|9 Months Ended|
Sep. 30, 2019
|Share-based Payment Arrangement [Abstract]|
NOTE 11 – STOCK COMPENSATION
Equity Incentive Plan
In November 2016, the Company increased the number of shares available for issuance under its 2012 Equity Incentive Plan (as amended, the "Plan") from 550,000 to 850,000, which was approved by the Company's shareholders in December 2016. The Plan provides for grants of stock options, stock appreciation rights, restricted stock, other stock-based awards and other cash-based awards. As of September 30, 2019, the remaining shares of common stock available for future issuances of awards was 179,260. The Company granted an aggregate of 30,000 options to purchase restricted common stock to certain directors prior to the adoption of the Plan. Stock options generally vest and become exercisable with respect to 100% of the common stock subject to such stock option on the third (3rd) anniversary of the date of grant. Any unvested portion of a stock option shall expire upon termination of employment or service of the participant granted the stock option, and the vested portion shall remain exercisable in accordance with the provisions of the Plan.
The following table summarizes stock option activity for the nine months ended September 30, 2019:
At September 30, 2019 the exercisable options had no intrinsic value. As of September 30, 2019, there were 555,740 options vested and 115,000 options remain unvested. The vesting terms range from zero to 4 years and the vested options have a weighted average remaining term of 6.77 years and a weighted average exercise price of $5.57 per share.
The weighted average grant date fair value of the 72,000 stock options granted during the nine months ended September 30, 2019 was $0.76. The following table summarizes the assumptions used to value stock using a Black-Scholes model:
The risk-free rate is based on the U.S. Treasury rate for a note with a similar term in effect at the time of the grant. The expected annualized volatility is based on the volatility of the Company's historical stock prices.
Stock-based compensation consists of expenses related to the issuance of stock options and restricted stock. Stock-based compensation expenses were $93 and $195 for nine months ended September 30, 2019 and 2018, respectively.
The entire disclosure for share-based payment arrangement.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef