Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Equity

v3.19.1
Note 10 - Equity
 3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
Note
10:
Equity
 
Stock Options
 
In the
three
months ended
March 31, 2019,
the Company granted
62,944
stock options to employees with an exercise price of
$12.02.
 
The Company’s stock trading price is the basis of fair value of its common stock used in determining the value of share-based awards. To the extent the value of the Company’s share-based awards involves a measure of volatility, it will rely upon the volatilities from publicly traded companies with similar business models until its common stock has accumulated enough trading history for it to utilize its own historical volatility, and the Company has
no
reason to believe that its future volatility will differ materially during the expected or contractual term, as applicable, from the volatility calculated from this past information.. We use the simplified method to calculate the expected term of stock option grants to employees as we do
not
have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term of stock options granted to employees. Accordingly, the expected life of the options granted is based on the average of the vesting term and the contractual term of the option. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury
10
-year yield curve in effect at the date of the grant. 
 
The Company has computed the fair value of all options granted during the
three
months ended
March 31, 2019
and
2018,
using the following assumptions:
 
    Three Months Ended March 31,
    2019   2018
Expected volatility    
35%
      
42%
-
43%
  
Expected dividends    
None
      
 
None
 
  
Expected term (years)    
7%
      
 
7
 
  
Risk-free rate    
2.61%
      
2.53%
to
2.63%
  
Forfeiture rate    
20%
      
 
20%
 
  
 
The information below summarizes the stock options activity:
 
    Number of
Shares		   Weighted
Average
Exercise
Price		   Weighted
Average
Fair
Value		   Weighted
Average
Remaining
Contractual Life
Outstanding at December 31, 2017    
1,003,916
     $
4.18
     $
1.87
      
8.1
  
Granted at market price    
145,792
      
7.00
      
 
      
 
  
Exercised    
(95,162
 )    
3.48
      
 
      
 
  
Cancelled    
(67,855
 )    
3.37
      
 
      
 
  
Outstanding at December 31, 2018    
986,691
     $
4.72
     $
2.09
      
6.8
  
Granted at market price    
62,944
      
12.02
      
 
      
 
  
Exercised    
(42,804
 )    
5.15
      
 
      
 
  
Cancelled    
-
      
-
      
 
      
 
  
Outstanding at March 31, 2019    
1,006,831
     $
5.16
     $
2.25
      
6.5
  
Exercisable at March 31, 2019    
522,488
     $
4.67
     $
2.04
      
6.5
  
 
The intrinsic value of the Company’s stock options outstanding was
$10,659,380
at
March 31, 2019.
 
For the
three
months ended
March 31, 2019
and
2018,
stock-based compensation expense for stock options was
$96,804
and
$139,172,
respectively.  Unrecognized stock-based compensation expense for stock options as of
March 31, 2019
was
$1,020,834,
which is expected to be recognized ratably over the next
3.0
years.
 
Restricted Stock
 
The information below summaries the restricted stock activity:
 
  Restricted Stock Awards   Shares  
  Outstanding at December 31, 2018    
51,134
    
  Awards granted    
11,131
    
  Awards vested    
-
    
  Awards forfeited    
-
    
  Outstanding at March 31, 2019    
62,265
    
For the
three
months ended
March 31, 2019
and
2018,
stock-based compensation expense for restricted stock was
$74,967
and
$68,469,
respectively. Unrecognized stock-based compensation expense for restricted stock awards as of
March 31, 2019
was
$308,413,
which is expected to be recognized ratably over the next
3.1
years.