Note 11 - Stockholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity Note Disclosure [Text Block]

11.  STOCKHOLDERS' EQUITY

a) Stock Option Plan

In connection with its 2007 Director Non-Qualified Stock Option Plan for non-employee directors, we have outstanding options to purchase our common stock.  The plan provides for the granting of non-qualified options at the discretion of the Compensation Committee of the Board of Directors.  Options are granted at the fair market value of the underlying common stock at the date of grant and vest after six months.  We have reserved 100,000 shares of common stock for issuance under this plan.

We had two other stock options plans from 1995 which provided stock option grants to officers, key employees, and non-employee directors.  These plans expired in 2005.  The expiration of the plans had no effect on the options previously granted.

All options expire ten years from date of grant and are exercisable at any time after vesting.  Of the 100,000 shares available for issuance, there are 33,400 un-optioned shares available for future grants.

A summary of stock option transactions for the years ended December 31, 2012, 2011, and 2010, is as follows:

	2012					2011				2010
	Option Shares			Weighted Average Exercise Price		Option Shares		Weighted Average Exercise Price		Option Shares			Weighted Average Exercise Price
Outstanding at January 1		115,600		$	4.40		103,600	$	4.35		197,700		$	2.23
Granted		12,000			5.27		12,000		4.80		42,600			4.59
Forfeited or expired		-			-		-		-		-			-
Exchanged		-			-		-		-		-			-
Exercised		(6,000	)		3.50		-		-		(136,700	)		1.65
Outstanding at December 31		121,600		$	4.53		115,600	$	4.40		103,600		$	4.35
Exercisable at end of year		121,600		$	4.53		115,600	$	4.40		70,000		$	4.33
Weighted-average fair value of options granted during year	$	0.83				$	1.19			$	1.42

The following table summarizes outstanding options into groups based upon exercise price ranges at December 31, 2012:

			Options Outstanding						Options Exercisable
Exercise Price Range			Option Shares		Weighted Average Exercise Price		Weighted Average Maturity (Years)		Option Shares		Weighted Average Exercise Price		Weighted Average Maturity (Years)
$2.72	to	$3.90		4,000	$	3.885		1.24		4,000	$	3.885		1.24
$3.91	to	$5.30		117,600		4.553		4.96		117,600		4.553		4.96
				121,600	$	4.53		4.83		121,600	$	4.53		4.83

b) Stock Repurchase Program

On February 27, 2009, our Board of Directors authorized a share repurchase program of up to 1 million shares of our common stock at prevailing market prices not to exceed $2.85.  The share repurchase program commenced on April 1, 2009.  On December 4, 2009, our Board amended the repurchase program to increase the maximum purchase price to $3.70.  The plan terminated on December 10, 2010.  We repurchased a total of 2,300 and 60,927 shares in 2010 and 2009, respectively, for a total purchase price of $207,683.

c) Cash Dividend

In May 2010, our Board of Directors authorized a $0.75 per share special one-time cash dividend that was paid to stockholders of record at the close of business on June 3, 2010. The dividend, totaling $7.7 million, was paid to stockholders on July 5, 2010.  We did not make any dividend payments during 2011.

In February 2012, our Board of Directors authorized a $0.25 per share special one-time cash dividend that was paid to stockholders of record at the close of business on March 1, 2012. The dividend, totaling $2.5 million, was paid to stockholders on April 2, 2012.  We released the funds used to pay for the special one-time cash dividend on March 29, 2012 and the dividend, totaling $2.5 million, was paid to stockholders on April 2, 2012.

Our Board will determine future cash dividends after giving consideration to our then existing levels of profit and cash flow, capital requirements, current and forecasted liquidity, as well as financial and other business conditions existing at the time.