Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Stock-Based Compensation

Note 5 - Stock-Based Compensation

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5 .	Stock-Based Compensation

For the

three

-month periods ended

September

30,

2017

and

2016,

our total stock-based compensation expense, which includes reversals of expense for certain forfeited or cancelled awards, was approximately

$64,000

and

$50,000,

respectively. For the

nine

-month periods ended

September

30,

2017

and

2016,

our total stock-based compensation expense, which includes reversals of expense for certain forfeited or cancelled awards, was approximately

$320,000

and

$311,000,

respectively. We have

not

recorded any income tax benefit related to stock-based compensation in any of the

three

-month or

nine

-month periods ended

September 30, 2017

and

2016.

A summary of the status of our stock options as of

September 30, 2017,

and changes during the

nine

-month period then ended, is presented below:

	Nine Months Ended September 30 , 2017
	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding at beginning of period		3,380,615		$	2.00
Granted		1,390,000			0.75
Exercised		—			—
Canceled and Forfeited		(756,601	)		1.64
Expired		—			—
Outstanding at end of period		4,014,014		$	1.63	6.6	$	2,650
Exercisable at end of period		2,519,780		$	2.11	4.9	$	2,650

A summary of the status of our unvested restricted stock as of

September 30, 2017,

and changes during the

nine

-month period then ended, is presented below:

	Nine Months Ended September 30 , 2017
	Number of Shares			Weighted Average Grant-Date Fair Value
Unvested at beginning of period		207,000		$	1.17
Granted		200,000			0.51
Vested		(207,000	)		1.17
Forfeited		—			—
Unvested at end of period		200,000		$	0.51

As of

September 30, 2017,

there was approximately

$181,000

of total unrecognized compensation expense related to unvested stock-based awards, which we expect to recognize over the remaining weighted average vesting term of approximately

year.