9. Stockholders' Equity

6 Months Ended

Jun. 30, 2012

Equity [Abstract]

9. Stockholders' Equity

Dividend Declared

Dividends declared and paid on Common Stock was $226,829 and $-0- for the six months ended June 30, 2012 and 2011, respectively. Dividends declared and paid on Common Stock was $113,432 and $-0- for the three months ended June 30, 2012 and 2011, respectively. The Company’s Board of Directors approved a quarterly dividend on August 13, 2012 of $.04 per share payable in cash on September 18, 2012 to stockholders of record as of August 31, 2012.

Stock Options

In December 2005, the Company’s shareholders ratified the adoption of the 2005 Equity Participation Plan (the “2005 Plan”), which provides for the issuance of incentive stock options, non-statutory stock options and restricted stock. Under the 2005 Plan, a maximum of 300,000 shares of Common Stock were permitted to be issued pursuant to options granted and restricted stock issued.  In March 2010, the Board of Directors of the Company increased the number of shares of Common Stock authorized to be issued pursuant to the 2005 Plan to 550,000, subject to stockholder approval.  In June 2010, the stockholders approved the increase to 550,000 shares.  Incentive stock options granted under the 2005 Plan expire no later than ten years from date of grant (except no later than five years for a grant to a 10% stockholder). The Board of Directors or the Stock Option Committee will determine the expiration date with respect to non-statutory options, and the vesting provisions for restricted stock, granted under the 2005 Plan.

The results of operations for the six months ended June 30, 2012 and 2011 include share-based stock option compensation expense totaling $30,111 and $64,148, respectively. The results of operations for the three months ended June 30, 2012 and 2011 include share-based stock option compensation expense totaling $10,000 and $24,000, respectively. Share-based compensation expense related to stock options is net of estimated forfeitures of 21% for the six months and three months ended June 30, 2012 and 2011, respectively. Such amounts have been included in the Condensed Consolidated Statements of Operations and Comprehensive Income within other operating expenses.

Stock option compensation expense in 2012 and 2011 is the estimated fair value of options granted amortized on a straight-line basis over the requisite service period for the entire portion of the award. No stock options were granted during the six months ended June 30, 2012 and 2011.

A summary of option activity under the Company’s 1998 Stock Option Plan (terminated in November, 2008) and the 2005 Plan as of June 30, 2012, and changes during the six months then ended, is as follows:

Stock Options	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2012		393,865		$	2.32		2.28	$	498,913
Granted		-		$	-		-	$	-
Exercised		(95,000	)	$	2.12		-	$	243,075
Forfeited		-		$	-		-	$	-
Outstanding at June 30, 2012		298,865		$	2.39		2.13	$	852,540
Vested and Exercisable at June 30, 2012		221,648		$	2.37		2.01	$	636,616

The aggregate intrinsic value of options outstanding and options exercisable at June 30, 2012 is calculated as the difference between the exercise price of the underlying options and the market price of the Company’s Common Stock for the options that had exercise prices that were lower than the $5.24 closing price of the Company’s Common Stock on June 30, 2012. The total intrinsic value of options exercised in the six months ended June 30, 2012 was $243,075, determined as of the date of exercise. The Company received cash proceeds of $47,073 from 20,000 options exercised in the six months end June 30, 2012. The remaining 75,000 options exercised in 2012 were cashless exercises. No stock options were exercised in the six months ended June 30, 2011.

Participants in the 2005 Plan may exercise their outstanding vested options, in whole or in part, by having the Company reduce the number of shares otherwise issuable by a number of shares having a fair market value equal to the exercise price of the option being exercised (“Cashless Exercise”). The Company received cash proceeds of $47,073 from 22,500 options exercised in the six months end June 30, 2012. The remaining 72,500 options exercised in 2012 were Cashless Exercises. No stock options were exercised in the six months ended June 30, 2011.

As of June 30, 2012, the fair value of unamortized compensation cost related to unvested stock option awards was approximately $25,000. Unamortized compensation cost as of June 20, 2012 is expected to be recognized over a remaining weighted-average vesting period of .79 years.