NOTE 10 - SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2014

Share-based Compensation [Abstract]

NOTE 10 - SHARE-BASED COMPENSATION

NOTE 10 – SHARE-BASED COMPENSATION

For share-based awards granted, we have recognized compensation expense based on the estimated grant date fair value method.  For these awards we have recognized compensation expense using a straight-line amortization method reduced for estimated forfeitures.  

The impact on our results of operations of recording share-based compensation, net of forfeitures, for the three months ended March 31, 2014 and 2013, respectively, was as follows:

	Three Months Ended
	Mar. 31, 2014	Mar. 31, 2013
(in thousands)
Cost of goods sold	($4)	$11
Research and development	14	20
Selling, general and administrative	75	39
Total share-based compensation	$85	$70
Impact on net earnings per share:
Basic and diluted	($0.01)	($0.01)

Stock option grants during the three months ended March 31, 2014 and 2013 were as follows:

	Three Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Stock Options Granted	-	30,000

The fair value of share-based awards for employee stock options was estimated using the Black-Scholes valuation model.  The following weighted average assumptions were used to calculate the fair value of stock options granted during the three months ended March 31, 2014 and 2013:

	Three Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Risk-free interest rates	-	0.68%
Volatility factors	-	0.54
Expected life of the option in years	-	4.00
Expected dividend yield	-	None

The remaining unamortized expected future compensation expense and remaining amortization period associated with unvested option grants and restricted stock awards at March 31, 2014 are:

	Mar. 31, 2014
Unamortized future compensation expense	$764,623
Remaining weighted average amortization period in years	2.51