NOTE 10 - SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2015

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, 2015 and 2014, respectively, was as follows:

	Three Months Ended		Six Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
(in thousands)
Cost of goods sold	$6	$5	$8	$1
Research and development	22	25	41	40
Selling, general and administrative	120	95	189	170
Total share-based compensation	$148	$125	$238	$211
Impact on net earnings per share:
Basic and diluted	($0.02)	($0.02)	($0.03)	($0.03)

Equity awards granted during the three and six months ended June 30, 2015 and 2014 were as follows:

	Three Months Ended		Six Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Restricted Stock	193,800	-	193,800	-
Stock Options	-	3,000	-	3,000

Non-employee directors Restricted Stock Units (“RSU’s”) generally vest over one year, employee RSU’s vest over four years with the expense being recognized over the vesting period.

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, 2015 and 2014:

	Three Months Ended		Six Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Risk-free interest rates	-	1.31%	-	1.31%
Volatility factors	-	0.51	-	0.51
Expected life of the option in years	-	4.00	-	4.00
Expected dividend yield	-	None	-	None

There were no stock option awards in 2015.

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, 2015 are:

	Jun. 30, 2015
Unamortized future equity compensation expense	$1,228,605
Remaining weighted average amortization period in years	2.96