Stockholders Equity

6 Months Ended

Jun. 30, 2011

Stockholders' Equity [Abstract]

Stockholders' Equity

Note 6 — Stockholders’ Equity

2002 Stock Option Plan

The Energy West Incorporated 2002 Stock Option Plan (the “Option Plan”) provides for the issuance of up to 300,000 options to purchase the Company’s common stock to be issued to certain key employees. As of June 30, 2011 and December 31, 2010, there are 35,000 and 39,500 options outstanding, respectively. The maximum number of shares available for future grants under this plan is 58,000 shares. Under the Option Plan, the option price may not be less than 100% of the common stock fair market value on the date of grant (in the event of incentive stock options, 110% of the fair market value if the employee owns more than 10% of the outstanding common stock). Pursuant to the Option Plan, the options vest over four to five years and are exercisable over a five to ten-year period from date of issuance.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model.

A summary of the status of the stock option plans as follows:

				Weighted		Aggregate
	Number of			Average		Intrinsic
	Shares			Exercise Price		Value
Outstanding December 31, 2009		44,500		$	8.52
Granted		—		$	—
Exercised		—		$	—
Expired		(15,000	)	$	9.93
Outstanding June 30, 2010		29,500		$	7.81	$	90,110
Exerciseable June 30, 2010		10,000		$	7.87	$	29,875

				Weighted		Aggregate
	Number of			Average		Intrinsic
	Shares			Exercise Price		Value
Outstanding December 31, 2010		39,500		$	8.52
Granted		—		$	—
Exercised		—		$	—
Expired		(4,500	)	$	9.93
Outstanding June 30, 2011		35,000		$	8.66	$	62,038
Exerciseable June 30, 2011		18,750		$	8.24	$	101,050

As of June 30, 2011 and December 31, 2010, there was $12,636 and $31,824 of total unrecognized compensation cost related to stock-based compensation, respectively. That cost is expected to be recognized over a period of three years.

The following information applies to options outstanding at June 30, 2011:

				Weighted
				Average
			Weighted	Remaining		Weighted
			Average	Contractual		Average
Grant	Exercise	Number	Exercise	Life	Number	Exercise
Date	Price	Outstanding	Price	(Years)	Exercisable	Price
12/1/2008	$7.10	10,000	$7.10	7.42	7,500	$7.10
6/3/2009	$8.44	5,000	$8.44	2.93	3,750	$8.44
12/1/2009	$8.85	10,000	$8.85	8.42	5,000	$8.85
12/1/2010	$10.15	10,000	$10.15	9.42	2,500	$10.15
		35,000			18,750

During the three and six months ended June 30, 2011, the Company recorded $5,677 and $9,593, respectively ($3,548 and $6,003, respectively, net of related tax effects), of compensation expense for stock options granted after July 1, 2005, and for the unvested portion of previously granted stock options that remained outstanding as of July 1, 2005. During the three and six months ended June 30, 2010, the Company recorded $4,702 and $9,406, respectively ($2,915 and $5.832, respectively, net of related tax effects), of compensation expense for stock options granted after July 1, 2005, and for the unvested portion of previously granted stock options that remained outstanding as of July 1, 2005.