STOCK OPTION PLAN (Tables)

12 Months Ended

Dec. 31, 2013

A summary of changes in stock options outstanding during the year ended December 31, 2013, is as follows:

	2013
	Numberof Options (in thousands)			Weighted average exercise price		Weighted average remaining contractual life (in years)		Aggregate intrinsic value (in thousands)
Outstanding at beginning of year		123		$	19.76
Granted		83		$	6.35
Exercised		(10	)	$	11.89
Forfeited or expired		(8	)	$	19.40
Outstanding at end of year		188		$	14.29		7.6		501
Options exercisable at year end		99		$	21.36		6.3		—

Assumptions used to calculate compensation expense and fair value of stock options granted

The Company uses the Black-Scholes option-pricing model to calculate the fair value of all of its stock options and its assumptions are based on historical information. The following assumptions were used to calculate the compensation expense and the calculated fair value of stock options granted each year:

	2013			2012
Dividend yield:		—	⁽¹⁾		—	⁽¹⁾
Risk-free interest rate:		0.66 - 1.36	%		0.62 - 0.75	%
Expected market price volatility:		80.3 – 82.3	%		78.4 - 81.6	%
Average expected life of stock options:	4.5 years			4.5 years

⁽¹⁾	The Company declared no dividends in 2013 or 2012.

Share-based compensation expense

The Company recorded the following amounts related to the expense of the fair values of options during the years ended December 31, 2013 and 2012 (in thousands):

	2013			2012
Selling, general and administrative expenses and income (loss) from operations before income taxes	$	173		$	209
Benefit for income taxes		(33	)		(44	)
Effect on net income / (loss)	$	140		$	165

Unrecognized compensation cost

As of December 31, 2013, the Company had approximately $0.2 million of total unrecognized compensation expense related to stock options currently outstanding, to be recognized in future years, ending December 31,

as follows (in thousands):

	Total gross unrecognized compensation expense		Total tax benefit associated with unrecognized compensation expense		Total net unrecognized compensation expense
2014	$	118	$	19	$	99
2015		99		15		84
2016		21		2		19
	$	238	$	36	$	202