Share-Based Compensation

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

(6) Share-Based Compensation

We follow FASB ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest. We recognized compensation expense related to stock options of $69,577 and $138,755 for the three and six month periods ended June 30, 2013, respectively, compared to $80,373 and $162,901 for the same periods in 2012.

As of June 30, 2013, there was approximately $347,000 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 2.0 years.

Stock Options and Stock Grants

During the six months ended June 30, 2013, proceeds of $3,000 were realized, and 10,000 shares of common stock were issued pursuant to option exercises compared to none for the same period in 2012. During the six months ended June 30, 2013, 553,000 stock options were granted compared to none for the same period in 2012. During the six months ended June 30, 2013, 91,133 stock options were forfeited compared to 123,233 stock options forfeited during the same period in 2012.

Stock Appreciation Rights

Prior to 2011, we granted outside directors stock appreciation rights (SARs). The change in fair value of the awards granted during prior years is included in non-cash compensation expense for the three and six months ended June 30, 2013 and 2012. The SARs granted vested immediately and are payable upon the directors’ removal or resignation from the position of director. These awards are accounted for as liability awards, included in accrued expenses as of June 30, 2013 and 2012, and adjusted to fair value each reporting period. The fair value of the liability on June 30, 2013 was $18,969 compared to $8,749 on December 31, 2012.

As of June 30, 2013, we 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 the periods presented:

For the three months ended	June 30, 2013			June 30, 2012
Weighted-average risk-free interest rates:		1.47	%		—
Dividend yield:		—			—
Weighted-average expected life of the option:		7 Years			—
Weighted-average expected stock price volatility:		95.16	%		—
Weighted-average fair value of the options granted:	$	0.47			—

For the six months ended	June 30, 2013			June 30, 2012
Weighted-average risk-free interest rates:		1.34	%		—
Dividend yield:		—			—
Weighted-average expected life of the option:		7 Years			—
Weighted-average expected stock price volatility:		92.37	%		—
Weighted-average fair value of the options granted:	$	0.33			—