Note 10 - Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

(10) STOCK-BASED COMPENSATION

As of September 30, 2011, we have outstanding stock options and unvested restricted stock awards granted under stock-based employee compensation plans that are described more fully in Note 15 to the consolidated financial statements in our 2010 Form 10-K.

As of September 30, 2011, total compensation expense to be recognized in future periods was $259. The weighted average period over which this expense is expected to be recognized is 2.4 years. All of this expense is related to nonvested shares of restricted stock.

Restricted Stock Awards

We record compensation expense for restricted stock awards (nonvested shares) based on the quoted market price of our stock at the grant date and amortize the expense over the vesting period. Restricted stock awards generally vest over four years. The following table shows the allocation of the compensation expense we recorded during the three months and nine months ended September 30, 2011 and 2010, respectively, related to nonvested shares:

	Three Months Ended  Sept. 30,				Nine Months Ended  Sept. 30,
	2011		2010		2011		2010
Cost of revenues	$	3	$	3	$	9	$	8
Selling expense		3		5		13		13
Engineering and product development expense		8		13		34		29
General and administrative expense		18		49		63		116
	$	32	$	70	$	119	$	166

There was no compensation expense capitalized in the nine months ended September 30, 2011 or 2010.

The following table summarizes the activity related to nonvested shares for the nine months ended September 30, 2011:

	Number of Shares			Weighted Average Grant Date Fair Value
Nonvested shares outstanding, January 1, 2011		303,250		$	1.89
Granted		-			-
Vested		(97,000	)		2.45
Forfeited		(11,250	)		1.73
Nonvested shares outstanding, September 30, 2011		195,000			1.62

Stock Options

The following table summarizes the stock option activity for the nine months ended September 30, 2011:

	Number of Shares			Weighted Average Exercise Price
Options outstanding, January 1, 2011 (337,000 exercisable)		337,000		$	3.26
Granted		-			-
Exercised		(10,000	)		3.04
Forfeited/Expired		-			-
Options outstanding, September 30, 2011 (327,000 exercisable)		327,000			3.26