NOTE 11 - SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2012

Share-based Compensation [Abstract]

NOTE 11 - SHARE-BASED COMPENSATION

NOTE 11 – SHARE-BASED COMPENSATION

For share-based awards granted, we have recognized compensation expense based on the estimated grant date fair value method.  For these awards we have recognized compensation expense using a straight-line amortization method and reduced for estimated forfeitures.  

The impact on our results of operations of recording share-based compensation for the three and nine months ended September 30, 2012 and 2011, respectively, was as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2012	September 30, 2011	September 30, 2012	September 30, 2011
(in thousands)
Cost of goods sold	$11	$12	$38	$33
Research and development	28	26	88	58
Selling, general and administrative	84	97	279	253
Total share-based compensation	$123	$135	$405	$344
Impact on net earnings per share:
Basic and diluted	($0.02)	($0.01)	($0.05)	($0.04)

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 nine months ended September 30, 2012 and 2011:

	Three Months Ended		Nine Months Ended
	September 30, 2012	September 30, 2011	September 30, 2012	September 30, 2011
Risk-free interest rates	N/A	1.39%	0.62%	0.66%
Volatility factors	N/A	0.55	0.53	0.54
Expected life of the option in years	N/A	4.00	4.00	4.00
Expected dividend yield	N/A	None	None	None

Stock option grants during the three and nine months ended September 30, 2012 and 2011 were as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2012	September 30, 2011	September 30, 2012	September 30, 2011
Stock Options Granted	-	1,500	190,000	323,500

The remaining unamortized expected future compensation expense and remaining amortization period associated with unvested option grants and restricted stock awards at September 30, 2012 are:

	September 30, 2012
Unamortized future compensation expense	$993,630
Remaining weighted average amortization period in years	2.38