Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

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, 2013 and 2012 was $55,000 and $97,000, respectively. At March 31, 2013, a total of 208,250 shares were available for grant under these plans.

Stock Options

A summary of the option activity for the first three months of 2013 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, 2012		398,893		$	7.95		5.6	$	13,080
Granted		—		$	—		—	$	—
Exercised		—		$	—		—	$	—
Forfeited or expired		(59,310	)	$	10.14		—	$	—
Options outstanding at March 31, 2013		339,583		$	7.57		5.6	$	2,240
Options exercisable at March 31, 2013		125,083		$	9.80		3.2	$	2,240

There were no options exercised in the three-month period ended March 31, 2013. The total intrinsic value of options exercised was $10,500 during the three-month period ended March 31, 2012. As of March 31, 2013, there was $362,000 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 2.9 years

Stock Awards

We issue stock awards as a portion of the annual retainer for each director on a quarterly basis. The stock awards are fully vested at the time of issuance. Compensation expense related to stock awards is determined on the grant-date based on the publicly quoted fair market value of our common stock and is charged to earnings on the grant-date. During the quarter ended March 31, 2013, there were 3,543 stock awards issued with a weighted-average grant date fair value of $5.29.