Note 6 - Stock Based Compensation

3 Months Ended

Mar. 31, 2013

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

6.        STOCK BASED COMPENSATION

2011 Omnibus Incentive Plan—The 2011 Omnibus Incentive Plan (the “2011 Plan”), became effective May 3, 2011, after approval by the Company’s stockholders on April 29, 2011. The objectives of the 2011 Plan are to optimize the profitability and growth of the Company through incentives that are consistent with the Company's goals and that link the personal interests of participants to those of the Company's stockholders. The 2011 Plan provides for a committee of the Company’s Board of Directors to award nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, and other awards representing up to 1,930,269 shares of Company stock. Awards may be granted under the 2011 Plan up to ten years following the effective date of the plan.  Each award under the 2011 Plan is governed by the terms of the individual award agreement, which shall specify pricing, term, vesting, and other pertinent provisions. Option awards are generally granted with an exercise price equal to the fair market value of the Company’s stock at the date of grant, generally vest based on five years of continuous service and have seven year contractual terms.  Restricted stock units generally vest based on three years of continuous service.  Compensation expense attributable to awards made under the 2011 Plan totaled approximately $43,000 and $41,000 for the three months ended March 31, 2013 and 2012, respectively.

Stock Options. The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model.  Expected volatilities are based on implied volatilities from historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate option exercise, employee termination, and expected term of the options within the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

A summary of the stock option activity in the Company’s 2011 Plan for the three months ended March 31, 2013, is presented below:

	Shares Underlying Awards			Weighted Average Exercise Price
Outstanding—January 1, 2013		223,500		$	6.65
Granted		--		$	--
Forfeited		(4,500	)	$	6.57
Outstanding—March 31, 2013		219,000		$	6.66

The weighted average remaining contractual life of the outstanding options was 5.7 years and the aggregate intrinsic value of the options was approximately $732,000 at March 31, 2013. None of the outstanding options are vested.

As of March 31, 2013, there was $539,000 of total unrecognized compensation costs related to nonvested share-based compensation arrangements under the 2011 Plan.  The cost is expected to be recognized over a weighted-average period of 3.7 years.

Restricted Stock Units.  The fair value of each restricted stock unit (“RSU”) award is determined based on the closing market price of the Company’s stock on the grant date and amortized to compensation expense on a straight-line basis over the vesting period.  The Company granted 17,500 RSUs with a weighted-average grant date fair value of $9.75 during the quarter ended March 31, 2013, with each award vesting over a three-year period.