NOTE 11 - SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2014

Note 11 - Share-based Compensation Tables

Impact on operations of recording share-based compensation

	Year Ended December 31,
	2014	2013
(in thousands)
Cost of goods sold	$6	$46
Research and development	80	80
Selling, general and administrative	314	297
Total share-based compensation	$400	$423
Impact on net income per share:
Basic and diluted	($0.05)	($0.05)

Fair value of share-based awards for employee stock options

	Employee Stock
	Options
	2014	2013
Risk-free interest rates	1.31%	0.92%
Volatility factors	0.51	0.54
Expected life of the option in years	4.00	4.00
Expected dividend yield	None	None

Stock option grants

	2014			2013
	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	904,656	$3.49		1,158,405	$4.00
Granted	3,000	2.30		133,000	2.00
Exercised	(31,250)	3.07		-	-
Cancelled, Expired or
Forfeited	(270,219)	4.60		(386,749)	4.50
Outstanding at end of year	606,187	$3.02	3.29	904,656	$3.49	3.52
Vested or expected to vest at the end of the period	574,188	$3.07	3.25	827,155	$4.19	2.54
Exercisable at end of year	383,001	$3.49	2.90	486,141	$3.59	2.54

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

	2014		2013
	Awards	Weighted - Average Grant Date Fair Value	Awards	Weighted - Average Grant Date Fair Value
Outstanding at beginning of year	247,075	$2.18	130,000	$2.60
Granted	189,900	2.88	180,400	1.97
Vested	(85,200)	2.22	(47,375)	2.23
Cancelled	(30,875)	2.28	(15,950)	3.13
Outstanding at end of year	320,900	$2.57	247,075	$2.18

Unvested options grants and restricted stock awards

	December 31, 2014	December 31, 2013
Unamortized future compensation expense	$896,450	$898,625
Remaining weighted average amortization period in years	2.60	2.57