CAPITAL STOCK

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

CAPITAL STOCK

4. CAPITAL STOCK

The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model, with the following weighted average assumptions for options granted in the three months ended March 31, 2012 and 2013.

	Three Months Ended March 31,
	2012	2013
Risk-free interest rate	0.56%		0.54%
Expected lives	3.0 years		3.4 years
Expected volatility	60%		52%
Expected dividend yield	3.43%		0.00%

A summary of the Company's stock option plans, excluding options to purchase fractional shares resulting from the Company's December 2010 1-for-10 reverse stock split is as follows:

		Year Ended December 31, 2012					Three Months Ended March 31, 2013
		Options		Weighted Average Exercise Price			Options	Weighted Average Exercise Price
Outstanding at beginning of period			1,448,675		$	10.425	1,245,161		$	11.054
	Granted at market		137,950		$	9.534	31,230		$	8.344
	Cancelled		(118,330 )		$	11.373	(13,758)		$	5.101
	Exercised		(223,134 )		$	5.863	(17,752)		$	6.430
Outstanding at end of period			1,245,161		$	11.054	1,244,881		$	11.118
Exercisable at end of period			971,029		$	12.129	966,038		$	12.191

The estimated fair value of stock options granted during the three months ended March 31, 2013 and 2012 was computed to be approximately $97 thousand and $13thousand, respectively. The amount is amortized ratably over the vesting period of the options. The per share weighted average estimated fair value of options granted during the three months ended March 31, 2013 and 2012 was computed to be approximately $3.13 and $3.91, respectively. The total intrinsic value of options exercised during the three months ended March 31, 2013 and 2012 was approximately $35 thousand and $652thousand, respectively. The cash proceeds from options exercised during the three months ended March 31, 2013 and 2012 were approximately $84 thousand and $184 thousand, respectively.

The following table summarizes information about stock options outstanding and exercisable at March 31, 2013, excluding outstanding options to purchase an aggregate of 105.1 fractional shares resulting from the Company's December 2010 1-for-10 reverse stock split with a weighted average remaining contractual life of 1.63 years, a weighted average exercise price of $13.71and exercise prices ranging from $4.40 to $31.50. The Company intends to issue whole shares only from option exercises.

	Options Outstanding						Options Exercisable
Exercise Prices	Number of Options Outstanding at March 31, 2013		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price		Number of Options Exercisable at March 31, 2013		Weighted Average Exercise Price
$ 2.70 - $ 6.76		258,803		5.76	$	5.229		189,533		$	5.131
$ 6.77 - $ 8.55		259,423		8.19	$	7.811		63,035		$	7.513
$ 8.56 - $12.40		259,272		3.23	$	9.587		246,087		$	9.575
$12.41 - $16.50		237,811		2.08	$	14.051		237,811		$	14.051
$16.51 - $31.50		229,572		2.47	$	20.182		229,572		$	20.182
$ 2.70 - $31.50		1,244,881		4.43	$	11.118		966,038		$	12.191

As of March 31, 2013, there was approximately $646 thousand of total unrecognized compensation cost related to outstanding stock options. That cost is expected to be recognized over a weighted average period of 2.0 years, with approximately $236 thousand to be recognized in the nine months ending December 31, 2013 and all the cost to be recognized as of February 2017, assuming all options vest according to the vesting schedules in place at March 31, 2013. As of March 31, 2013, the aggregate intrinsic value of outstanding options was approximately $1.5 million and the aggregate intrinsic value of exercisable options was approximately $984 thousand.