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Note O - Stock Options
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
NOTE
O
—STOCK OPTIONS
 
2004
Stock Option Plan
 
On
October 
12,
2004,
the Board of Directors of the Company approved the
2004
Stock Option Plan (the
2004
Plan). The
2004
Plan was
not
presented to stockholders for approval and thus incentive stock options were
not
available under this plan. Under the terms of this plan,
166,667
shares of common stock were reserved for issuance to employees, officers, directors, and consultants of the Company at exercise prices which
may
not
be below
85%
of fair market value. The term of stock options granted
may
not
exceed
ten
years. Options issued under the
2004
Plan vest pursuant to the terms of stock option agreements with the recipients. In the event of a change in control, as defined, all options outstanding vest immediately. The
2004
Plan expired in
October 
2014.
 
2015
Stock Option Plan
 
On
January 27, 2016,
the shareholders approved the
2015
Equity Incentive Plan (the
2015
Plan). Under the terms of this plan,
666,667
shares of common stock are reserved for issuance to employees, officers, directors, and consultants of the Company at exercise prices which
may
not
be below
100
-
110%
of fair market value. The term of stock options granted
may
not
exceed
ten
years. Options issued under the
2015
Plan vest pursuant to the terms of stock option agreements with the recipients. In the event of a change in control, certain stock awards issued under this plan
may
be subject to additional acceleration of vesting as
may
be provided in the participants’ written agreement. The
2015
Plan expires in
December 2025.
 
Non-Plan Stock Options
 
Periodically, the Company has granted options outside of the
2004
and
2015
Plans to various employees and consultants. In the event of change in control, as defined, certain of the non-plan options outstanding vest immediately.
   
Stock Option Activity
 
Information summarizing option activity is as follows:
 
 
 
Number of Options
 
 
Weighted
average
 
 
Weighted
average
remaining
 
 
Aggregate
 
 
 
2004
Plan
 
 
2015
Plan
 
 
Non
Plan
 
 
Total
 
 
exercise
price
 
 
life
(in years)
 
 
intrinsic
value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, as of
December 31, 2016
 
 
69,380
 
 
 
25,003
 
 
 
247,280
 
 
 
341,663
 
 
$
3.99
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted
 
 
—
 
 
 
64,167
 
 
 
1,170,000
 
 
 
1,234,167
 
 
 
2.69
 
 
 
 
 
 
 
 
 
Exercised
 
 
—
 
 
 
—
 
 
 
(4,167
)
 
 
(4,167
)
 
 
2.16
 
 
 
 
 
 
 
 
 
Forfeited
 
 
—
 
 
 
(7,084
)
 
 
(65,140
)
 
 
(72,224
)
 
 
2.62
 
 
 
 
 
 
 
 
 
Expired
 
 
(17,084
)
 
 
—
 
 
 
(4,862
)
 
 
(21,946
)
 
 
8.86
 
 
 
 
 
 
 
 
 
Outstanding, as of
December 31, 2017
 
 
52,296
 
 
 
82,086
 
 
 
1,343,111
 
 
 
1,477,493
 
 
$
2.91
 
 
 
5.64
 
 
$
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted
 
 
—
 
 
 
351,918
 
 
 
—
 
 
 
351,918
 
 
 
1.97
 
 
 
 
 
 
 
 
 
Exercised
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
 
 
 
 
 
 
Forfeited
 
 
—
 
 
 
(38,613
)
 
 
(111,253
)
 
 
(149,866
)
 
 
2.63
 
 
 
 
 
 
 
 
 
Expired
 
 
(18,961
)
 
 
(13,473
) 
 
 
(59,097
)
 
 
(91,531
)
 
 
3.03
 
 
 
 
 
 
 
 
 
Outstanding, as of
December 31, 2018
 
 
33,335
 
 
 
3
81
,918
 
 
 
1,1
72
,761
 
 
 
1,
588,014
 
 
$
2.
7
2
 
 
 
5.00
 
 
$
0
 
Vested or expected to vest at December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,
321,981
 
 
$
2.
79
 
 
 
4.
8
3
 
 
$
0
 
Exercisable at December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
593,573
 
 
$
3.
17
 
 
 
3.94
 
 
$
0
 
 
The options outstanding and exercisable at
December 
31,
2018
were in the following exercise price ranges:
 
 
 
 
 
 
 
Options Outstanding
 
 
Options Exercisable
 
Range of exercise prices
 
 
Number of
shares
 
 
Weighted
average
exercise
price
 
 
Weighted
average
remaining
life (in years)
 
 
Number
exercisable
 
 
Weighted
average
exercise
price
 
$
1.83
-
2.50
 
 
 
413,843
 
 
$
2.01
      
5.88
 
 
 
81,230
 
 
$
2.15
 
 
2.51
-
3.50
 
 
 
1,000,415
 
 
 
2.69
      
5.23
 
 
 
338,587
 
 
 
2.69
 
 
3.51
-
4.92
 
 
 
173,756
 
 
 
4.58
      
1.76
 
 
 
173,756
 
 
 
4.58
 
$
1.83
-
4.92
 
 
 
1,588,014
 
 
 
 
      
 
 
 
 
593,573
 
 
 
 
 
 
The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of
$0.75
as of
December 
31,
2018,
which would have been received by the option holders had all option holders exercised their options as of that date. The total number of in-the-money options exercisable as of
December 
31,
2018
was
0.
   
The weighted average fair value of options granted during the years ended
December 
31,
2018
and
2017
was
$1.53
and
$2.32
per share, respectively. The total intrinsic value of options exercised during the years ended
December 
31,
2018
and
2017
was
$0
and
$5,667,
respectively. The total fair value of shares vested during the years ended
December 
31,
2017
and
2016
was
$946,435
and
$197,281
respectively.
 
As of
December 
31,
2018,
future forfeiture adjusted compensation cost related to nonvested stock options is
$1,228,771
and will be recognized over an estimated weighted average period of
1.50
years.