Accounting for Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation

10.Accounting for Stock-Based Compensation

The Company recognized approximately $17,000 and $20,000 in stock-based compensation expense during the three and six months ended June 30, 2012, respectively and had $36,000 of unrecognized compensation as of that date, which will be recognized over the remaining 3.4 years.  For the three and six months ended June 30, 2011, the Company had no stock-based compensation expense.

A summary of option activity under the Company’s employee stock option plan for the six-months ended June 30, 2012, is presented below:

Options	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at beginning of year	48,509		$	2.68
Granted	22,512		$	0.76
Exercised	—		$	—
Expired or forfeited	—		$	—
Outstanding at end of period	71,021		$	2.07	4.5	$	—
Options exercisable at end of period	46,021				4.5	$	—
Weighted-average fair value of options granted during the year	$	0.63