Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

Note 6: Stock-Based Compensation

Incremental stock-based compensation expense recognized was $7,948 during the first six months of 2011 and $9,527 for the same period in 2010. As of June 30, 2011, there was unrecognized compensation expense of $6,580 related to stock options.

Stock option compensation expense is the estimated fair value of options granted using the Black-Scholes Model amortized on a straight-line basis over the vesting period of the award. There were 40,600 options granted and no options exercised during the six month period ended June 30, 2011.

The weighted average fair value of incentive stock options granted during the first six months of 2011 and 2010 was $0.60 and $0.55, respectively. The weighted average fair value of non-employee director's stock options granted during the first six months of 2011 and 2010 was $0.55 and $.59, respectively.

Stock option plan activity for the six months ended June 30, 2011, is summarized below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (1)
Options outstanding, January 1		210,819		$	11.35		5.6
Granted		40,600			4.81
Forfeited		(25,686	)		6.41
Exercised		—			—
Expired		(19,345	)		15.61
Options outstanding, June 30		206,388			10.28		6.1	$	—
Options exercisable, June 30		171,788			11.37		5.4	$	—

(1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2011. This amount changes based on changes in the market value of the Company's stock.