NOTE 8: SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2012

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

NOTE 8: SHARE-BASED COMPENSATION

We have a share-based compensation plan, the “2003 Directors, Officers and Consultants Stock Option, Stock Warrant and Stock Award Plan” (the “Plan”). Share-based compensation, and the corresponding income tax benefit related to the expense, is recognized as provided under the applicable authoritative guidance which requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense over the requisite vesting periods based on their fair values. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized. In addition, the realization of tax benefits in excess of amounts recognized for financial reporting purposes will be recognized as a financing activity. The options granted under the Plan have vesting periods that range from immediate vesting to vesting over five years, and the contract terms of the options granted are up to ten years. We expense all stock options on a straight-line basis, net of estimated forfeitures, over the requisite vesting periods.

Summary of Shares of Non-Vested Stock (also commonly referred to as restricted stock)

For the three months ended March 31, 2012 and 2011, we recognized a total of $30 and $28, respectively, of share-based compensation expense related to all outstanding shares of non-vested stock, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.  The unamortized portion of the estimated fair value of non-vested stock was $23 at March 31, 2012.

Summary of Stock Options

During the three months ended March 31, 2012, 333 unexercised stock options, previously granted to an executive in May 2010, were cancelled due to the resignation of the executive in November 2011.  For the three months ended March 31, 2012 and 2011, we recognized a total of $101 and $103, respectively, of share-based compensation expense related to all outstanding options, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.  The unamortized portion of the estimated fair value of outstanding stock options was $301 at March 31, 2012.