Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 6: Stock-Based Compensation

Incremental stock-based compensation expense recognized was $2,925 during the first nine months of 2012 and $10,141 for the same period in 2011. There was no unrecognized compensation expense related to stock options as of September 30, 2012. On October 6, 2011, 5,000 shares of the Company’s common stock were granted to the new Chief Executive Officer pursuant to the terms of his employment agreement with the Company. These shares vested immediately and $16,000 in stock compensation expense was posted on that date.

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 no options granted and no options exercised during the nine month period ended September 30, 2012.

Stock option plan activity for the nine months ended September 30, 2012, is summarized below:

	Shares			Weighted  Average Exercise Price		Remaining Contractual Life (in years)		Aggregate Intrinsic Value (1)
Options outstanding, January 1		197,423		$	10.00		5.8
Granted		—			—
Forfeited		(59,341	)		9.46
Exercised		—			—
Expired		(17,222	)		15.34
Options outstanding, September 30		120,860			9.50		5.6	$	13,670
Options exercisable, September 30		120,860			9.50		5.6	$	13,670

(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 September 30, 2012. This amount changes based on changes in the market value of the Company’s common stock.