Share-Based Compensation

6 Months Ended

Jun. 30, 2011

Share-Based Compensation

Note 2. Share-Based Compensation

The Company accounts for share-based payments pursuant to ASC 718, Stock Compensation and, accordingly, the Company records compensation expense for share-based awards based upon an assessment of the grant date fair value for stock options and restricted stock awards.

Stock compensation expense for stock options is recognized on a straight-line basis over the vesting period of the award. The Company accounts for stock options as equity awards.

The following table summarizes share-based compensation expense recorded in selling, general and administrative expenses during each period presented (in thousands):

	Three Months Ended				Six Month Ended
	June 30, 2011		June 30, 2010		June 30, 2011		June 30, 2010
Stock options	$	8	$	8	$	16	$	16
Total share-based compensation expense	$	8	$	8	$	16	$	16

Stock option activity was as follows:

	Number of Shares		Weighted Average Exercise Price ($)
Balance at January 1, 2011		40,000	$	5.40
Granted		-		-
Exercised		-		-
Forfeited or expired		-		-
Balance at June 30, 2011		40,000	$	5.40

The following table presents information regarding options outstanding and exercisable as of June 30, 2011:

Weighted average contractual remaining term - options outstanding	6.23 years
Aggregate intrinsic value - options outstanding		-
Options exercisable		32,000
Weighted average exercise price – options exercisable	$	5.40
Aggregate intrinsic value - options exercisable		-
Weighted average contractual remaining term - options exercisable	6.23 years

There were no options granted or exercised during the three months or six months ended June 30, 2011.

As of June 30, 2011, future compensation costs related to nonvested stock options was $16 thousand.  Management anticipates that this cost will be recognized over a weighted average period of one year.