Note 13 - Stock Based Compensation

12 Months Ended

Dec. 31, 2013

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

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

13.     STOCK BASED COMPENSATION

Stock Option Plan—The Stock Option Plan (“SOP”) provided for a committee of the Company’s Board of Directors to award incentive stock options, nonqualified or compensatory stock options and stock appreciation rights representing up to 1,030,750 shares of Company stock. The SOP expired during 2007, so no further option grants will be made. There was no compensation expense attributable to options granted under this plan during 2013 or 2012. As of December 31, 2013, 804 shares remain unexercised with exercise prices ranging from $96.25 to $127.50 per share and expiration dates ranging from January 2014 through January 2016.

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. Shares issued in connection with stock compensation awards are issued from available authorized shares.

Stock Options. 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. 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. The fair values of stock options granted during the year ended December 31, 2012 were estimated based on the following average assumptions: expected term of seven years, annual dividend rate of 0%, risk free interest rate of 1.25%, volatility rate of 50.38% and expected forfeiture rate of 4%. No stock options were granted during the year ended December 31, 2013.

A summary of the stock option activity in the Company’s 2011 Plan for the years ended December 31, 2013 and 2012, is presented below:

	Shares Underlying Awards			Weighted Average Exercise Price
Outstanding—January 1, 2012		236,000		$	6.23
Granted		67,500		$	7.96
Forfeited		(80,000	)	$	6.52
Outstanding—December 31, 2012		223,500		$	6.65
Granted		--		$	--
Forfeited		(6,000	)	$	6.57
Outstanding—December 31, 2013		217,500		$	6.66

The weighted average remaining contractual life of the outstanding options was 4.95 years and the aggregate intrinsic value of the options was approximately $454,000 at December 31, 2013. The weighted average grant date fair value of options granted during 2012 was $3.88. None of the outstanding options were exercisable at December 31, 2013 or 2012.

As of December 31, 2013, there was $448,000 of total unrecognized compensation costs related to nonvested stock options under the 2011 Plan. The cost is expected to be recognized over a weighted-average period of 3.1 years. Compensation expense attributable to option awards totaled approximately $146,000 and $147,000 for the years ended December 31, 2013 and 2012, respectively.   

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 vesting periods range from three to seven years.

A summary of the restricted stock unit activity in the Company’s 2011 Plan for the year ended December 31, 2013, is presented below:

	Restricted Stock Units		Weighted Average Grant Date Fair Value
Outstanding—January 1, 2013		--	$	--
Granted		65,500	$	8.97
Forfeited		--	$	--
Outstanding—December 31, 2013		65,500	$	8.97

As of December 31, 2013, there was $490,000 of total unrecognized compensation costs related to nonvested RSUs under the 2011 Plan. The cost is expected to be recognized over a weighted-average period of 4.2 years. None of the RSUs are vested at December 31, 2013. Compensation expense attributable to awards of RSUs totaled approximately $97,000 for the year ended December 31, 2013. There were no RSU awards outstanding in 2012, therefore there was no compensation expense recorded during 2012.