Note K - Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Note K-Stock-Based Compensation

Note K – Stock-Based Compensation

PT has stock options outstanding from two stock-based employee compensation plans: the 2003 Omnibus Incentive Plan and the 2012 Omnibus Incentive Plan. Each plan provides for equity-based incentive awards to selected employees, directors and consultants, with a maximum of 1,500,000 shares that may be awarded under each plan.

PT recognizes compensation expense in the financial statements for stock option awards based on the grant date fair value of those awards, estimated using the Black-Scholes-Merton option pricing model. The table below summarizes the impact of outstanding stock options on the results of operations for the three month periods ended March 31, 2013 and 2012.

	Three Months Ended
	March 31,
	2013		2012
Stock-based compensation expense	$	57,000	$	67,000
Income tax benefit		—		—
Decrease in net income / increase in net loss	$	57,000	$	67,000
Per share	$	0.01	$	0.01

The following table summarizes stock option activity for the first quarter 2013:

	Number of shares			Weighted Average Exercise Price
Outstanding at January 1, 2013		1,654,600		$	3.08
Granted		692,000			.90
Exercised		—			—
Expired		(22,250	)		4.23
Outstanding at March 31, 2013		2,324,350			2.43
Exercisable at March 31, 2013		1,071,750		$	3.62

The weighted average fair value of option grants was estimated using the Black-Scholes-Merton option pricing method. At March 31, 2013, PT had approximately $373,000 of unrecognized stock compensation expense which will be recognized over a weighted average period of approximately 2.2 years.