Stock-based Compensation

9 Months Ended

Sep. 30, 2011

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

Stock-based Compensation

Stock-based Compensation

During the three and nine months ended September 30, 2011, 2,300 and 22,600 options were vested, respectively. During the three and nine months ended September 30, 2010, 1,100 and 26,300 options were vested, respectively. At September 30, 2011, there were 31,300 options unvested and no shares available for grants of options other than shares available under the Omnibus Plan.

There were no restricted shares granted in the third quarter of 2011. During the first nine months of 2011, there were 145,000 shares of restricted stock granted at an average fair value of $2.34 per share. The fair value of each share grant is based on the closing market price of the stock on the date of issuance. The restricted shares granted to date vest over a three-year period. As of September 30, 2011, 1,666 shares of restricted stock are vested and 161,334 shares are nonvested. There were no restricted shares granted in the third quarter of 2010. During the first nine months of 2010, there were 15,000 shares of restricted stock granted at an average fair value of $4.56 per share. The fair value of each share grant is based on the closing market price of the stock on the date of issuance.

There were no options granted during the first nine months of 2011 or 2010.

The compensation expense related to options and restricted shares was $53,728 for the three-month period ended September 30, 2011 and $144,101 for the nine month period ended September 30, 2011. As of September 30, 2011, there was $391,581 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under all of the Company's stock benefit plans. This cost is expected to be recognized over an average vesting period of 2.2 years. The compensation expense related to options was $24,938 for the three month period ended September 30, 2010 and $68,241 for the nine month period ended September 30, 2010.

There were no options exercised during the three and nine months ended September 30, 2011 and 2010.