Stock Option Plan

6 Months Ended

Jun. 30, 2013

Stock Option Plan

Stock Option Plan

Note 7: Stock Option Plan

In fiscal 2004, the Company adopted a Stock Option Plan that provided for the issuance of 142,857 incentive options and 61,224 non-incentive options with respect to authorized common stock. As of June 30, 2013, all options under the 2004 Plan have been granted and (excluding forfeited options), are subject to exercise at the discretion of the grantees, and will expire in August of 2013 unless otherwise exercised or forfeited. The Company accounts for the stock option plan in accordance with the provisions of FASB ASC 718-10. FASB ASC 718-10 requires the recognition of compensation expense related to stock option awards based on the fair value of the option award at the grant date. Compensation cost is then recognized over the vesting period. There were no options granted during the three and six months ended June 30, 2013 and 2012. There was no compensation expense recognized for the stock option plan during the three and six months ended June 30, 2013 and 2012, as all options were fully vested prior to these periods.

A summary of the status of the Company’s stock option plan as of and for the six months ended June 30, 2013, and for the year ended December 31, 2012 is presented below:

	Six months ended June 30, 2013				Year ended December 31, 2012
	Shares		Weighted average exercise price		Shares		Weighted average exercise price
Outstanding at      beginning of period		58,908	$	13.95		63,408	$	13.95
Granted		—		—		—		—
Exercised		—		—		—		—
Forfeited		17,704	$	13.95		4,500	$	13.95
Outstanding at end      of period		41,204	$	13.95		58,908	$	13.95
Options exercisable at      period-end		41,204	$	13.95		58,908	$	13.95

The following information applies to options outstanding at June 30, 2013:

Number outstanding	41,204
Exercise price on all remaining options outstanding	$13.95
Weighted-average remaining contractual life	.17 years