NOTE 10 - SHARE-BASED COMPENSATION

9 Months Ended

Sep. 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 nine months ended September 30, 2013 and 2012, respectively, was as follows:

	Three Months Ended		Nine Months Ended
	Sep 30, 2013	Sep 30, 2012	Sep 30, 2013	Sep 30, 2012
(in thousands)
Cost of goods sold	$11	$11	$35	$38
Research and development	15	28	63	88
Selling, general and administrative	76	84	210	279
Total share-based compensation	$102	$123	$308	$405
Impact on net earnings per share:
Basic and diluted	($0.01)	($0.02)	($0.04)	($0.05)

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, 2013 and 2012:

	Three Months Ended		Nine Months Ended
	Sep 30, 2013	Sep 30, 2012	Sep 30, 2013	Sep 30, 2012
Risk-free interest rates	1.01%	N/A	0.92%	0.62%
Volatility factors	0.54	N/A	0.54	0.53
Expected life of the option in years	4.00	N/A	4.00	4.00
Expected dividend yield	None	N/A	None	None

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

	Three Months Ended		Nine Months Ended
	Sep 30, 2013	Sep 30, 2012	Sep 30, 2013	Sep 30, 2012
Stock Options Granted	100,000	-	133,000	190,000

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

	September 30, 2013
Unamortized future compensation expense	$1,050,535
Remaining weighted average amortization period in years	2.68