Stock-based Compensation

3 Months Ended

Mar. 31, 2013

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

Stock-based Compensation

Stock-based Compensation

During the three months ended March 31, 2013, 3,800 options were vested. During the three months ended March 31, 2012, 5,100 options were vested. At March 31, 2013, there were 14,700 options unvested and no shares available for grants of options other than shares available under the Company's 2008 Omnibus Stock Ownership and Long Term Incentive Plan (the "Omnibus Plan"). Total options outstanding at March 31, 2013 were 254,667.

During the quarter ended March 31, 2013, 5,000 options were granted. The weighted average fair value of the options granted was $2.52 and was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: dividend yield of 0.00%; expected volatility of 101.70%: risk-free interest rate of 1.00%; and expected life of 7 years. There were five thousand options granted during the first three months ended March 31, 2012. There were no options exercised for the three months ended March 31, 2013 or 2012.

As of March 31, 2013, there are 623,782 restricted shares outstanding, of which 96,162 shares of restricted stock are vested and 527,620 shares are nonvested. As of December 31, 2012, there were 623,782 restricted shares outstanding, of which 43,663 shares of restricted stock were vested and 580,119 shares are nonvested. There were no shares of restricted stock issued during the three months ended March 31, 2013 or 2012.

The compensation expense related to options and restricted shares was $128,490 for the three month period ended March 31, 2013 . The compensation expense related to options and restricted shares was $35,862 for the three month period ended March 31, 2012. As of March 31, 2013 and December 31, 2012, there was $877,513 and $993,423, respectively, 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 1.9 years.