STOCK-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2013

STOCK-BASED COMPENSATION PLANS [Abstract]

STOCK-BASED COMPENSATION PLANS

11.STOCK-BASED COMPENSATION PLANS: The Company had a stock-based compensation plan, which provided for the granting of nonqualified and incentive stock options, as well as restricted stock awards and stock appreciation rights to officers, employees and key persons. The plan granted options at the market value of the Company's stock on the date of such grant and all options expire ten years after granted.  The terms and vesting schedules for share-based awards vary by type of grant and the employment status of the grantee with vesting ranging from one to ten years.  Generally the awards vest based upon time-based conditions. Stock option exercises are funded through the issuance of the Company's common stock. Stock compensation expense for the years ended December 31, 2013 and 2012 was $111,000 and $211,000, respectively.

The following table summarizes the Company's nonvested restricted stock activity for the year ended December 31, 2013:

				Weighted-Average
	Number of Shares			Grant-Date Fair Value
Nonvested restricted  stock at January 1, 2013		18,000		$	5.32
Granted		130,000			3.23
Vested		(9,000	)		5.32
Forfeited		-			-
Nonvested restricted stock at December 31, 2013		139,000		$	3.37

The following table summarizes activity in stock options:

December 31,	2013							2012
						Average
				Weighted-		Remaining					Weighted-
				Average		Contractual					Average
				Exercise		Term					Exercise
	Options			Price		(in years)		Options			Price
Outstanding at beginning of year		178,000		$	3.58		2		250,000		$	4.03
Granted		-			-		-		-			-
Forfeited		(64,000	)		4.47		-		(72,000	)		5.13
Exercised		-			-		-		-			-
Outstanding at end of year		114,000		$	3.08		1		178,000		$	3.58
Outstanding and exercisable at end of year		100,000		$	3.24		1		150,000		$	3.88
Weighted-average fair value of options granted during the year					-							-

The following table summarizes information about stock options outstanding and exercisable at December 31, 2013:

		Options Outstanding						Options Exercisable
				Weighted-
				average		Weighted-				Weighted-
				Remaining		average				average
Range of		Number		Contractual		Exercise		Number		Exercise
Exercise Prices		Outstanding		Life/Years		Price		Exercisable		Price
$	2.00		83,000		1.25	$	2.00		69,000	$	2.00
$	5.96		31,000		.50	$	5.96		31,000	$	5.96
$	2.00 - $5.96		114,000		1.00	$	3.08		100,000	$	3.24

At December 31, 2013, the aggregate intrinsic value of options outstanding was $116,000 and the aggregate intrinsic value of options exercisable was $96,000. At December 31, 2012, the aggregate intrinsic value of options outstanding was $102,000 and the aggregate intrinsic value of options exercisable was $67,000.

The following table summarizes the Company's nonvested stock option activity for the year ended December 31, 2013:

				Weighted-Average
	Number of 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 December 31, 2013		14,000		$	1.02

The following table summarizes the Company's nonvested stock option activity for the year ended December 31, 2012:

				Weighted-Average
	Number of Shares			Grant-Date Fair Value
Nonvested stock options at January 1, 2012		43,000		$	1.02
Granted		-			-
Vested		(15,000	)		1.02
Forfeited		-			-
Nonvested stock options at December 31, 2012		28,000		$	1.02

The Company's stock-based employee compensation plan allowed 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 year ended December 31, 2013, 130,000 shares of restricted stock were awarded to senior management which will vest over seven years. As of December 31, 2013, the Company had unearned compensation of $399,000 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 December 31, 2013 was approximately 139,000 shares.