Note 4. Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

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

4)     STOCK BASED COMPENSATION:

The Company has a stock based compensation plan, which is described as follows:

The Company's Stock Option Plan (the “Plan”) provides for the grant of stock options that are either “incentive” or “non-qualified” for federal income tax purposes. The Plan provides for the issuance of a maximum of 184,000 shares of common stock (subject to adjustment pursuant to customary anti-dilution provisions). Stock options vest over a period of between one to four years.

The exercise price per share of a stock option is established by the Compensation Committee of the Board of Directors in its discretion but may not be less than the fair market value of a share of common stock as of the date of grant. The aggregate fair market value of the shares of common stock with respect to which “incentive” stock options first become exercisable by an individual to whom an “incentive” stock option is granted during any calendar year may not exceed $100,000.

Stock options, subject to certain restrictions, may be exercisable any time after full vesting for a period not to exceed ten years from the date of grant. Such period is established by the Company in its discretion on the date of grant. Stock options terminate in connection with the termination of employment.

Information with respect to options under the Company's Plan is as follows:

				Weighted
		Number of		Average
		Shares		Exercise Price
Balance - June 30, 2012			8,000	$	14.55
	Granted during 3rd Qtr 2012		-		-
	Exercised during 3rd Qtr 2012		-		-
	Forfeitures during 3rd Qtr 2012		-		-
Balance - September 30, 2012			8,000	$	14.55

The following table summarizes the status of the stock options outstanding and exercisable at September 30, 2012:

Stock Options Outstanding
								Number of
			Weighted				Weighted-	Stock
Exercise Price			Average		Number of		Remaining	Options
Range			Exercise Price		Options		Contractual Life (years)	Exercisable
$12.00	-	$24.00	$	14.55		8,000	3.59		8,000
						8,000			8,000

At September 30, 2012, 8,000 stock options were exercisable with a weighted average exercise price of $14.55.