NOTE 10 - SHARE-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2014

Note 10 - Share-Based Compensation Tables

Impact on operations of recording share-based compensation

he 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

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

Fair value of share-based awards for employee stock options

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

Unvested options grants and restricted stock awards

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