Share-Based Compensation

6 Months Ended

Jun. 30, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

Note 9 — Share-Based Compensation

We account for our stock option and incentive plans under the recognition and measurement provisions of FASB ASC Topic 718, “Compensation – Stock Compensation,” which require the measurement and recognition of compensation expense for all stock-based awards based on estimated fair values, net of estimated forfeitures. Share-based compensation expense recognized in the three and six months ended June 30, 2011 and 2010 includes compensation cost for all share-based payments granted subsequent to January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of this Topic.

The following amounts were recognized in our Consolidated Statements of Operations for share-based compensation plans for the periods ended June 30 (dollar amounts in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Compensation cost:
Stock options	$	264	$	366	$	578	$	678
Restricted stock		191		282		291		282
Total share-based compensation expense	$	455	$	648	$	869	$	960

For the six months ended June 30, 2011 and 2010, cash received from stock option exercises was $7,000 and $41,000, respectively. Due to our net operating loss tax position, we did not recognize a tax benefit from options exercised under the share-based payment arrangements. The amounts presented in the table above are included as non-cash compensation in our cash flow from operating activities.

Stock Options

For the three months ended June 30, 2011, we did not grant any stock options to officers or employees; however, we did grant 35,000 stock options to non-employee directors of the Company. The valuation methodology used to determine the fair value of the options issued during the year was the Black-Scholes-Merton option-pricing model. The Black-Scholes-Merton model requires the use of exercise behavior data and the use of a number of assumptions, including volatility of the stock price, the weighted average risk-free interest rate and the weighted average expected life of the options. We do not pay dividends on our common stock; therefore, the dividend rate variable in the Black-Scholes-Merton model is zero.

Restricted Stock

For the three months ended June 30, 2011, we awarded 66,500 shares of time-based restricted stock to our non-employee directors and 25,000 shares of time-based restricted stock to certain officers, both grants pursuant to our 2003 Stock Option Incentive Plan. The shares awarded to our non-employee directors vested 50% at the date of grant and will vest 50% on the one year anniversary of the date of grant. The shares awarded to certain officers will vest 50% in April 2012 and 50% in April 2013. The fair value of the restricted stock is equal to the fair market value, as defined by the terms of the 2003 Plan, on the date of grant and is amortized ratably over the vesting period. In the second quarter of 2011, we did not issue any performance-based restricted stock.