NOTE

STOCK-BASED COMPENSATION EXPENSE

The Company recorded as part of general and administrative expense

$44,000

and

$73,000

during the

three

months ended

March 31, 2021

and

2020,

respectively, for the cost of employee and director services received in exchange for equity instruments based on the grant-date fair value of those instruments.

A summary of the stock option activity related to the

2001

Stock Option Plans, the

2007

Share Incentive Plan and the

2016

Share Incentive Plan for the period from

January 1, 2021

through

March 31, 2021

are as follows:

2001 Non-Qualified Stock Option Plan
	Beginning		Granted		Exercised		Canceled			Ending
	Balance		During		During		During			Balance
	Outstanding		Period		Period		Period			Outstanding		Exercisable

Number of shares		7,000		-		-		(7,000	)		-		-

Weighted average exercise price per share	$	7.90		-		-	$	7.90			-		-

2007 Share Incentive Plan
	Beginning		Granted		Exercised		Canceled		Ending
	Balance		During		During		During		Balance
	Outstanding		Period		Period		Period		Outstanding		Exercisable

Number of shares		345,000		-		-		-		345,000		305,000

Weighted average exercise price per share	$	12.33		-		-		-	$	12.33	$	12.33

2016 Share Incentive Plan
	Beginning		Granted		Exercised		Canceled		Ending
	Balance		During		During		During		Balance
	Outstanding		Period		Period		Period		Outstanding		Exercisable

Number of shares		65,000		-		-		-		65,000		65,000

Weighted average exercise price per share	$	5.94		-		-		-	$	5.94	$	5.94

The Company has a total of

410,000

of outstanding stock options and

370,000

exercisable under the

three

plans at

March 31, 2021.

The following table summarizes information about the outstanding and exercisable options at

March 31, 2021.

			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
$4.00	-	7.00		45,000		.0	$	5.00	$	0		45,000	$	5.00	$	0
$7.01	-	10.00		20,000		.0	$	8.07	$	0		20,000	$	8.07	$	0
$10.01	-	12.00		220,000		.1	$	10.81	$	0		180,000	$	11.05	$	0
$12.01	-	15.00		125,000		1.5	$	15.00	$	0		125,000	$	15.00	$	0

options were exercised for the

three

months ended

March 31, 2021.

As of

March 31, 2021,

there was

$7,900

of unrecognized compensation costs related to stock options expected to be recognized over a weighted average period of

1.00

years.

Restricted Stock Awards

The following table summarizes restricted stock awards for the

three

months ended

March 31, 2021:

			Weighted
			Average Grant
	Shares of		Date Fair
	Restricted Stock		Value
Unvested outstanding at December 31, 2020		0	$	0
Granted		42,800	$	4.65
Vested		0	$	0
Forfeited/Cancelled		0	$	0
Unvested outstanding at March 31, 2021		42,800	$	4.65

Restricted Stock Units

The following table summarizes restricted stock units for the

three

months ended

March 31, 2021:

				Weighted
	Shares of			Average Grant
	Restricted			Date Fair
	Stock Units			Value
Unvested outstanding at December 31, 2020		8,750		$	5.00
Granted		2,333		$	5.36
Vested		(5,583	)	$	5.32
Forfeited/Cancelled		(-	)	$	-

Unvested outstanding at March 31, 2021		5,500		$	4.83

The total fair value of vested restricted stock units was

$29,700

for the

three

months ended

March 31, 2021.

The fair value of the outstanding restricted stock units will be recorded as stock compensation expense over the vesting period. As of

March 31, 2021,

there was

$20,000

of total unrecognized compensation costs related to restricted stock units, which is expected to be recognized over a weighted-average period of

1.0

years.