Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note G: Stock-Based Compensation

We compensate officers, directors and key employees with stock-based compensation under two stock plans approved by our shareholders and administered under the supervision of our Board of Directors. Stock option awards are granted at exercise prices equal to the closing price of our stock the day before the date of grant. Generally, options vest proportionally over periods of three to five years from the dates of the grant, beginning one year from the date of grant, and have a contractual term of six to ten years. Compensation expense, net of estimated forfeitures, is recognized ratably over the vesting period. Stock-based compensation expense included in selling, general and administrative expense for the three-month periods ended March 31, 2012 and 2011 was $97,000 and $94,000, respectively. At March 31, 2012, a total of 64,500 shares were available for grant under these plans.

A summary of the option activity for the first three months of 2012 is as follows:

	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Options outstanding at December 31, 2011		535,333		$	9.58		4.1	$	250,416
Granted		12,000		$	6.31		3.9	$	5,280
Exercised		(2,000	)	$	1.40		—	$	10,547
Forfeited or expired		(8,000	)	$	8.00		—	$	10,000
Options outstanding at March 31, 2012		537,333		$	9.57		3.9	$	260,372
Options exercisable at March 31, 2012		247,333		$	8.87		2.4	$	253,132

The total intrinsic value of options exercised was $10,500 and $21,000 during the three-month periods ended March 31, 2012 and 2011, respectively. As of March 31, 2012, there was $610,000 of total unrecognized compensation cost related to non-vested stock options. The weighted average period over which the compensation cost is expected to be recognized is 2.1 years