EMPLOYEE SHARE-BASED COMPENSATION BENEFITS

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

NOTE 6 — EMPLOYEE SHARE-BASED COMPENSATION BENEFITS

The Company adopted its 2006 Employee, Director and Consultant Stock Plan (the “2006 Plan”) in October 2006. In addition to stock options, the Company may also grant restricted stock or other share-based awards under the 2006 Plan. The maximum number of shares issuable over the term of the 2006 Plan, as amended, is limited to 3,500,000 shares.

The Company adopted its 2011 Employee, Director and Consultant Stock Plan (the “2011 Plan”) in June 2011.  In addition to stock options, the Company may also grant restricted stock or other share-based awards under the 2011 Plan. The maximum number of shares issuable over the term of the 2011 Plan is limited to 3,000,000 shares.  The 2006 Plan will continue according to its terms.

The Plans permit the granting of stock options and restricted stock to employees (including employee directors and officers) and consultants of the Company and non-employee directors of the Company. Options granted under the Plan have an exercise price of at least 100% of the fair market value of the underlying stock on the grant date and expire no later than ten years from the grant date. The options generally vest over four years with 25% of the option shares becoming exercisable one year from the date of grant and the remaining 75% annually or quarterly over the following three years. The Compensation committee of the Board of Directors, as administrator of the Plan, has the discretion to use a different vesting schedule.

Stock Options

The Company recognized compensation expense for stock options of approximately $52,000 and $47,000 for the three months ended June 30, 2012 and 2011, respectively, and approximately $103,000 and $91,000 for the six months ended June 30, 2012 and 2011, respectively, related to stock options issued to employees and consultants, which is included in selling, general and administrative expense on the accompanying condensed consolidated statements of operations. The Company granted to employees 83,000 and 2,000 stock options with a total fair value of $110,000 and $1,000 during the three months ended June 30, 2012 and 2011, respectively. For the six months ended June 30, 2012 and 2011, the Company granted to employees 456,000 and 284,000 stock options with a total fair value of $500,000 and $265,000, respectively.

Restricted Stock

During the three months ended June 30, 2012, the Company granted to certain employees and members of its Board of Directors restricted stock. This includes shares issued to non-employee members of the Company’s Board of Directors who elected to be paid a portion of their annual fees in restricted stock. Total noncash compensation expense is recorded in selling, general and administrative (“SG&A”) expenses.

Amounts in thousands	Employees		Non-Employee Members of Board of Directors		Total
Three months ended June 30, 2012
Restricted stock shares granted		71		16		87
Fair value of shares granted	$	160	$	37	$	197
Restricted stock compensation expense	$	58	$	37	$	95

Amounts in thousands	Employees		Non-Employee Members of Board of Directors		Total
Six months ended June 30, 2012
Restricted stock shares granted		281		32		313
Fair value of shares granted	$	527	$	75	$	602
Restricted stock compensation expense	$	115	$	74	$	189