Stockholders' Equity

9 Months Ended

Sep. 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 September 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:

	Number of Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding December 31, 2009		44,500		$	8.52
Granted		—		$	—
Exercised		—		$	—
Expired		(15,000	)	$	9.93
Outstanding September 30, 2010		29,500		$	7.81	$	97,780
Exerciseable September 30, 2010		10,000		$	7.87	$	32,475
Outstanding December 31, 2010		39,500		$	8.40
Granted		—		$	—
Exercised		—		$	—
Expired		(4,500	)	$	6.35
Outstanding September 30, 2011		35,000		$	8.66	$	51,538
Exerciseable September 30, 2011		18,750		$	8.24	$	81,450

As of September 30, 2011 and December 31, 2010, there was $17,434 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 September 30, 2011:

Grant Date		Exercise Price		Number Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Number Exercisable		Weighted Average Exercise Price
	12/1/2008	$	7.10		10,000	$	7.10		7.17		7,500	$	7.10
	6/3/2009	$	8.44		5,000	$	8.44		2.67		3,750	$	8.44
	12/1/2009	$	8.85		10,000	$	8.85		8.17		5,000	$	8.85
	12/1/2010	$	10.15		10,000	$	10.15		9.17		2,500	$	10.15
					35,000						18,750

During the three and nine months ended September 30, 2011, the Company recorded $4,796 and $14,389, respectively ($2,998 and $8,995, 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 nine months ended September 30, 2010, the Company recorded $4,703 and $14,109, respectively ($2,916 and $8,748, 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.