Common Stock and Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Share-based Compensation [Abstract]

Common Stock and Stock-Based Compensation

6. Common Stock and Stock-Based Compensation

The Company's 2006 Stock Incentive Plan, as amended and restated (the “2006 Plan”), authorizes the Company to issue up to 3,000,000 shares of Common Stock to employees, non-employee directors and consultants pursuant to awards of stock options, stock appreciation rights, restricted stock, in payment of performance shares or other stock-based awards. An amendment to the 2006 Plan toincrease the aggregate number of shares issuable under the plan by 500,000 shares to 3,000,000 shares was unanimously adopted by the Board of Directors on March 1, 2011, and approved by stockholders at the Annual Meeting of Stockholders on May 12, 2011. Under the 2006 Plan, stock options must be granted at a price not less than the fair market value of the stock on the date the option is granted, generally are not subject to re-pricing, and will not be exercisable more than ten years after the date of grant. Options granted under the 2006 Plan generally qualify as “non-qualified stock options” under the U.S. Internal Revenue Code of 1986, as amended. Certain options granted under the Company's 2004 Common Stock Option Plan, as amended (the “2004 Plan”), generally qualify as “incentive stock options” under the U.S. Internal Revenue Code; the exercise price of a stock option granted under this plan may not be less than the fair market value of Common Stock on the option grant date.

At June 30,2011, the Company had 103,320stock options outstanding under the 2004 Plan and 2,029,199 shares of restricted stock and stock options outstanding under the 2006 Plan.

Option Grants

Options granted during the six months endedJune 30,2011 to employees of the Company and members of the Company's Board of Directors were as follows:

Date	Number of Options	Exercise Price		Black-Scholes Valuation		Volatility		Dividend Yield		Risk Free Interest Rate		Expected Term (Years)
February 1, 2011	7,500	$	4.18	$	2.74	79.17	%	0.00	%	2.6	%	6.25

The total compensation expense, classified within Payroll and related on the condensed consolidated statements of operations, related to options outstanding was $262 and $526for the three and sixmonths ended June 30,2011, respectively,and $347and $694for the three and sixmonths ended June 30,2010, respectively.

As of June 30,2011, a total of $1,258 in unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.7 years.

Restricted Stock Awards

On March 1, 2011, the Company issued 64,000 shares of restricted stock to employees. The fair value per share was $4.57, the closing stock price on the date of grant. These shares will vest 25% per year over four years on the anniversary date of the grant and expire on March 1, 2021. There was no restricted stock awarded during thethree months ended June 30, 2010.

The total compensation expense, classified within Payroll and related on the condensed consolidated statements of operations, related to restricted stock granted was $22and $36for the three and six months ended June 30, 2011, respectively,and $9and $18 for the three and six months ended June 30, 2010.

As of June 30,2011, a total of $247 in unrecognized compensation expense related to restricted stock awards is expected to be recognized over a weighted-average period of 3.6 years.

Stock Grants

       In the six months endedJune 30,2011, the Company issued shares of common stock to members of the Company's Board of Directors as payment of their annual and quarterly retention. The total fair value of the shares issued was expensed upon the grant dates. Total shares issued were:

Date	Number of Shares	Price Per Share		Grant Date Fair Value
January 19, 2011	10,835	$	4.16	$	45
March 25, 2011	5,342	$	4.68	$	25
June 24, 2011	3,714	$	7.00	$	26
Total	19,891