STOCK-BASED EMPLOYEE COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2014

STOCK-BASED EMPLOYEE COMPENSATION [Abstract]

Assumptions used in estimating fair values of options granted

The fair values of options granted were estimated on the date of grant using the Black-Scholes Merton option pricing model based on the assumptions included in the table below. The fair value of the Company’s stock option awards is charged to expense over the vesting life of the underlying stock options using the straight line method. Expected volatility is based on the historical volatility of the Company’s common stock. The risk-free interest rate for periods within the contractual life of the stock option award is based on the yield of U.S. Treasury bonds on the grant date with a maturity equal to the expected term of the stock option. The expected life of stock option awards granted to employees and non-employee directors is based upon the “simplified” method for “plain vanilla” options described in SEC Staff Accounting Bulletin No. 107, as amended by SEC Staff Accounting Bulletin No. 110. Forfeiture rates are based on management’s estimates.

	Six months ended June 30, 2014			Six months ended June 30, 2013
Expected volatility		79	%		84	%
Expected dividend yield		0.00	%		0.00	%
Weighted average risk-free interest rate		1.81	%		1.00	%
Expected life	5.50 years			5.50 years
Forfeiture rate		0	%		0	%

Summary of activity under stock option plans

As of June 30, 2014, the Company has approximately $506 of unrecognized stock compensation expense which will be recognized over a period of approximately two years.

	Shares (In thousands)			Weighted Average Exercise Price			Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2013		905		$	0.28
Grants		865			1.44
Exercised		(23	)		(0.34	)
Forfeited, cancelled or expired		—			—
Outstanding at June 30, 2014		1,747		$	0.85			9	$	1,003
Exercisable at June 30, 2014		854		$	0.66			9	$	647