Stock Based Compensation

9 Months Ended

Sep. 30, 2013

Stock Based Compensation [Abstract]

Stock Based Compensation

Note 5 — Stock Based Compensation

The Company applies the fair value recognition provisions of ASC Topic 718 Stock-Based Compensation.  The Company recorded stock based compensation expense of $197,000 for the three months ended September 30, 2013 and a net benefit of $85,000 for the nine months ended.  The amount recorded for the nine months ended September 30, 2013 was recorded net of benefits of $384,000, as the result of forfeitures of unvested stock awards prior to the completion of the requisite service period. Total stock-based compensation expense included within operating expenses for the three and nine months ended September 30, 2012 was $135,000 and $534,000, respectively.  At September 30, 2013, the unrecognized compensation expense related to non-vested equity awards was $730,000 (net of estimated forfeitures), which is expected to be recognized as compensation expense in fiscal years 2013 through 2017.

During 2013, the Company has granted a total of 291,000 equity awards as approved by the Company’s Compensation Committee of its Board of Directors to various employees of the Company under the 2005 Equity Incentive Plan.  All of the awards granted are time vested over specific service periods as defined in the agreements.

During 2012, the Company’s issued approximately 183,000 restricted stock awards to various employees at a per share price of $0.02.  The awards were approved by the Compensation Committee of its Board of Directors under the 2005 Equity Incentive Plan.  Included in the shares granted are 121,000 performance based restricted stock which vest upon the achievement of financial goals from fiscal years 2012 through 2014.  These grant agreements expire if the related performance conditions are not met by December 31, 2014.  The Company has not recognized any compensation expense associated with these performance based awards as the achievement of the performance target was not deemed probable during the current period.