Share-Based Compensation

6 Months Ended

Jun. 30, 2012

Share-Based Compensation [Abstract]

Share-Based Compensation

(6) 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 $80,373 and $162,901 for the three and six month periods ended June 30, 2012, respectively, compared to $112,638 and $203,063 for the same periods of 2011.

As of June 30, 2012, there was approximately $341,000 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 1.6 years.

Stock Options and Stock Grants

During the six months ended June 30, 2012 and 2011, no shares of common stock were issued pursuant to option exercises. For the six months ended June 30, 2012, no stock options exercisable into shares of common stock were granted compared to 524,500 for the same period in 2011. For the six months ended June 30, 2012, stock options exercisable into 123,233 shares of common stock were forfeited compared to 82,567 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 June 30, 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 June 30, 2012 was $7,970, compared to $10,873 on December 31, 2011.

As of June 30, 2012, the Company does 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 the periods presented:

For the three months ended	June 30, 2012		June 30, 2011
Weighted-average risk-free interest rates:		—		2.66	%
Dividend yield:		—		—
Weighted-average expected life of the option:		—		7 Years
Weighted-average expected stock price volatility:		—		74.00	%
Weighted-average fair value of the options granted:		—	$	0.88

For the six months ended	June 30, 2012		June 30, 2011
Weighted-average risk-free interest rates:		—		2.51	%
Dividend yield:		—		—
Weighted-average expected life of the option:		—		7 Years
Weighted-average expected stock price volatility:		—		74.21	%
Weighted-average fair value of the options granted:		—	$	0.89