EQUITY COMPENSATION PLANS

3 Months Ended

Mar. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Note 8. EQUITY COMPENSATION PLANS

 In March 2003, the Company’s shareholders approved its 2003 Stock Option and Incentive Plan (the “2003 Plan”). Pursuant to the 2003 Plan, the Company’s Board of Directors (or its committees and/or executive officers delegated by the Board of Directors) may grant incentive and nonqualified stock options, restricted stock, and other stock-based awards to the Company’s employees, officers, directors, consultants and advisors. As of March 31, 2013, the maximum aggregate number of shares that is authorized for issuance under the 2003 Plan for all periods is 1,600,000 shares. As of March 31, 2013, there were 311,250 restricted shares of Common Stock issued and options to purchase an aggregate of 821,250 shares of Common Stock outstanding under the 2003 Plan and 422,750 shares available for future grants.

 In May 2008, the Company’s shareholders approved the 2008 Equity Compensation Plan (the “2008 Plan”). The 2008 Plan provides for grants of incentive stock options to employees and nonqualified stock options and restricted stock to employees, consultants and non-employee directors of the Company. In July 2010, the Company’s shareholders approved an amendment to the 2008 Plan to increase the maximum number of shares of Common Stock available under the Plan by 2,000,000 shares to 4,700,000 shares.  In June 2012, the Company’s shareholders approved an amendment to the 2008 Plan to increase the maximum number of shares available under the Plan by 5,300,000 shares to 10,000,000 shares.

The following tables show the remaining shares available for future grant and outstanding shares: 

	Equity Compensation Plans
	2003 Plan			2008 Plan
Shares Available For Issuance
Total reserved for stock options and restricted stock		1,600,000			10,000,000
Net restricted stock issued net of cancellations		(311,250	)		(2,687,281	)
Stock options granted		(1,544,491	)		(2,660,000	)
Add back options cancelled before exercise		678,491			720,000
Options cancelled by plan vote		—			—
Remaining shares available for future grants		422,750			5,372,719
							Not Pursuant to a Plan
Total granted		1,544,491			2,660,000			3,100,000
Less:  Options cancelled		(678,491	)		(720,000	)		(1,383,334	)
Options exercised		(356,000	)		(130,000	)		(666,666	)
Net shares outstanding before restricted stock		510,000			1,810,000			1,050,000
Net restricted stock issued net of cancellations		311,250			2,687,281			284,844
Outstanding shares at March 31, 2013		821,250			4,497,281			1,334,844