SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2013

SHARE-BASED COMPENSATION [Abstract]

SHARE-BASED COMPENSATION

5. SHARE-BASED COMPENSATION

Share-Based Compensation – Employees and Directors

For the three months ended June 30, 2013 and 2012, share-based compensation expense totaled approximately $2,000 and $5,000, respectively. For the six months ended June 30, 2013 and 2012, share-based compensation expense totaled approximately $15,000 and $46,000, respectively.

There was no related income tax benefit recognized because our deferred tax assets are fully offset by a valuation allowance.

As of June 30, 2013, $11,000 of total unrecognized compensation cost related to restricted stock units is expected to be recognized over a weighted average period of approximately 0.72 years.

We determine the fair value of option grant share-based awards at their grant date, using a Black-Scholes-Merton Option-Pricing Model.

During the six months ended June 30, 2013, no restricted stock units were granted, 38,228 shares of restricted stock units were vested and 21,459 shares of restricted stock units were forfeited; no options to purchase shares were granted or exercised and 211,333 options to purchase shares expired; no restricted stock awards were granted or exercised, nor forfeited. At June 30, 2013, 960,833 options with an average exercise price of $0.52 were outstanding.