Note 9 - Share-based Compensation

3 Months Ended

Mar. 31, 2019

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

March 31, 2019,

there were

570,523

options outstanding under the

2007

Plan. As of

March 31, 2019,

the

2007

Plan had

924,571

authorized unissued options.

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

three

months ended

March 31, 2019

is as follows:

	Number of shares			Weighted average exercise price

Options outstanding at beginning of year		624,256		$	8.87
Granted		—			—
Less:
Exercised		—			—
Forfeited prior to vesting		—			—
Canceled or expired		(53,733	)		9.49
Options outstanding at March 31, 201 9		570,523			8.81
Options exercisable at end of March 31, 201 9		514,438		$	8.63

As of

March 31, 2019,

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

$191,

which will be recognized over a weighted average period of

1.02

years.

Share-based compensation expense has been recorded as follows:

	Three months ended March 31,
	201 9		201 8
Cost of goods sold	$	2	$	5
Sales and marketing		1		10
Research and product development		12		30
General and administrative		59		92
	$	74	$	137