STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2012

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

NOTE 5: STOCK-BASED COMPENSATION

The Company currently has one active stock-based compensation plan, which was approved by shareholders. The Company grants stock options to employees, consultants, and board members at the fair market value of its common stock, on the date of grant, with a term no greater than ten years. The majority of stock options vest over two or three years. Shareholders who own 10% or more of the Company's outstanding stock are granted incentive stock options at an exercise price that may not be less than 110% of the fair market value of the Company's common stock on the date of grant and have a term no greater than five years.

In February 2008, the Company's Board of Directors approved the Mannatech, Incorporated 2008 Stock Incentive Plan, as amended (the "2008 Plan"), which reserves up to 100,000 shares, as adjusted for the 1-for-10 reverse stock split, for issuance of stock options and restricted stock to our employees, board members, and consultants, plus any shares reserved under the Company's then-existing, unexpired stock plans for which options had not yet been issued, and any shares underlying outstanding options under the then-existing stock option plans that terminate without having been exercised in full. The 2008 Plan was approved by the Company's shareholders at the 2008 Annual Shareholders' Meeting. As of March 31, 2012, the 2008 Plan had 40,240 stock options available for grant before the plan expires on February 20, 2018.

The Company records stock-based compensation expense related to granting stock options in selling and administrative expenses. During the three months ended March 31, 2012 the Company granted 5,000 stock options and did not grant any stock options during the three months ended March 31, 2011. The fair value of stock options granted during the three months ended March 31, 2012 was $2.64.  The Company recognized compensation expense as follows for the three months ended March 31 (in thousands):

	Three months
	2012		2011
Total gross compensation expense	$	50	$	97
Total tax benefit associated with compensation expense		11		17
Total net compensation expense	$	39	$	80

As of March 31, 2012, the Company expects to record compensation expense in the future as follows (in thousands):

	Nine months ending December 31, 2012		Year ending December 31,
			2013		2014
Total gross unrecognized compensation expense	$	139	$	77	$	10
Tax benefit associated with unrecognized compensation expense		23		11		-
Total net unrecognized compensation expense	$	116	$	66	$	10