Note 7 - Share Based Payments

3 Months Ended

Mar. 31, 2012

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

(7)         Share Based Payments

We maintain stock compensation plans for our employees and directors, which are described in Note 11, Share Based Payments, in the Notes to Consolidated Financial Statements in our 2011 Annual Report on Form 10-K filed with the SEC on March 22, 2012.  The Company follows FASB ASC topic 718, Compensation — Stock Compensation (“ASC 718”).  ASC 718 requires the recognition of the fair value of stock compensation, including stock options, in net income (loss).  We recognize the stock compensation expense over the requisite service period of the individual grantees, which is generally the same as the vesting period of the grant.  All of our stock compensation is accounted for as an equity instrument.

We did not grant any options to employees or members of our Board of Directors during the first quarters of 2012 or 2011.  The following table summarizes option activity for all of our stock option plans from December 31, 2011 through March 31, 2012:

			Weighted		Weighted		Aggregate
			Average		Average		Intrinsic
			Exercise		Remaining		Value at
			Price per		Contractual		Date
	Options		Share		Term (years)		Indicated
Options outstanding at December 31, 2011		3,050,000	$	0.112		5.87	$	0
Options granted		-		-
Options exercised		-		-
Options forfeited		-		-
Options expired		-		-
Options outstanding at March 31, 2012		3,050,000	$	0.112		5.62	$	0
Options vested and exercisable at December 31, 2011		3,050,000	$	0.112		5.87	$	0
Options vested and exercisable at March 31, 2012		3,050,000	$	0.112		5.62	$	0

The aggregate intrinsic value is the sum of the amounts by which the quoted market price of our common stock at the date indicated exceeded the exercise price of the options (“in-the-money-options”).  At March 31, 2012, the market price of our stock was $0.01 per share, and none of our options were in-the-money.  No options were exercised in the three month period ending March 31, 2012.

The following table summarizes information about stock options outstanding under all of our option plans at March 31, 2012:

		Options Outstanding						Options Exercisable
	Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Years to Expiration		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.11		3,000,000		5.66	$	0.110		3,000,000	$	0.110
$	0.23		50,000		3.07	$	0.230		50,000	$	0.230
			3,050,000		5.62	$	0.112		3,050,000	$	0.112

We did not record any income tax benefits for stock-based compensation arrangements for the three month periods ended March 31, 2012 and 2011, as we have cumulative operating losses and have established full valuation allowances for our income tax benefits.