Stock Based Compensation

3 Months Ended

Mar. 31, 2013

Stock Based Compensation [Abstract]

Stock Based Compensation

(Note 2) - Stock Based Compensation:

At March 31, 2013, the Company has two stock-based employee compensation plans. At March 31, 2013, approximately 6,000 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 $28,000 and $52,000 for the three months ended March 31, 2013 and 2012, respectively.

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 seven 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. During the three months ended March 31, 2013, 130,000 shares of restricted stock were awarded to the senior management which will vest over seven years. As of March 31, 2013, the Company had unearned compensation of $480,000 associated with all of the Company's restricted stock awards, which will be expensed over approximately the next seven years. The unvested portion of restricted stock awards at March 31, 2013 and 2012 were approximately 149,000 and 28,000 shares respectively.

Stock option activity during the three months ended March 31, 2013, 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, 2013		178,000	$	3.58		2
Granted		-		-		-
Forfeited		-		-		-
Exercised		-		-		-
Options outstanding, March 31, 2013		178,000	$	3.58		2
Outstanding exercisable at March 31, 2013		164,000	$	3.72		2

At March 31, 2013, the aggregate intrinsic value of options outstanding and exercisable was $137,000 and $113,000, respectively. At the comparable 2012 period, the aggregate intrinsic value of options outstanding and exercisable was $213,000 and $145,000, respectively.

The following table summarizes the Company's nonvested stock option activity for the three months ended March 31, 2013:

	Number of			Weighted-Average
	Shares			Grant-Date Fair Value
Nonvested stock options at January 1, 2013		28,000		$	1.02
Granted		-			-
Vested		(14,000	)	$	1.02
Forfeited		-			- .
Nonvested stock options at March 31, 2013		14,000		$	1.02

At March 31, 2013, there was approximately $1,000 of unearned compensation cost related to the above non-vested stock options. The cost is expected to be recognized over the next year.