Common Stock and Stock Options

9 Months Ended

Sep. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

Note 3. Common Stock and Stock Options

Stock Based Compensation - Compensation cost for all stock-based awards is based on the grant date fair value and recognized over the required service (vesting) period. Non cash stock based compensation expense was $31,415 and $27,056 for the three months ended September 30, 2012 and 2011, respectively. Non cash stock based compensation expense was $102,294 and $88,349 for the nine months ended September 30, 2012 and 2011, respectively. Unrecognized compensation expense was $531,203 as of September 30, 2012 and will be recognized through 2017. There was no tax benefit recorded for this compensation cost as the expense primarily relates to incentive stock options that do not qualify for a tax deduction until, and only if, a qualifying disposition occurs.

During the nine months ended September 30, 2012, the four non-employee board members each received compensation of 4,500 shares of common stock of the Company.

During the nine months ended September 30, 2011, a total of 8,000 stock options were exercised at an average price of $1.52. The total cash proceeds were $12,150.

The cumulative status of options granted and outstanding at September 30, 2012, and December 31, 2011, as well as options which became exercisable in connection with the Stock Option Plans is summarized as follows:

Employee Stock Options

				Weighted
				Average
	Stock Options			Exercise Price
Outstanding at January 1, 2011		783,750		$	4.35
Exercised		(17,000	)		1.55
Expired		(30,000	)		1.90
Outstanding at December 31, 2011		736,750		$	4.52
Expired		(144,500	)		1.59
Outstanding at September 30, 2012		592,250		$	5.23
Options exercisable at December 31, 2011		419,375		$	3.41
Options exercisable at September 30, 2012		322,250		$	4.59

Non-Employee Director Stock Options

				Weighted
				Average
	Stock Options			Exercise Price
Outstanding at January 1, 2011		282,500		$	3.60
Exercised		(10,000	)		1.50
Expired		(22,500	)		1.46
Outstanding at December 31, 2011		250,000		$	3.87
Outstanding at September 30, 2012		250,000		$	3.87
Shares exercisable at December 31, 2011		250,000		$	3.87
Shares exercisable at September 30, 2012		250,000		$	3.87

Exercise prices for options ranged from $1.00 to $6.00 at September 30, 2012. The weighted average option price for all options outstanding was $4.83 with a weighted average remaining contractual life of 4.3 years.