Stock Based Compensation

6 Months Ended

Jun. 30, 2013

Stock Based Compensation [Abstract]

Stock Based Compensation

 

(Note 2) - Stock Based Compensation:

At June 30, 2013, the Company had a stock-based employee compensation plan. At June 30, 2013, there were no shares of common stock reserved for future issuance of stock options, restricted stock and stock appreciation rights. The plan provided 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 $56,000 and $28,000 for the six and three months ended June 30, 2013, respectively, and was $152,000 and $100,000, respectively, for the comparable 2012 periods.

The Company's stock-based employee compensation plan allows 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 six months ended June 30, 2013, 130,000 shares of restricted stock were awarded to senior management which will vest over seven years. As of June 30, 2013, the Company had unearned compensation of $453,000 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 June 30, 2013 was approximately 149,000 shares.

Stock option activity during the six months ended June 30, 2013, under all stock option plans is as follows:

	Number of Shares			Weighted Average Exercise Price		Average Remaining Contractual Term (in years)
Options outstanding, January 1, 2013		178,000		$	3.58		2
Granted		-			-		-
Forfeited		(3,000	)		3.70		-
Exercised		-			-		-
Options outstanding, June 30, 2013		175,000		$	3.58		1
Outstanding exercisable at June 30, 2013		161,000		$	3.72		1

At June 30, 2013, the aggregate intrinsic value of options outstanding and exercisable was $115,000 and $96,000, respectively. At the comparable 2012 period, the aggregate intrinsic value of options outstanding and exercisable was $135,000 and $89,000, respectively.

The following table summarizes the Company's nonvested stock option activity for the six months ended June 30, 2013:

	Number of Shares			Weighted-Average 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 June 30, 2013		14,000		$	1.02