Stock Based Compensation

6 Months Ended

Jun. 30, 2012

Stock Based Compensation [Abstract]

Stock Based Compensation

(Note 3) - Stock Based Compensation:

At June 30, 2012, the Company has two stock-based employee compensation plans. At June 30, 2012, approximately 66,000 shares of common stock were reserved for future issuance of stock options, restricted stock and stock appreciation rights. These plans provide for the granting of nonqualified and incentive stock options as well as restricted stock awards and stock appreciation rights to officers, employees and other key persons. The terms and vesting schedules of stock-based awards vary by type of grant and generally the awards vest based upon time-based conditions. Share-based compensation expense was $152,000 and $100,000 for the six and three months ended June 30, 2012, respectively, and was $80,000 and $40,000, respectively, for the comparable 2011 periods.

The Company's stock-based employee compensation plans allow for the issuance of restricted stock awards that may not be sold or otherwise transferred until certain restrictions have lapsed. The unearned stock-based compensation related to restricted stock granted is being amortized to compensation expense over the vesting period, which ranges from two to ten years. The share based expense for these awards was determined based on the market price of the Company's stock at the date of grant applied to the total number of shares that were anticipated to vest. As of June 30, 2012, the Company had unearned compensation of $144,000 associated with all of the Company's restricted stock awards, which will be expensed over approximately the next two years.

Stock option activity during the six months ended June 30, 2012, under all stock option plans is as follows:

						Average
				Weighted		Remaining
				Average		Contractual
	Number of			Exercise		Term
	Shares			Price		(in years)
Options outstanding, January 1, 2012		250,000		$	4.03		2
Granted		-			-		-
Forfeited		(1,000	)		3.01		-
Exercised		-			-		-
Options outstanding, June 30, 2012		249,000		$	4.03		2
Outstanding exercisable at June 30, 2012		220,000		$	4.29		2

At June 30, 2012, the aggregate intrinsic value of options outstanding and exercisable was $135,000 and $89,000, respectively. At the comparable 2011 period, the aggregate intrinsic value of options outstanding and exercisable was $350,000 and $212,000, respectively.

The following table summarizes the Company's nonvested stock option activity for the six months ended June 30, 2012:

	Number of Shares		Weighted-Average Grant-Date Fair Value
Nonvested stock options at January 1, 2012		43,000	$	1.02
Granted		-		-
Vested		14,000		1.02
Forfeited		-		-
Nonvested stock options at June 30, 2012		29,000	$	1.02

At June 30, 2012, there was approximately $4,000 of unearned compensation cost related to the above non-vested stock options. The cost is expected to be recognized over approximately two years.