Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Equity

v3.10.0.1
Note 10 - Equity
 6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
Note
10:
Equity
 
Stock Options
 
In the
six
months ended
June 30, 2018,
the Company granted
60,000
stock options to employees with exercise prices ranging from
$4.92
-
$6.85.
 
 
Upon the completion of the Company’s IPO in
November 2014,
its stock trading price became 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. 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
six
months ended
June 30, 2018
and
2017,
using the following assumptions:
 
    Three Months Ended June 30,
    2018   2017
Expected volatility  
42%
-
43%
  
 
42%
 
Expected dividends  
 
None
 
  
 
None
 
Expected term (years)  
 
7
 
  
5.5
to
7
Risk-free rate  
2.53%
to
2.63%
  
1.98%
to
2.14%
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, 2016    
953,075
     $
3.66
     $
1.86
      
6.9
  
Granted at market price    
295,286
      
4.31
      
 
      
 
  
Exercised    
(206,875
 )    
1.76
      
 
      
 
  
Cancelled    
(37,570
 )    
5.11
      
 
      
 
  
Outstanding at December 31, 2017    
1,003,916
     $
4.18
     $
1.87
      
8.1
  
Granted at market price    
60,000
      
5.89
      
 
      
 
  
Exercised    
(78,040
 )    
3.52
      
 
      
 
  
Cancelled    
(9,605
 )    
4.46
      
 
      
 
  
Outstanding at June 30, 2018    
976,271
     $
4.34
     $
1.93
      
7.2
  
Exercisable at June 30, 2018    
429,811
     $
4.88
     $
2.12
      
7.2
  
 
The intrinsic value of the Company’s stock options outstanding was
$3,827,538
at
June 30, 2018.
 
For the
three
and
six
months ended
June 30, 2018,
stock-based compensation expense for stock options was
$69,640
and
$208,813,
respectively.  For the
three
and
six
months ended
June 30, 2017,
stock-based compensation expense for stock options was
$84,845
and
$135,883,
respectively. Unrecognized stock-based compensation expense for stock options as of
June 30, 2018
was
$763,121,
which is expected to be recognized ratably over the next
2.67
years.
 
Restricted Stock
 
The information below summaries the restricted stock activity:
 
Restricted Stock Awards   Shares
Outstanding at December 31, 2017    
63,700
  
Awards granted    
33,012
  
Awards vested    
(59,700
 )
Awards forfeited    
-
  
Outstanding at June 30, 2018    
37,012
  
 
For the
three
and
six
months ended
June 30, 2018,
stock-based compensation expense for restricted stock was
$69,347
and
$137,816,
respectively. For the
three
and
six
months ended
June 30, 2017,
stock-based compensation expense for restricted stock was
$47,211
and
$91,238,
respectively. Unrecognized stock-based compensation expense for restricted stock awards as of
June 30, 2018
was
$244,996,
the majority of which will be recognized within
one
year.