Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

NOTE 8 – STOCK-BASED COMPENSATION

We currently have stock-based compensation plans in place for our directors, officers, employees, consultants and advisors. Under the terms of these plans we may grant restricted shares and stock options for the purchase of our common stock. The stock-based compensation is granted under terms determined by our Compensation Committee. Our standard stock option grants have a maximum term of ten years, generally vest over periods ranging between one and four years, and are granted with an exercise price equal to the fair market value of the common stock on the date the options are granted. Restricted stock is valued at the market value of the common stock on the date of grant and generally vests between two and seven years. All dividends paid on restricted stock, whether vested or unvested, are granted to the shareholder.

Information regarding our stock option plans as of June 30, 2012, was as follows:

				Weighted	Weighted
	Number of			Average Exercise	Average	Aggregate
	Shares			Price per Share	Contractual Term	Intrinsic Value
Outstanding, beginning of year	111,034		$	12.25
Options expired	(4,389	)		8.90
Options forfeited	(23,274	)		11.97
Outstanding, end of quarter	83,371		$	12.51	1.59	$	-
Exercisable, end of quarter	83,371		$	12.51	1.59	$	-

During the first six months of 2012 and 2011, we expensed $73 thousand and $46 thousand, respectively, in stock-based compensation under restricted stock awards. The summary of changes in unvested restricted stock awards for the three months ended June 30, 2012, is as follows:

			Weighted
			Average
	Number of		Grant Date
	Shares		Fair Value
Unvested restricted stock, beginning of year	115,729		$	4.86
Granted	36,496			4.98
Forfeited	(982	)		5.19
Vested	(17,153	)		6.04
Unvested restricted stock, end of period	134,090		$	4.74

At June 30, 2012, unrecognized compensation expense for non-vested restricted stock was $560 thousand, which is expected to be recognized over an average period of 3.6 years.