Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2013

Summary Of Significant Accounting Policies [Abstract]

Summary of Assumptions

A summary of the assumptions used in the Black-Scholes option pricing model for 2013 and 2012 are as follows:

	2013		2012
Dividend yield(1)		0.0%		0.0%
Expected volatility(2)	54.88% to 55.08%		53.12% to 54.49%
Risk-free interest rate(3)	1.28% to 2.02%		1.01% to 1.61%
Expected life(4)	7.0 years		7.0 years

(1) A dividend yield of 0.0% is utilized because cash dividends have never been paid.

(2) Expected volatility is based on Bloomberg’s seven year volatility calculation for “FRBK” stock.

(3) The risk-free interest rate is based on the seven year Treasury bond.

(4) The expected life reflects a 3 to 4 year vesting period, the maximum ten year term and review of historical behavior.

Summary of Stock-Based Compensation

Information regarding stock based compensation for the nine months ended September 30, 2013 and 2012 is set forth below:

	2013		2012
Stock based compensation expense recognized	$	237,000	$	290,000
Number of unvested stock options		893,563		795,600
Fair value of unvested stock options	$	1,210,840	$	1,426,878
Amount remaining to be recognized as expense	$	597,709	$	548,287

Calculation of EPS

The calculation of EPS for the three and nine months ended September 30, 2013 and 2012 is as follows (in thousands, except per share amounts):

	Three Months Ended September  30,					Nine Months Ended September 30,
	2013			2012		2013			2012
Net income (loss) - basic and diluted	$	(2,222	)	$	398	$	(219	)	$	2,710
Weighted average shares outstanding		25,973			25,973		25,973			25,973
Net income (loss) per share – basic	$	(0.09	)	$	0.02	$	(0.01	)	$	0.10
Weighted average shares outstanding (including dilutive CSEs)		25,973			25,996		25,973			25,991
Net income (loss) per share – diluted	$	(0.09	)	$	0.02	$	(0.01	)	$	0.10