XML 22 R11.htm IDEA: XBRL DOCUMENT

6. STOCK BASED COMPENSATION

9 Months Ended

Sep. 30, 2016

The Company has a stock incentive plan, originally created in 1992, and most recently amended in 2001. No additional grants may be made under the plan. All stock options have an exercise price that is equal to the fair market value of the Company’s stock on the date the options were granted. Administration of the plan, including determination of the number, term, and type of options to be granted, lies with the Board of Directors or a duly authorized committee of the Board of Directors. Options were generally granted based on employee performance with vesting periods ranging from date of grant to seven years. At the date of the grant, the maximum term before expiration is ten years.

The following table presents information related to the value of outstanding stock options for the period shown:

	Three months ended				Nine months ended
	September 30, 2016				September 30, 2016
	Weighted Average Exercise				Weighted Average Exercise
	Shares		Price		Shares			Price

Outstanding at beginning of period		7,000	$	3.09		67,000		$	3.22
Granted		-		-		-			-
Exercised		-		-		(60,000	)		3.23
Forfeited		-		-		-			-

Outstanding at end of period		7,000	$	3.09		7,000		$	3.09

At September 30, 2016, the Company had 7,000 vested stock options with no unrecognized compensation expense.

The Company expenses stock options on a straight-line basis over the options’ related vesting term. Compensation expense related to stock options for the three months ended September 30, 2016 and 2015 was $4 and $372, respectively. Compensation expense related to stock options for the nine months ended September 30, 2016 and 2015 was $748 and $10,955, respectively.

Stock options exercised during the three months ended September 30, 2016 and 2015 were 0 and 58,000, respectively. Stock options exercised during the nine months ended September 30, 2016 and 2015 were 60,000 and 115,971, respectively.