Note 7 - Stock-Based Compensation

3 Months Ended

Mar. 31, 2014

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

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

(7)   STOCK-BASED COMPENSATION

As of March 31, 2014, we had outstanding stock options and unvested restricted stock awards granted under stock-based employee compensation plans that are described more fully in Note 14 to the consolidated financial statements in our 2013 Form 10-K.

In addition, on March 4, 2014, our Board of Directors approved the inTEST Corporation 2014 Stock Plan (the "2014 Stock Plan"). The 2014 Stock Plan is included in our 2014 proxy statement for approval by our stockholders. If approved by our stockholders, the 2014 Stock Plan will permit the granting of stock options, restricted stock, stock appreciation rights or restricted stock units for up to 500,000 shares of our common stock to directors, officers, other key employees and consultants.

As of March 31, 2014, total compensation expense to be recognized in future periods was $378. The weighted average period over which this expense is expected to be recognized is 3.3 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 ended March 31, 2014 and 2013, respectively, related to nonvested shares:

	Three Months Ended March 31,
	2014		2013
Cost of revenues	$	3	$	1
Selling expense		3		2
Engineering and product development expense		6		6
General and administrative expense		29		18
	$	41	$	27

There was no compensation expense capitalized in the three months ended March 31, 2014 or 2013.

The following table summarizes the activity related to nonvested shares for the three months ended March 31, 2014:

	Number of Shares			Weighted Average Grant Date Fair Value
Nonvested shares outstanding, January 1, 2014		180,000		$	2.69
Granted		-			-
Vested		(55,000	)		1.56
Forfeited		(5,000	)		3.97
Nonvested shares outstanding, March 31, 2014		120,000			3.28

Stock Options

The following table summarizes the stock option activity for the three months ended March 31, 2014:

	Number of Shares		Weighted Average Exercise Price
Options outstanding, January 1, 2014 (10,000 exercisable)		10,000	$	5.66
Granted		-		-
Exercised		-		-
Forfeited/Expired		-		-
Options outstanding, March 31, 2014 (10,000 exercisable)		10,000		5.66