NOTE 10 - SHARE-BASED COMPENSATION

9 Months Ended

Sep. 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 nine months ended September 30, 2015 and 2014, respectively, was as follows:

	Three Months Ended		Nine Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
(in thousands)
Cost of goods sold	$2	$2	$11	$4
Research and development	18	20	58	60
Selling, general and administrative	73	68	261	237
Total share-based compensation	$93	$90	$330	$301
Impact on net earnings per share:
Basic and diluted	($0.01)	($0.01)	($0.04)	($0.04)

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

	Three Months Ended		Nine Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
(in thousands)
Restricted Stock	-	-	193.8	188.9
Stock Options	-	-	-	3.0

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 nine months ended September 30, 2015 and 2014:

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

There were no stock option awards in 2015 or in the third quarter of 2014.

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 September 30, 2015 are:

	Sep. 30, 2015
(in thousands unless specified)
Unamortized future equity compensation expense	$1,133
Remaining weighted average amortization period in years	2.76