NOTE 10 - SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2014

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 reduced for estimated forfeitures.  

The impact on our results of operations of recording share-based compensation, net of forfeitures, for the three and six months ended June 30, 2014 and 2013, respectively, was as follows:

	Three Months Ended		Six Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
(in thousands)
Cost of goods sold	$5	$13	$1	$24
Research and development	25	28	40	48
Selling, general and administrative	95	95	170	134
Total share-based compensation	$125	$136	$211	$206
Impact on net earnings per share:
Basic and diluted	($0.02)	($0.02)	($0.03)	($0.03)

Stock option grants during the three and six months ended June 30, 2014 and 2013 were as follows:

	Three Months Ended		Six Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Stock Options Granted	3,000	3,000	3,000	33,000

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 and six months ended June 30, 2014 and 2013:

	Three Months Ended		Six Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Risk-free interest rates	1.31%	0.50%	1.31%	0.66%
Volatility factors	0.51	0.54	0.51	0.54
Expected life of the option in years	4.00	4.00	4.00	4.00
Expected dividend yield	None	None	None	None

The remaining unamortized expected future equity compensation expense and remaining amortization period associated with unvested option grants, restricted stock awards and restricted stock unit awards at June 30, 2014 are:

	Jun. 30, 2014
Unamortized future equity compensation expense	$1,084,585
Remaining weighted average amortization period in years	2.96