STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2012

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

NOTE 12-STOCK-BASED COMPENSATION

Services performed and other transactions settled in the company's common stock are recorded at the estimated fair value of the stock issued if that value is more readily determinable, than the fair value of the consideration received.

We have stock compensation plans for employees and directors. We recognize the stock-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. All of our stock-based compensation is accounted for as an equity instrument.

-	Number of Shares	Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding December 31, 2011	29,578	$0.50	6.0	--
Options granted under the plan	--	--	--	--
Options exercised	--	--	--	--
Options forfeited and expired	(4,013)	--	--	--
Outstanding September 30, 2012	25,565	$0.44	5.2	--

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of our stock exceeded the exercise price of the options at September 30, 2012 for those options for which the quoted market price was in excess of the exercise price ("in-the-money­ options"). There were no options in the money at September 30, 2012.

As of September 30, 2012, total compensation cost of unvested employee stock options is $1.8 million. This cost is expected to be recognized through September 30, 2016. We recorded no income tax benefits for stock-based compensation expense arrangements for the three and nine months ended September 30, 2012, as we have cumulative operating losses, for which a valuation allowance has been established