Stock Based Compensation

6 Months Ended

Jun. 30, 2012

Stock Based Compensation [Abstract]

Stock Based Compensation

NOTE 8. STOCK BASED COMPENSATION

The Company has a stock option plan in which the Company can grant to directors, emeritus directors, and employees options for an aggregate of 2,553,600 shares of the Company’s stock. For incentive stock options, the option price shall be not less than the fair market value of such shares on the date the option is granted. If the participant owns shares of the Company representing more than 10% of the total combined voting power, then the price shall not be less than 110% of the fair market value of such shares on the date the option is granted. With respect to nonqualified stock options, the option price shall be set at the Board’s sole and absolute discretion. The option period for all grants will not exceed ten years from the date of grant.

At December 31, 2011, all outstanding options were fully vested and there were no options granted during the three and six month periods ended June 30, 2012 and 2011. Therefore, there was no compensation cost related to share-based payments for the three and six months ended June 30, 2012 and 2011.

The following table represents stock option activity for the three and six months ended June 30, 2012:

	Three Months Ended June 30, 2012				Six Months Ended June 30, 2012
	Shares		Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Options outstanding beginning of period		168,017	$	0.94		178,656		$	0.94
Options forfeited		—		—		—			—
Options exercised		—		—		(10,639	)		0.94
Options outstanding end of period		168,017	$	0.94		168,017		$	0.94		0.4
Outstanding exercisable end of period		168,017	$	0.94		168,017		$	0.94		0.4

The option price for all options outstanding and exercisable at June 30, 2012 was $0.94.

Shares available for future stock options grants to employees and directors under existing plans were 633,600 at June 30, 2012. At June 30, 2012, the aggregate intrinsic value of options outstanding and exercisable was $262,527.