STOCK-BASED EMPLOYEE COMPENSATION

9 Months Ended

Sep. 30, 2012

STOCK-BASED EMPLOYEE COMPENSATION [Abstract]

STOCK-BASED EMPLOYEE COMPENSATION

3. STOCK-BASED EMPLOYEE COMPENSATION

The Company has stock-based compensation plans for employees and non-employee members of the Company's Board of Directors. The plans provide for discretionary grants of stock options, shares of restricted stock, and other stock-based awards. The plans are administered by the Compensation Committee of the Company's Board of Directors, consisting of non-employee directors. The Company's recognition of stock-based compensation expense in the statement of operations over the vesting period is based on the fair value of the award at the grant date.

Restricted Stock Awards

The Company granted restricted stock awards of approximately 378,000 shares on May 22, 2009 under its 2008 long-term incentive compensation plan ("LTICP"). The restricted stock awards were granted to certain employees, including officers and members of the Company's Board of Directors, at a grant price of $1.46 (the average of the high and low stock price from the previous day of trading). The restricted stock awards vest annually over a period of three years from the date of grant, with accelerated vesting upon a change of control of the Company (as defined in the applicable plan). During the restriction period, award holders do not have the rights of stockholders and cannot transfer ownership. Additionally, nonvested shares of award holders are subject to forfeiture. These awards are forfeited and revert to the Company in the event of employment termination, except in the case of death, disability, retirement or other specified events.

A summary of restricted stock award activity under the Company's LTICPs as of September 30, 2012 and changes during the nine months then ended is presented as follows:

	Number of Shares (in thousands)		Weighted- Average Grant Date Fair Value
Outstanding at January 1, 2012		61	$	1.46
Granted		—		—
Vested		61		1.46
Forfeited		—		—
Outstanding at September 30, 2012		—	$	—

The Company recognized approximately $0 and $35 of compensation costs related to the LTICPs during the three and nine months ended September 30, 2012, respectively and $22 and $137 of compensation costs related to the LTICPs during the three and nine months ended September 30, 2011, respectively. Additionally, as of September 30, 2012, there was no unrecognized compensation cost related to restricted stock awards granted under the Company's 2008 LTICPs.

Availability for Future Issuance – As of September 30, 2012, (i) options to purchase approximately 1,501,000 shares of the Company's common stock were available for future issuance under the Company's stock option plans and (ii) options to purchase a maximum of approximately 808,000 shares of the Company's common stock were available for future issuance under the Company's LTICPs, reduced by four shares for each share of restricted stock awarded under the 2006 and 2005 LTICPs, under which an aggregate of approximately 210,000 shares of the 808,000 total shares were available for issuance as options, and reduced by two shares for each share of restricted stock awarded under the 2008 and 2007 LTICPs, under which an aggregate of approximately 598,000 of the 808,000 total shares were available for issuance as options.