Stock-Based Compensation

6 Months Ended

Jun. 30, 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 June 30, 2012 and 2011 was $86,000 and $108,000, respectively. Stock-based compensation expense included in selling, general and administrative expense for the six-month periods ended June 30, 2012 and 2011 was $183,000 and $202,000, respectively. At June 30, 2012, a total of 95,500 shares were available for grant under these plans.

A summary of the option activity for the first six 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		24,000			6.22		3.8		—
Exercised		(45,000	)		1.94		—		187,220
Forfeited or expired		(51,000	)		10.43		—		—
Options outstanding at June 30, 2012		463,333		$	10.04		4.0	$	25,383
Options exercisable at June 30, 2012		287,333		$	10.44		2.4	$	25,383

The total intrinsic value of options exercised was $176,700 and $39,200 during the three-month periods ended June 30, 2012 and 2011, respectively. The total intrinsic value of options exercised was $187,220 and $46,400 during the six-month periods ended June 30, 2012 and 2011, respectively. As of June 30, 2012, there was $509,000 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 2.4 years.