Stock Options and Award Programs

3 Months Ended

Mar. 31, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

9.     Stock Options and Award Programs

The Company’s stock incentive plan is administered by the Compensation Committee and authorizes the grant or award of incentive stock options, non-qualified stock options, restricted stock awards, stock appreciation rights, dividend equivalent rights, performance unit awards and phantom shares. The Company issues new shares of common stock upon the exercise of stock options. Any shares associated with options forfeited during the reporting period were added back to the number of shares that underlie stock options to be granted under the stock incentive plan. There have been no changes to the Company’s stock option and award programs since December 31, 2011.

A summary of the stock option and restricted stock award activity under our plans during the three months ended March 31, 2012 is set forth below:

			Weighted
			Average Grant
	# of		Date Fair Value
NON-VESTED OPTIONS	Shares		per Share
Non-vested balances, January 1, 2012		840,000	$	0.70
Granted		400,000	$	0.43
Non-vested balances, March 31, 2012		1,240,000	$	0.61

				Weighted
				Average
	# of			Exercise Price
OUTSTANDING AND EXERCISABLE	Shares			per Share
Outstanding balances, January 1, 2012		3,362,000		$	0.64
Issued		400,000		$	0.69
Canceled		(25,000	)	$	0.54
Outstanding balances, March 31, 2012		3,737,000		$	0.64
Outstanding and exercisable balances, March 31, 2012		2,497,000		$	0.50

The aggregate remaining contractual lives in years for all options outstanding and the portion of such outstanding options that are exercisable on March 31, 2012 were 3.04 and 2.07, respectively. In comparison, the aggregate remaining contractual lives in years for the options outstanding and the portion of such outstanding options that are exercisable on March 31, 2011, were 3.69 and 2.98, respectively.

Aggregate intrinsic value represents total pretax intrinsic value (the difference between WidePoint’s closing stock price on March 31, 2012, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2012. The intrinsic value will change based on the fair market value of WidePoint’s stock. The total intrinsic values of all options outstanding and the portion of such outstanding options that are exercisable as of March 31, 2012, were $1,251,820 and $1,130,820, respectively.
 

Share based compensation represents both stock options based expense and stock grant expense. For the three months ended March 31, 2012 and 2011 the Company recognized shared-based compensation expense of $55,053 and $6,404, respectively. See Note 7 to the condensed consolidated financial statement for discussion about the tax benefit associated with the exercise of stock options.

At March 31, 2012, the Company had approximately $442,000 of total unamortized compensation expense, net of estimated forfeitures, related to stock option plans that will be recognized over the weighted average remaining period of 3.3 years.