Share Based Compensation

6 Months Ended

Jun. 30, 2012

Share Based Compensation

Share Based Compensation

7. Share Based Compensation

Total share based compensation expense for the first six months of fiscal years 2012 and 2011 was approximately $0.2 million and $0.3 million, respectively, and includes compensation expense related to both stock options and stock awards.

In the first six months of 2012, we recorded a reduction of the tax benefit of approximately $1,000 related to the share based compensation and for the first six months of fiscal 2011, we recorded a tax benefit of $32,000. The tax benefit is offset against our valuation allowance for our deferred tax asset.

Stock Options

The following table summarizes the stock option activity for the six months ended June 30, 2012:

	Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding on January 1, 2012	314,700		$	5.11	7.75	$	436,774
Granted	58,800		5.61
Exercised	(13,250	)	3.60
Forfeited/Cancelled	(31,575	)	4.48
Outstanding on June 30, 2012	328,675		$	5.32	7.56	$	126,796
Vested or expected to vest at June 30, 2012	307,665		$	5.36	7.46	$	122,493
Exercisable on June 30, 2012	210,250		$	5.77	6.86	$	88,568

The total fair value of the stock options that vested during the six months ended June 30, 2012 was approximately $120,000.

For the six month period ended June 30, 2012, 13,250 options were exercised and the total intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) was approximately $30,000. The income tax benefit realized from stock option exercises was negligible. There were no stock options exercised in the six months ended July 2, 2011.

Total stock option expense for the six months ended June 30, 2012 was approximately $0.1 million.

As of June 30, 2012, there was approximately $0.2 million of unrecognized share based compensation expense related to unvested stock options that are expected to vest over a weighted-average period of approximately 1.3 years. Options to purchase 328,675 shares were outstanding at June 30, 2012.

Stock Awards

The following table summarizes the stock award activity for the six months ended June 30, 2012:

	Shares		Weighted Average Grant Date Fair Value
Non-vested at January 1, 2012	88,126		$	4.24
Granted	51,200		5.58
Vested	(34,322	)	4.89
Forfeited	(24,375	)	3.92
Non-vested at June 30, 2012	80,629		$	4.92

The total fair value of stock awards that vested during the six months ended June 30, 2012 was approximately $160,000.

Total stock award expense for the six months ended June 30, 2012 was $0.1 million.

As of June 30, 2012, there was $0.2 million of unrecognized compensation expense related to unvested stock awards that were expected to vest over a weighted average period of 1.4 years.