Share Based Compensation

6 Months Ended

Jun. 30, 2011

Share Based Compensation

NOTE 11 – SHARE-BASED COMPENSATION

The impact on our results of operations of recording share-based compensation for the three and six months ended June 30, 2011 and June 30, 2010, respectively, are as follows:

	Three Months Ended						Six Months Ended
	June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
(in thousands)
Cost of goods sold	$	12		$	6		$	21		$	13
Research and development		23			11			32			18
Selling, general and administrative		88			65			157			126
Total share-based compensation	$	123		$	82		$	210		$	157
Impact on net income (loss) per share:
Basic and diluted	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)

The fair value of share-based awards for employee stock options was estimated using the Black-Scholes valuation model. The following weighted average assumptions were used to calculate the fair value of stock options granted during the three months and six months ended June 30, 2011 and 2010:

	Three Months Ended		Six Months Ended
	June 30, 2011	June 30, 2010	June 30, 2011	June 30, 2010
Risk-free interest rates	1.41%	1.80%	1.40%	1.80%
Volatility factors	0.55	0.56	0.55	0.56
Expected life of the option in years	4.00	4.00	4.00	4.00
Expected dividend yield	None	None	None	None

Option grants during the six months ended June 30, 2011 were 322,000.

At June 30, 2011, there remained approximately $1,454,699 of unamortized expected future compensation expense associated with unvested option grants and restricted stock awards, with a remaining weighted average amortization period of 3.04 years.