Restricted Stock, Stock Options And Other Stock Plans

12 Months Ended

Dec. 31, 2011

Restricted Stock, Stock Options And Other Stock Plans [Abstract]

Restricted Stock, Stock Options And Other Stock Plans

14. RESTRICTED STOCK, STOCK OPTIONS AND OTHER STOCK PLANS

Effective January 1, 2004, the Company adopted the fair value recognition provisions required in accounting for share based payments. Prior to December 14, 2004, the Company did not sponsor any stock based plans.

On December 14, 2004 the Company adopted the 2004 Long-Term Compensation Plan ("The Plan"). The Plan provides for the issuance of stock options, stock appreciation rights, or SARs, restricted stock, deferred stock, dividend equivalents, bonus stock and awards in lieu of cash compensation, other stock-based awards and performance awards. Any shares issued under the Plan typically vest over service periods that range from one to five years. Stock options issued under the plan expire 10 years from the date they are granted.

The Plan provided an initial authorization of 2,550 shares of Class A common stock for issuance and allows an automatic annual increase equal to the lesser of (i) 3% of the Class A common stock outstanding (ii) 750 shares or (iii) such lesser amount as may be determined by the Company's Board of Directors. As of December 31, 2011, there were 0.7 million shares available for issuance under the Plan.

The fair value of each option award is calculated on the date of grant using the Black-Scholes option pricing model and certain subjective assumptions. Because the Company does not have sufficient trading history, expected volatilities are based on historical volatilities of comparable companies within our industry. We estimate forfeitures using a weighted average historical forfeiture rate. Our estimates of forfeitures will be adjusted over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from their estimate. The risk-free rate for the periods is based on the U.S. Treasury rates in effect at the time of grant. The expected term of options is based on the simplified method which assumes that the option will be exercised midway between the vesting date and the contractual term of the option. The Company is able to use the simplified method as the options qualify as "plain vanilla" options as defined by ASC 718 – Stock Compensation. The following table summarizes the assumptions used to calculate the fair value of options during 2011 and 2010.

	2011			2010
Weighted average fair value of options granted	$	0.99		$	1.41
Dividend yields		0			0
Expected volatility		107.3%-164.5	%		107.3%-164.5	%
Weighted average expected volatility		137.00	%		136.00	%
Risk free interest rates		0.96	%		1.46	%
Weighted average expected term (in years)		6.25			5

The following table summarizes information about stock option activity:

	Shares			Weighted average exercise price
Outstanding at December 31, 2009		748		$	0.81
Granted		100			1.69
Exercised		(133	)		0.71
Forfeited or expired		(53	)		1.00
Outstanding at December 31, 2010		663		$	0.94
Granted		100			1.08
Exercised		0			0.00
Forfeited or expired		0			0.00
Outstanding at December 31, 2011		763			0.96
Exercisable at December 31, 2011		663		$	0.94

As of December 31, 2011 and 2010, the weighted-average remaining contractual term of unexercised stock options was 7.8 years and 8.4 years, respectively.

A summary of the Company's restricted share activity is presented below:

	Shares			Weighted average fair value at date of grant
Restricted shares outstanding at December 31, 2009		—		$	—
Granted		361			0.88
Vested		(267	)		(0.75	)
Forfeited		—			—
Restricted shares outstanding at December 31, 2010		94		$	1.24
Granted		1,471			1.31
Vested		(602	)		1.30
Forfeited		0			0
Restricted shares outstanding at December 31, 2011		963		$	1.31

As of December 31, 2011, there was $991 unrecognized compensation cost related to restricted stock issuances granted under the Plan. The Company intends to issue new shares of its common stock upon vesting of restricted stock grants or the exercise of stock options.