STOCK OPTIONS

12 Months Ended

Dec. 31, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 10—STOCK OPTIONS

The Company’s 2002 Incentive Stock Option Plan (the “Current Plan”) authorizes the issuance to employees and directors of options to purchase a maximum of 1,100,000 shares of Class A Common Stock. These options must be issued within ten years of the effective date of the Plan and are exercisable for a ten year period from the date of grant, at prices not less than 100% of the closing market value of the Class A Common Stock on the date the option is granted. Options granted to any 10% stockholder are exercisable for a five year period from the date of grant, at prices not less than 110% of the closing market value of the Class A Common Stock on the date the option is granted. In the event options granted contain a vesting schedule over a period of years, the Company recognizes compensation cost for these awards on a straight-line basis over the service period.

On May 16, 2011, the stock option/compensation committee of Company’s Board of Directors authorized the issuance of 70,000 options to purchase shares of its Class A Common Stock.  The Company granted 15,000 of these options to its Chief Operating Officer/Chief Financial Officer, with the balance to non-executive employees of the Company.  All options granted on May 16, 2011 vest one-third on each of the first three anniversaries of the grant date. Further, all options granted on May 16, 2011 have an exercise price of $4.56.

On December 14, 2010, the stock option/compensation committee of Company’s Board of Directors authorized the issuance of 70,000 options to purchase shares of its Class A Common Stock.  The Company granted 15,000 of these options to its Chief Operating Officer/Chief Financial Officer, with the balance to non-executive employees of the Company.  All options granted on December 14, 2010 vest one-third on the first three anniversaries of the grant date. Further, all options granted on December 14, 2010 have an exercise price of $3.05, which was the closing price of the Company’s common stock on the date of the grant. On July 29, 2010, the Company granted 2,000 fully vested options to a new member of its board of directors. The exercise price of these options is $2.17, which was the closing price of the Company’s common stock on the date of the grant.

The Company estimated the fair value of its common stock options using the following assumptions:

	For the years ended
	December 31, 2011	December 31, 2010
Risk-free interest rate	3.20%	3.17%
Expected term	6.5 years	Ranging from 6.5 to 10.0
Volatility	61.99%	Ranging from 50.7% to 59.5%
Dividend yield	0%	0%
Weighted-average fair value of options granted	$2.80	$1.84

The following table contains information on the status of the Company’s stock options:

	Number of Shares			Weighted Average Exercise Price per share		Aggregate Intrinsic Value
Outstanding, January 1, 2010		514,624		$	7.26
Granted		72,000			3.03
Expired		(1,000	)		11.20
Outstanding, December 31, 2010		585,624			6.73
Granted		70,000			4.56
Expired		(500	)		11.38
Outstanding, December 31, 2011		655,124		$	6.50	$	31,000
Vested, December 31, 2011		480,457		$	7.40	$	12,000

All options that expired in 2011 were issued under the Current Plan.

The following is a summary of changes in non-vested shares, all of which are expected to vest:

	December 31,
	2011					2010
	Option Shares			Weighted Average Grant-Date Fair Value		Option Shares			Weighted Average Grant-Date Fair Value
Non-vested shares, beginning of year		165,333		$	2.19		147,667		$	2.85
Granted		70,000			2.80		70,000			1.85
Vested		(60,666	)		2.05		(52,334	)		3.61
Forfeited		—			—		—			—
Non-vested shares, end of year		174,667		$	2.43		165,333		$	2.19

The Company recognizes compensation cost over the requisite service period. However, the exercisability of the respective non-vested options, which are at pre-determined dates on a calendar year, does not necessarily correspond to the period(s) in which straight-line amortization of compensation cost is recorded.

Other Information

As of December 31, 2011, the Company had approximately $202,000 of total unrecognized compensation cost related to non-vested awards granted under our share-based plans, which we expect to recognize over a weighted-average period of 1.3 years.

There were options available for issuance under the Current Plan as of December 31 of each year as follows: 2011—302,712 and 2010—372,212. All of the options outstanding at December 31, 2011 were issued under the Current Plan.

The following table summarizes information about stock options outstanding and exercisable at December 31, 2011:

	Options outstanding						Options Exercisable
Range of Exercise Prices	Number outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number exercisable		Weighted Average Life		Weighted Average Exercise Price
$6.00		109,436		0.5	$	6.00		109,436		0.5	$	6.00
$7.90  - $8.06		115,688		2.5	$	8.05		115,688		2.5	$	8.05
$14.44 - $16.68		24,500		3.5	$	16.50		24,500		3.5	$	16.50
$11.20 - $11.38		89,500		5.5	$	11.20		89,500		5.5	$	11.20
$4.16		174,000		6.5	$	4.16		116,000		6.5	$	4.16
$2.17		2,000		8.6	$	2.17		2,000		8.6	$	2.17
$3.05		70,000		9.3	$	3.05		23,333		9.3	$	3.05
$4.56		70,000		9.4	$	4.56		-		-	$	-
Total		655,124						480,457