Share-Based Compensation

3 Months Ended

Mar. 31, 2012

Share-Based Compensation [Abstract]

Share-Based Compensation

(7) Share-Based Compensation

The Company follows FASB ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest. The Company recognized compensation expense related to stock options of $82,528 and $90,425 for the three month periods ended March 31, 2012 and 2011, respectively.

As of March 31, 2012, there was approximately $423,000 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Company's stock option plans. That cost is expected to be recognized over a remaining weighted-average period of 1.7 years.

Stock Options and Stock Grants

During the three months ended March 31, 2012 and 2011, no shares of common stock were issued pursuant to option exercises. For the three months ended March 31, 2012, no stock options exercisable into shares of common stock were granted compared to 89,000 for the same period in 2011. For the three months ended March 31, 2012, stock options exercisable into 121,232 shares of common stock were forfeited compared to 62,400 shares for the same period in 2011.

Stock Appreciation Rights

During 2010 and 2009, the Company granted its outside directors stock appreciation rights (SAR's) totaling 106,750 shares, under the Company's Amended and Restated 2006 Stock Appreciation Rights Plan. These awards are accounted for as liability awards, included in accrued expenses as of March 31, 2012 and 2011, and adjusted to fair value each reporting period. The fair value of the liability for the 87,500 shares that were outstanding on March 31, 2012 was $10,752, compared to $10,873 on December 31, 2011.

As of March 31, 2012, the Company did not have any unvested restricted stock or performance shares outstanding.

The following table illustrates the various assumptions used to calculate the Black-Scholes option pricing model for stock options granted during three month periods ended:

	March 31, 2012		March 31, 2011
Weighted-average risk-free interest rates:		—		2.54	%
Dividend yield:		—		—
Weighted-average expected life of the option:		—		7 Years
Weighted-average expected stock price volatility:		—		75.23	%
Weighted-average fair value of the options granted:		—	$	.95