XML 25 R13.htm IDEA: XBRL DOCUMENT
v3.20.2

Stock-based Compensation | 9 Months Ended
--- | ---
Sep. 30, 2020
Share-based Payment Arrangement [Abstract] |
Stock-based Compensation | Stock-based Compensation In June 2010, the Company’s shareholders approved an amendment and restatement of the Company’s stock incentive plan, renaming it the Incentive Compensation Plan (the “Plan”), and among other things, increasing the number of shares of the Company’s common stock reserved for issuance under the Plan to 1,630,000. The Plan provides that the shares reserved under the Plan are available for issuance to officers of the Company, other key employees, non-employee directors, and advisors. No further grants or share issuances will be made under the previous plans. On June 21, 2019, the Company’s shareholders approved an amendment and restatement of the Plan in order to extend the term of the Plan by two years to February 22, 2022. Stock-based compensation expense associated with the Company’s stock options to employees is calculated using the Black-Scholes valuation model. The Company’s stock awards have characteristics significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the fair value estimates. The estimated fair value of the Company’s option grants is estimated using assumptions for expected life, volatility, dividend yield, and risk-free interest rate which are specific to each award. The estimated fair value of the Company’s options is expensed over the period during which an employee is required to provide service in exchange for the award (requisite service period), usually the vesting period. Accordingly, stock-based compensation cost before income tax effect for the Company’s options and restricted stock awards in the amount of $80,000 and $189,000 is reflected in net loss for the three and nine-month periods ended September 30, 2020 compared to $62,000 and $170,000 in the same periods of the prior year, respectively. At September 30, 2020, there was approximately $16,000 of unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan, excluding unrecognized compensation cost associated with the performance share awards, discussed below. This cost is expected to be recognized over a period of approximately three years. On January 4, 2017, the Company entered into a Performance Share Award Agreement with three executive officers of the Company (the “Award Agreements”) for 161,766 restricted stock awards which vest upon the achievement of certain performance metrics. The Award Agreements expired on March 31, 2020. Based on the guidance in ASC 718 Stock Compensation (“ASC 718”), the Company concluded these were performance-based awards with vesting criteria tied to performance metrics. As of December 31, 2018, the Company achieved one of those certain performance metrics under the Award Agreements and recognized stock compensation expense of approximately $108,000 related to these awards. The unrecognized stock-based compensation expense for these awards was approximately $434,000 and the unvested awards of approximately 129,000 shares were returned to the Plan as of March 31, 2020. The following table summarizes stock option activity for the nine-month periods ended September 30, 2020 and 2019:
|  | Stock Options |  | Grant Date Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Life (in Years) |  | Intrinsic Value
Outstanding at January 1, 2020 |  | 450,000 |  |  | $ | 2.78 |  |  | 2.44 |  | $ | 27,000 |
Granted |  | 10,000 |  |  | $ | 1.88 |  |  | 7.00 |  | $ | — |
Forfeited |  | (40,000) |  |  | $ | 2.58 |  |  | — |  |  | $ | — |
Outstanding at September 30, 2020 |  | 420,000 |  |  | $ | 2.78 |  |  | 1.86 |  | $ | — |
Exercisable at September 30, 2020 |  | 403,000 |  |  | $ | 2.80 |  |  | 1.69 |  | $ | — |
Outstanding at January 1, 2019 |  | 613,000 |  |  | $ | 2.85 |  |  | 3.18 |  | $ | — |
Granted |  | 18,000 |  |  | $ | 2.91 |  |  | 7.00 |  | $ | — |
Exercised |  | (16,000) |  |  | $ | 2.59 |  |  | — |  |  | $ | — |
Forfeited |  | (12,000) |  |  | $ | 3.05 |  |  | — |  |  | $ | — |
Outstanding at September 30, 2019 |  | 603,000 |  |  | $ | 2.86 |  |  | 2.09 |  | $ | 42,000 |
Exercisable at September 30, 2019 |  | 478,000 |  |  | $ | 2.86 |  |  | 1.97 |  | $ | — |

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration