Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

3. STOCK-BASED COMPENSATION

We measure stock-based compensation expense based on the grant date fair value of the awards, which is then recognized over the period which service is required to be provided. We estimate the value of our stock option awards on the date of grant using the Black-Scholes option pricing model and amortize that cost over the expected term of the grant. We recognized $41,417 and $116,605 in stock-based compensation expense for the three months ended September 30, 2011 and 2010, respectively. We recognized $144,997 and $361,195 in stock-based compensation expense for the nine months ended September 30, 2011 and 2010, respectively. We expect to recognize the compensation cost related to non-vested options as of September 30, 2011 of $250,751 over the weighted average remaining recognition period of 1.3 years.

We estimate the value of our stock option awards on the date of grant using the Black-Scholes option pricing model. We used the following forward-looking range of assumptions to value each stock option granted to employees and directors during the nine months ended September 30, 2011 and 2010:

	2011		2010
Dividend yield	0.0	%	0.0	%
Risk-free rate of return	1.5	%	1.6	%
Expected life in years	4.75		4.75
Volatility	70	%	70	%
Forfeiture rate	2.6	%	2.6	%