Common Stock Options And Stock Purchase Plan

12 Months Ended

Dec. 31, 2012

Common Stock Options And Stock Purchase Plan [Abstract]

Common Stock Options And Stock Purchase Plan

Note 8. Common Stock Options and Stock Purchase Plan

Stock options

The 1997 Stock Option Plan includes both nonqualified and incentive stock options. Payment for the shares may be made in cash, shares of the Company’s Common Stock or a combination thereof. Under the terms of the plan, incentive stock options are granted at 100% of fair market value on the date of grant and may be exercised at various times depending upon the terms of the option. The nonqualified stock options were granted to directors to purchase shares of the Company’s Common Stock. All existing options expire 10 years from the date of grant or one year from the date of death.

The following table summarizes the activity for outstanding incentive stock options to employees of the company:

	Options Outstanding
	Number of		Weighted-		Weighted-	Aggregate
	Shares		Average		Average	Intrinsic Value
			Exercise		Remaining	(1)
			Price		Contractual
					Term
					(in years)
Balance at January 1, 2011		16,480	$	3.06	2.2
Granted		0
Exercised		4,500		2.37
Canceled/forfeited/expired		0
Balance at December 31, 2011		11,980		4.16	2.6
Granted		0
Exercised		0
Canceled/forfeited/expired		0
Balance at December 31, 2012		11,980	$	4.16	1.6		0
Vested and exercisable as of December 31, 2012		11,980	$	4.16	1.6		0

(1) The aggregate intrinsic value is calculated as approximately the difference between the weighted average exercise price of the underlying awards and the Company’s estimated current fair market value at December 31, 2012.

The following table summarizes the activity for outstanding director stock options:

	Options Outstanding
	Number of		Weighted-		Weighted-	Aggregate
	Shares		Average		Average	Intrinsic Value
			Exercise		Remaining	(1)
			Price		Contractual
					Term
					(in years)
Balance at January 1, 2011		5,000	$	5.36	6.3
Granted		0
Exercised		0
Canceled/forfeited/expired		0
Balance at December 31, 2011		5,000		5.36	5.3
Granted		10,000		4.15
Exercised		0
Canceled/forfeited/expired		5,000		5.36
Balance at December 31, 2012		10,000	$	4.15	9.5		0
Vested and exercisable as of December 31, 2012		10,000	$	4.15	9.5		0

(1) The aggregate intrinsic value is calculated as approximately the difference between the weighted average exercise price of the underlying awards and the Company’s estimated current fair market value at December 31, 2012.

As of December 31, 2012 and 2011, respectively there was no unrecognized compensation cost related to stock options that is expected to be recognized over a period of 1-2 years.  To the extent the forfeiture rate is different than we have anticipated, stock-based compensation related to these awards will be different from our expectations.

Stock-based compensation

Pursuant to the 1997 Stock Option Plan (the “Option Plan”), the Company is authorized to grant options to purchase up to 450,000 shares of its Common Stock. As of December 31, 2012, options to purchase an aggregate of 21,980 shares were outstanding and exercisable under the Option Plan, and 250 shares were available for issuance pursuant to awards that may be granted under the Option Plan in the future.

Stock purchase plan

The 1996 Employee Stock Purchase Plan (the “ESPP”) allows employees to set aside up to 10% of their earnings for the purchase of shares of the Company’s Common Stock. The purchase price is the lower of 85% of the market value at the date of the grant or the exercise date, which is six months from the date of the grant.  Under the ESPP, the Company is authorized to sell and issue up to 150,000 shares of its Common Stock to its full-time employees. During 2012 and 2011, 2,335 shares and 3,078 shares, respectively, were issued under the ESPP. At December 31, 2012, 71,956 shares were available for future issuance pursuant to the ESPP.