Share-Based Compensation

6 Months Ended

Jun. 30, 2012

Share-based Compensation [Abstract]

Share-Based Compensation

Share-Based Compensation:

The Company records compensation expense for all share-based payments based on the estimated grant date fair value.  Share-based compensation expense was approximately $8,800 and $11,200 for the quarters ended June 30, 2012 and 2011, respectively, and $17,700 and $21,600 for the six months ended June 30, 2012 and 2011, respectively.  Share-based compensation is classified as a general and administrative expense.  There were no material tax benefits related to this expense because virtually all share-based compensation resulted from grants of incentive stock options.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

	Quarters Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
			(1)
Weighted average expected life (years)	6.0		—		6.0		8.4
Risk-free interest rate	0.96	%	—	%	0.96	%	3.32	%
Expected volatility	310.09	%	—	%	310.09	%	96.23	%
Expected dividend yield	—	%	—	%	—	%	—	%

__________________

(1) There were no option grants during this period.

A summary of stock option activity for the six months ended June 30, 2012 is as follows:

	Options		Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding on December 31, 2011	1,190,570		$	0.33
Granted	100,000		0.25
Exercised	—		—
Forfeited/canceled	(13,820	)	0.62
Outstanding on June 30, 2012	1,276,750		$	0.32	3.4	$	26,945
Exercisable on June 30, 2012	1,010,660		$	0.30	2.5	$	26,945

A summary of the status of the Company's non-vested stock options as of June 30, 2012 and changes during the six months then ended are presented below:

	Shares		Weighted-Average Grant Date Fair Value per Share
Non-vested stock options at December 31, 2011	179,910		$	0.44
Non-vested stock options granted	100,000		0.25
Vested stock options	—		—
Forfeited stock options	(13,820	)	0.59
Non-vested stock options at June 30, 2012	266,090		0.36

As of June 30, 2012, there was approximately $75,100 of total unrecognized compensation cost related to stock option grants.