NOTE 11 - SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2013

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, net of forfeitures, for the three months ended March 31, 2013 and 2012, respectively, was as follows:

	Three Months Ended
	March 31, 2013	March 31, 2012
(in thousands)
Cost of goods sold	$11	$12
Research and development	20	26
Selling, general and administrative	39	93
Total share-based compensation	$70	$131
Impact on net earnings per share:
Basic and diluted	($0.01)	($0.01)

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 ended March 31, 2013 and 2012:

	Three Months Ended
	March 31, 2013	March 31, 2012
Risk-free interest rates	0.68%	0.70%
Volatility factors	0.54	0.52
Expected life of the option in years	4.00	4.00
Expected dividend yield	None	None

Stock option grants during the three months ended March 31, 2013 and 2012 were as follows:

	Three Months Ended
	March 31, 2013	March 31, 2012
Stock Options Granted	30,000	15,000

The remaining unamortized expected future compensation expense and remaining amortization period associated with unvested option grants and restricted stock awards at March 31, 2013 are:

	March 31, 2013
Unamortized future compensation expense	$879,684
Remaining weighted average amortization period in years	2.57