Quarterly report pursuant to Section 13 or 15(d)

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN

v3.19.1
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN
 3 Months Ended
Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
NOTE 11 – EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN
 
Compensation expense charged against income for share-based awards during the three months ended March 31, 2019, was $834,465, as compared to $1,081,199 for the three months ended March 31, 2018. These amounts are included in general and administrative expense in the accompanying financial statements.
 
In 2011, the board of directors and stockholders approved and adopted a long-term incentive plan which allowed for the issuance of up to 2,500,000 shares of common stock through the grant of qualified stock options, non-qualified stock options and restricted stock. In 2013, the Company’s
 board of directors and
stockholders approved an amendment to the long-term incentive plan, increasing the number of shares eligible under the plan to 5,000,000 shares. As of March 31, 2019, there were 684,020 shares remaining eligible for issuance under the plan.
 
Stock Options
 
A summary of the stock option activity as of March 31, 2019, and changes during the three months then ended is as follows:
 
 
 
 
 
 
 
 
 
Weighted-
 
 
 
 
 
 
 
 
 
Weighted-
 
 
Average
 
 
 
 
 
 
 
 
 
Average
 
 
Remaining
 
 
Aggregate
 
 
 
 
 
 
Exercise
 
 
Contractual
 
 
Intrinsic
 
 
 
Shares
 
 
Price
 
 
Term
 
 
Value
 
Outstanding, December 31, 2018
 
 
2,751,000
 
 
$
6.28
 
 
 
 
 
 
 
 
 
Granted
 
 
-
 
 
$
-
 
 
 
 
 
 
 
 
 
Forfeited or rescinded
 
 
(2,500
)
 
$
11.70
 
 
 
 
 
 
 
 
 
Vested
 
 
-
 
 
$
-
 
 
 
 
 
 
 
 
 
Outstanding, March 31, 2019
 
 
2,748,500
 
 
$
6.28
 
 
 
5.3 Years
 
 
$
3,366,300
 
Exercisable, March 31, 2019
 
 
2,323,400
 
 
$
5.42
 
 
 
4.6 Years
 
 
 
 
 
 
The intrinsic value was calculated using the closing price on March 29, 2019 of $5.87. As of March 31, 2019, there was $1,501,300 of unrecognized compensation cost related to stock options that is expected be recognized over a weighted-average period of 1.8 years.
 
Restricted Stock
 
A summary of the restricted stock activity as of March 31, 2019, and changes during the three months then ended is as follows:
 
 
 
Restricted stock
 
 
Weighted-

Average Grant

Date Fair Value
 
Outstanding, December 31, 2018
 
 
878,360
 
 
$
7.36
 
Granted
 
 
-
 
 
 
-
 
Forfeited or rescinded
 
 
(4,400
)
 
 
7.53
 
Vested
 
 
-
 
 
 
-
 
Outstanding, March 31, 2019
 
 
873,960
 
 
$
7.36
 
 
As of March 31, 2019, there was $2,547,688 of unrecognized compensation cost related to restricted stock grants that will be recognized over a weighted average period of
2.3
years.