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Note S - Stock Options

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Text Block]

NOTE S—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, 20,834 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 stockholders approved the 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan initially reserved 187,500 shares of common stock for issuance of options, restricted stock, and other equity based awards to employees, officers, directors, and consultants of the Company. In 2019, the stockholders approved an amendment to the 2015 Plan which increases the number of shares of common stock authorized for issuance under the 2015 Plan from 83,334 shares to 187,500 shares and also effected certain changes in light of the Tax Cuts and Jobs Act of 2017 and its impact on Section 162(m) of the United States Internal Revenue Code of 1986, as amended. In 2021, the stockholders approved an amendment to the 2015 to increase the shares of common stock authorized for issuance under the 2015 Plan from 187,500 shares to 789,000 shares together with other technical changes. In 2021, the stockholders approved an amendment to the 2015 to increase the shares of common stock authorized for issuance under the 2015 Plan from 187,500 shares to 789,000 shares together with other technical changes. The term of stock options granted under the 2015 Plan, may not exceed ten years, exercise prices may not be below 100-110% of fair market value, and vesting occurs over time periods set forth in written agreements with the recipients. In the event of a change in control, certain stock awards issued under the 2015 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, 2019		3,906			70,991			144,070			218,967		$	20.08		*5.00*	$	0
Granted		—			28,440			—			28,440			5.04
Exercised		—			—			—			—			—
Forfeited		—			(4,545	)		—			(4,545	)		17.34
Expired		(3,906	)		(703	)		(10,979	)		(15,588	)		29.17
Outstanding, as of December 31, 2020		—			94,183			133,091			227,274		$	17.61		3.87	$	0

Granted		—			—			—			—		‐—
Exercised		—			—			—			—			—
Forfeited		—			(3,291	)		—			(3,291	)		3.87
Expired		—			(84	)		(11,438	)		(11,522	)		39.13
Outstanding, as of December 31, 2021		—			90,808			121,653			212,461		$	16.65		3.03	$	0
Vested or expected to vest at December 31, 2021											206,283		$	16.98		2.95	$	0
Exercisable at December 31, 2021											186,538		$	18.04		2.73	$	0

The options outstanding and exercisable at December 31, 2021 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
$	4.08	-	5.20		24,940	$	5.19		5.64		8,402	$	5.17
$	5.21	-	15.68		49,669		12.17		3.79		40,284		12.85
$	15.69	-	39.36		137,852		20.34		2.27		137,852		20.34
$	4.08	-	39.36		212,461						186,538

The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $2.21, $3.52 and $4.00 as of December 31, 2021, 2020 and 2019, respectively, which would have been received by the option holders had all option holders exercised their options as of that date. There were no in-the-money options exercisable as of December 31, 2021, 2020 and 2019.

The weighted average fair value of options granted during the year ended December 31, 2020 was $3.16 per share. The total intrinsic value of options exercised during the years ended December 31, 2021 and 2020 was $0 as no options were exercised in either year. The total fair value of shares vested during the years ended December 31, 2021 and 2020 was $252,874 and $899,750, respectively.

As of December 31, 2021, future forfeiture adjusted compensation cost related to nonvested stock options is $75,035 and will be recognized over an estimated weighted average period of 0.86 years.