Stock-Based Awards

12 Months Ended

Dec. 31, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

7. Stock-Based Awards

The 2006 Incentive Plan initially adopted in 2006, and amended and restated in 2011 (the “2006 Incentive Plan”), provides for grants of options with terms of up to ten years, grants of restricted stock or stock unit awards (SUAs), issuances of stock bonuses or grants other stock-based awards, covering up to 500,000 shares of common stock, plus cash based awards, to officers, directors, employees, and consultants. As of December 31, 2012, 220,069 shares remained available for future grant under the 2006 Incentive Plan.

The fair value of the SUAs is determined by the closing price on the date of grant. The SUAs vest over a period of two to four years and are convertible into an equivalent number of shares of the Company’s common stock provided that the employee receiving the award remains continuously employed throughout the vesting period. The Company records compensation expense related to the SUAs on a straight-line basis over the vesting term of the SUA. Employees are issued shares upon vesting, net of tax withholdings.

The Company granted 65,000 SUAs on May 22, 2012. The fair value of the SUAs was $9.79 per share, which was the closing price of the Company’s stock on that date. The SUAs vest over a period of two to four years and are convertible into an equivalent number of shares of the Company’s common stock provided that the awardee remains continuously employed throughout the vesting period. In addition, 9,619 SUAs were withheld for taxes, in conjunction with the vesting of SUA’s granted in prior years, and consequently, added back to the shares available for future grant.

The Company granted 59,000 SUAs on May 24, 2011. The fair value of the SUAs was $10.03 per share, which was the closing price of the Company’s stock on that date. The SUAs vest over a period of two to four years and are convertible into an equivalent number of shares of the Company’s common stock provided that the awardee remains continuously employed throughout the vesting period.

The Company granted 94,000 SUAs on April 7, 2010. The fair value of the SUAs was $7.75 per share, which was the closing price of the Company’s stock on that date. The SUAs vest over a period of two to four years and are convertible into an equivalent number of shares of the Company’s common stock provided that the awardee remains continuously employed throughout the vesting period. Of these 94,000 units, 20,350 were cancelled upon termination of three employees in 2010.

The Company also has stock option plans that have expired or been terminated, but shares can be issued upon exercise of outstanding options that were granted prior to such expiration or termination. No additional grants of options or other stock based awards may be made under such expired or terminated plans. Activity for these plans is included in this footnote. Options granted under the plans consisted of both non-qualified and incentive stock options and were granted in each case at a price that was not less than the fair market value of the common stock at the date of grant. These options generally have contractual lives of ten years and they are all fully exercisable.

A summary of stock option activity for the Company’s stock option plans is as follows:

				Weighted		Weighted
				Average		Average
				Excersise		Remaining		Aggregate
	Number of			Price		Contractual		Intrinsic
	Shares			per Share		Life		Value(1)
Outstanding, December 31, 2009		336,921		$	14.80
Granted		—			—
Exercised		—			—
Terminated		(47,550	)		19.93
Outstanding, December 31, 2010		289,371			13.96
Granted		—			—
Exercised		—			—
Terminated		(68,132	)		15.06
Outstanding, December 31, 2011		221,239			13.62
Granted		—			—
Exercised		—			—
Terminated		(21,401	)		13.61
Outstanding, December 31, 2012		199,838		$	13.62		2.1 years	$	32,492

(1) The aggregate intrinsic value on this table was calculated based on the amount, if any, by which the closing market value of the Company’s stock on December 31, 2012 ($10.75) exceeded the exercise price of any of the underlying options, multiplied by the number of shares subject to each such option.

A summary of stock unit award activity for the Company is as follows:

				Weighted
				Average
				Remaining		Aggregate
	Number of			Contractual		Intrinsic
	Shares			Life		Value(2)
Outstanding & Unvested, December 31, 2009		42,600
Granted		94,000
Converted to common stock*		(21,550	)
Terminated		(20,350	)			$	179,801
Outstanding & Unvested, December 31, 2010		94,700
Granted		59,000
Converted to common stock*		(34,600	)
Terminated		—				$	355,351
Outstanding & Unvested, December 31, 2011		119,100
Granted		65,000
Converted to common stock*		(46,625	)
Terminated		—				$	458,211
Outstanding & Unvested, December 31, 2012		137,475			2.8 years	$	1,477,856
Available for grant, December 31, 2012		220,069

(2) The aggregate intrinsic value on this table was calculated based on the closing market price of the Company’s stock on December 31, 2012 ($10.75). For value on the converted stock, the price used is the price on the grant date.

* Figure includes 9,619 shares in 2012, 8,406 shares in 2011 and 6,064 shares in 2010 withheld to cover federal income taxes.

As of December 31, 2012, a total of 557,382 shares of common stock were reserved for issuance under the various stock plans. As of December 31, 2012, the unamortized fair value of awards relating to SUAs was $990,031 to be amortized over a weighted average period of approximately 2.8 years.