NOTE 10 - SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 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 and nine months ended September  30, 2014 and 2013, respectively, was as follows:

	Three Months Ended		Nine Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
(in thousands)
Cost of goods sold	$2	$11	$4	$35
Research and development	20	15	60	63
Selling, general and administrative	68	76	237	210
Total share-based compensation	$90	$102	$301	$308
Impact on net earnings per share:
Basic and diluted	($0.01)	($0.01)	($0.04)	($0.04)

Equity awards during the three and nine months ended September 30, 2014 and 2013 were as follows:

	Three Months Ended		Nine Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Restricted Stock	-	-	188,900	180,400
Stock Options	-	100,000	3,000	133,000

Non-employee directors Restricted Stock Units (“RSU’s”) vest over one year, employee RSU’s vest over four years with the expense being recognized over the vesting period.

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 and nine months ended September 30, 2014 and 2013:

	Three Months Ended		Nine Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Risk-free interest rates	-	1.01%	1.31%	0.92%
Volatility factors	-	0.54	0.51	0.54
Expected life of the option in years	-	4.00	4.00	4.00
Expected dividend yield	-	None	None	None

The remaining unamortized expected future equity compensation expense and remaining amortization period associated with unvested option grants, restricted stock awards and restricted stock unit awards at September 30, 2014 are:

	Sep. 30, 2014
Unamortized future equity compensation expense	$994,487
Remaining weighted average amortization period in years	2.77