Note 10 - Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

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

(10) STOCK-BASED COMPENSATION

As of September 30, 2012, we had outstanding stock options and unvested restricted stock awards granted under stock-based employee compensation plans that are described more fully in Note 15 to the consolidated financial statements in our 2011 Form 10-K.

As of September 30, 2012, total compensation expense to be recognized in future periods was $139. The weighted average period over which this expense is expected to be recognized is 1.4 years. All of this expense is related to nonvested shares of restricted stock.

Restricted Stock Awards

We record compensation expense for restricted stock awards (nonvested shares) based on the quoted market price of our stock at the grant date and amortize the expense over the vesting period. Restricted stock awards generally vest over four years. The following table shows the allocation of the compensation expense we recorded during the three and nine months ended September 30, 2012 and 2011, respectively, related to nonvested shares:

	Three Months Ended Sept. 30,				Nine Months Ended Sept. 30,
	2012		2011		2012		2011
Cost of revenues	$	1	$	3	$	5	$	9
Selling expense		3		3		7		13
Engineering and product development expense		7		8		19		34
General and administrative expense		21		18		62		63
	$	32	$	32	$	93	$	119

There was no compensation expense capitalized in the three or nine months ended September 30, 2012 or 2011.

The following table summarizes the activity related to nonvested shares for the nine months ended September 30, 2012:

	Number of Shares			Weighted Average Grant Date Fair Value
Nonvested shares outstanding, January 1, 2012		195,000		$	1.62
Granted		-			-
Vested		(76,250	)		1.62
Forfeited		-			-
Nonvested shares outstanding, September 30, 2012		118,750			1.61

Stock Options

The following table summarizes the stock option activity for the nine months ended September 30, 2012:

	Number of Shares			Weighted Average Exercise Price
Options outstanding, January 1, 2012 (249,000 exercisable)		249,000		$	3.28
Granted		-			-
Exercised		-			-
Forfeited/Expired		(30,000	)		4.11
Options outstanding, September 30, 2012 (219,000 exercisable)		219,000			3.17