Note 7 - Share-based Compensation

9 Months Ended

Sep. 30, 2018

Share-based Compensation

Employee Stock Option Plans

The Company’s share-based incentive plans offering stock options are offered under the Company’s

2007

Equity Incentive Plan (the

“2007

Plan”), which was restated and approved by the shareholders on

December 12, 2015.

Provisions of the restated

2007

Plan include the granting of up to

2,000,000

incentive and non-qualified stock options, stock appreciation rights, restricted stock and restricted stock units. Options

may

be granted to employees, officers, non-employee directors and other service providers and

may

be granted upon such terms as the Compensation Committee of the Board of Directors determines in their sole discretion. As of

September 30, 2018,

there were

706,091

options outstanding under the

2007

Plan. As of

September 30, 2018,

the

2007

Plan had

789,003

authorized unissued options.

A summary of the stock option activity under the Company’s plans for the

nine

months ended

September 30, 2018

is as follows:

	Number of shares			Weighted average exercise price

Options outstanding at beginning of year		764,430		$	8.78
Granted		—			—
Less:
Exercised		—			—
Forfeited prior to vesting		(24,757	)		11.05
Canceled or expired		(33,582	)		10.87
Options outstanding at September 30 , 2018		706,091			8.60
Options exercisable at end of September 30 , 2018		598,805		$	8.22

As of

September 30, 2018,

the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately

$379,

which will be recognized over a weighted average period of

1.32

years.

Share-based compensation expense has been recorded as follows:

	Three months ended September 30 ,				Nine months ended September 30 ,
	2018		2017		2018		2017
Cost of goods sold	$	3	$	5	$	12	$	16
Sales and marketing		8		10		28		31
Research and product development		23		25		81		80
General and administrative		78		122		258		341
	$	112	$	162	$	379	$	468