $190,000 respectively for the years ended December 31, 2014 and 2013.

The fair value of the outstanding restricted stock units will be recorded as stock compensation expense over the vesting period. As of December 31, 2014, there was $1,210,000 of total unrecognized compensation costs related to restricted stock units, which is expected to be recognized over a weighted-average period of 2.19 years.

During the years ended December 31, 2013 and 2012, the Company recorded into selling and general administrative expense approximately $462,000 and $235,000 for the cost of employee and director services received in exchange for equity instruments based on the grant-date fair value of those instruments in accordance with the provisions of ASC 718.

On August 1, 1998, the Company adopted a 401(k) Plan for the benefit of all eligible employees. All employees as of the effective date of the 401(k) Plan became eligible. An employee who became employed after August 1, 1998 would become a participant after three months of continuous service.

Participants may elect to contribute from their compensation any amount up to the maximum deferral allowed by the Internal Revenue Code. Employer contributions are optional. During the years ended December 31, 2014 and 2013, the Company incurred administrative costs totaling $2,800 and $2,380 respectively. No discretionary employer contribution has been made for 2014 and 2013.