Note E - Benefit Plans

12 Months Ended

Dec. 31, 2011

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE E - BENEFIT PLANS

Defined Benefit Pension Plan

The Company previously sponsored a non-contributory defined benefit pension plan (“DB Plan”) for its employees. The Company curtailed future benefit accruals to the DB Plan, which had been frozen since December 31, 2007. In March 2010, the Company received regulatory approval to terminate the DB Plan, and on July 13, 2010 the DB Plan was formally terminated. The termination resulted in the Company recognizing a one-time non-cash expense of $518,296, offset by a $179,641 tax benefit associated with recognizing unamortized actuarial losses.  In addition, the Company provided for a cash contribution of $337,378, offset by a $116,900 tax benefit, in order to fully fund the DB Plan.  The recognition of the non-cash and cash contributions resulted in a before-tax charge of $847,744, and an after-tax charge of $559,133 ($0.12 per share) for the year ended December 31, 2010. Since the non-cash expense had previously been provided for as a charge to other comprehensive income, the net effect of the termination on stockholders’ equity was a decrease of $220,478.

The table below sets forth a summary of changes in the fair value of the Plan’s Level 3 assets for the years ended December 31, 2011 and 2010:

	2011		2010
Balance, beginning of year	$	---	$	1,564,634
Realized gains		---		---
Unrealized (losses) relating to instruments still held at reporting date		---		---
Purchases, sales, issuances and settlements (net)		---		(1,564,634	)
Balance, end of year	$	---	$	0

The following table sets forth the Plan's funded status as of December 31, 2011 and 2010:

	2011		2010
Change in Benefit Obligation:
Projected benefit obligation at beginning of year	$	---	$	2,130,044
Interest cost		---		---
Actuarial loss		---		337,378
Benefits paid		---		---
Effect of settlement/curtailment		---		(2,467,422	)
Projected benefit obligation at end of year	$	---	$	0
Change in Plan Assets:
Fair value of Plan assets at beginning of year	$	---	$	2,021,152
Actual return on Plan assets		---		---
Employer contributions		---		446,270
Benefits paid		---		---
Effect of settlement		---		(2,467,422	)
Fair value of Plan assets at end of year	$	---	$	0
Funded status at end of year - (underfunded) overfunded	$	---	$	---
Amounts recognized in statement of financial position:
Current liability	$	---	$	---
Non-current asset		---		---
Total	$	---	$	---
Amounts recognized in accumulated Other Comprehensive Income ("OCI"):
Total net (gain)	$	---	$	---
Total accumulated OCI (not adjusted for applicable tax)	$	---	$	---
Weighted-average assumptions used to determine benefit obligations:
Discount rate		N/A		N/A
Rate of compensation increase		N/A		N/A

The net periodic pension (benefit) cost includes the following components:

	2011		2010
Components of net periodic pension (benefit) cost
Interest cost	$	---	$	---
Expected return on Plan assets		---		---
Amortization of net actuarial loss		---		---
Effect of special events		---		---
Net periodic pension (benefit) cost	$	---	$	---
Other changes recognized in OCI
Net (gain)	$	---	$	(518,297	)
Amortization of net loss		---		---
Amount recognized due to special event		---		---
Total recognized in other comprehensive income	$	---	$	(518,297	)
Total recognized in net periodic benefit cost and OCI	$	---	$	(518,297	)
Weighted-average assumptions used to determine net period pension (benefit) cost
Discount rate		---		---
Expected long-term return on Plan assets		---		---
Rate of compensation increase		---		---

Defined Contribution Plan

The Company sponsors a 401(k) defined contribution plan ("DC Plan") that provides for a dollar-for-dollar employer matching contribution of the first 4% of each employee's pay. Employees become fully vested in employer matching contributions after one year of employment. Company 401(k) matching contributions were approximately $97,000 and $90,000 for each of the years ended December 31, 2011 and 2010.  In 2010 and 2011 employees were able to defer up to $16,500 (plus $5,500 for employees over the age of 50) of their yearly pay as a pre-tax investment in the 401(k)plan, in accordance with limits set by the IRS. (Those limits will increase to $17,000 (plus an additional $5,500 for employees over the age of 50) in 2012).

The Company also makes discretionary contributions to each employee's account based on a "pay-to-pay" safe-harbor formula that qualifies the 401(k) plan under current IRS regulations. In December 2011 and 2010 the Company’s Board of Directors authorized discretionary contributions in the amount of $175,000 per year, to be allocated among all eligible employees, for the 2011 and 2010 plan years. The 2011 contribution was paid in 2011, and the 2010 contribution, which was accrued at December 31, 2010, was paid in January 2011. Employees become vested in the discretionary contributions as follows: 20% after two years of employment, and 20% for each year of employment thereafter until the employee becomes fully vested after six years of employment.

Stock Option Plans

At its meeting on March 19, 2004 the Board of Directors of the Company approved the adoption of the 2004 Stock Option Plan. The plan authorizes the granting of options for up to 500,000 shares, and  covers both employees and directors. The adoption and implementation of the new plan was ratified by the shareholders of the Company at the Company's annual meeting of shareholders on May 19, 2004.

As of December 31, 2011 and 2010, no stock options had been issued under this plan.

As of December 31, 2011 and 2010, there was no remaining unrecognized compensation cost related to the non-vested share-based compensation arrangements granted under the Company's plans.

The Company did not record any share-based compensation expense during the years ended December 31, 2011 and 2010.