SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

6 Months Ended

Jun. 30, 2012

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

11.  SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

On May 9, 2012, the Company issued stock awards covering 117,000 shares of common stock under its 2011 Omnibus Equity Compensation Plan. The Company recognized compensation expense based upon the average of the high and low trading price of its common stock on the issuance date.

On May 17, 2012, stock options with respect to 139,300 shares were exercised. Following the surrender of 68,073 shares in connection with a net exercise feature of the stock options, the Company issued an aggregate of 64,727 shares.

Non cash stock based compensation recognized during the three months ended June 30, 2012 and 2011 attributable to stock awards totaled approximately $223,000 and $321,000, respectively.  There was no stock compensation expense related to stockawards during the three months ended March 31, 2012 and 2011.  Non cash stock compensation expense attributable to stock options was $15,000 and $22,000 for the three months ended June 30, 2012 and 2011, respectively.  Non cash stock compensation expense attributable to stock options was $34,000 and $45,000 for the six months ended June 30, 2012 and 2011, respectively.

At June 30, 2012, there was approximately $33,000 of unrecognized compensation expense related tostockoptions awarded to employees.  This cost will be charged as compensation expense through 2013, as the stock options vest.

The following table provides information at June 30, 2012 regarding outstandingstock options under the Company’s stock option plans as well as a grant made outside of the Company’s stock option plans. As used in the table below, “2007 ISO” refers to the Company’s 2007 Incentive Stock Option Plan, “2008 ISO” refers to the Company’s 2008 Incentive Stock Option Plan, “2002 NQ” refers to the Company’s 2002 Non-Qualified Stock Option Plan and “2008 NQ” refers to the Company’s 2008 Non-Qualified Stock Option Plan.

Plan	Date Granted	Options Outstanding		Exercisable Options	Exercise Price		Expiration Date	Weighted Average Remaining Life
Non Plan	3/25/09		115,000	115,000	$	0.55	3/24/14	1.8
2007 ISO	10/08/07		2,500	2,000		1.87	10/07/12	0.3
2007 ISO	12/17/07		141,000	109,700		1.32	12/16/12	0.5
2008 ISO	8/25/08		142,900	80,300		0.97	8/24/13	1.2
2002NQ	10/22/02		30,000	30,000		1.26	10/21/12	0.3
2002NQ	6/20/03		30,000	30,000		1.03	6/19/13	1.0
2002NQ	5/25/04		30,000	30,000		1.46	5/24/14	1.9
2002NQ	4/03/06		40,000	40,000		1.08	4/02/16	3.8
2002NQ	12/17/07		50,000	50,000		1.32	12/16/17	5.5
2008NQ	1/11/09		50,000	50,000		0.69	1/10/19	6.6
2008NQ	4/26/10		25,000	25,000		2.07	4/25/20	7.9
			656,400	562,000	$	1.07		2.3