NOTE 10 - SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2013

Share-based Compensation [Abstract]

NOTE 10 - 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 and six months ended June 30, 2013 and 2012, respectively, was as follows:

	Three Months Ended		Six Months Ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
(in thousands)
Cost of goods sold	$13	$15	$24	$26
Research and development	28	34	48	60
Selling, general and administrative	95	101	134	195
Total share-based compensation	$136	$150	$206	$281
Impact on net earnings per share:
Basic and diluted	($0.02)	($0.02)	($0.03)	($0.03)

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, 2013 and 2012:

	Three Months Ended		Six Months Ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Risk-free interest rates	0.50%	0.61%	0.66%	0.62%
Volatility factors	0.54	0.53	0.54	0.53
Expected life of the option in years	4.00	4.00	4.00	4.00
Expected dividend yield	None	None	None	None

Stock option grants during the three months and six months ended June 30, 2013 and 2012 were as follows:

	Three Months Ended		Six Months Ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Stock Options Granted	3,000	175,000	33,000	190,000

The remaining unamortized expected future compensation expense and remaining amortization period associated with unvested option grants and restricted stock awards at June 30, 2013 are:

	June 30, 2013
Unamortized future compensation expense	$1,102,965
Remaining weighted average amortization period in years	2.74