NOTE 12 - SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2012

Note 12 - Share-Based Compensation Tables

Impact on operations of recording share-based compensation

The impact on our results of operations of recording share-based compensation for the year ended December 31, 2012 and 2011 was as follows:

	Year Ended December 31,
	2012			2011
(in thousands)
Cost of goods sold	$	49		$	45
Research and development		112			84
Selling, general and administrative		364			348
Total share-based compensation	$	525		$	477
Impact on net income per share:
Basic and diluted	$	(0.07	)	$	(0.05	)

Weighted average assumptions were used to calculate the fair value of options granted

The following weighted average assumptions were used to calculate the fair value of options granted during the years ended December 31:

	Employee Stock
	Options
	2012			2011
Risk-free interest rates		0.64	%		1.39	%
Volatility factors		0.53			0.55
Expected life of the option in years		4.00			4.00
Expected dividend yield	None			None

Stock option grants

The following table summarizes stock option activity under our stock option plans for the twelve months ended December 31:

	2012							2011
	Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years		Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years
Outstanding at beginning of year		1,038,011		$	4.74				833,841		$	3.94
Granted		390,000			2.37				324,500			6.02
Exercised		(29,844	)		3.82				(111,893	)		2.55
Cancelled, Expired or
Forfeited		(239,762	)		4.62				(8,437	)		4.62
Outstanding at end of year		1,158,405		$	4.00		3.43		1,038,011		$	4.74		3.64
Vested or expected to vest at the end of the period		1,046,028		$	4.51		1.98		948,096		$	4.68		2.65
Exercisable at end of year		609,812		$	4.10		1.98		551,000		$	4.36		2.65

Restricted stock award including performance-based stock award activity under our share-based compensation plan

Restricted stock award including performance-based stock award activity under our share-based compensation plan was as follows:

	2012					2011
	Awards			Weighted - Average Grant Date Fair Value		Awards			Weighted - Average Grant Date Fair Value
Outstanding at beginning of year		30,378		$	5.10		25,235		$	4.27
Granted		112,500			2.19		15,200			6.02
Vested		(11,353	)		5.00		(9,485	)		4.35
Cancelled		(1,525	)		4.11		(572	)		5.16
Outstanding at end of year		130,000		$	2.60		30,378		$	5.10

Unvested options grants and restricted stock awards

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

	December 31, 2012		December 31, 2011
Unamortized future compensation expense	$	1,040,385	$	1,181,876
Remaining weighted average amortization period in years		2.65		2.65