SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2011

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

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

C.   SHARE-BASED COMPENSATION

Concurrent with the issuance of the put rights, all of the Company’s vested and outstanding share-based payments awards were required to be accounted for as liability awards.   At December 31, 2010, the fair value of liability classified stock option awards was estimated utilizing the Black-Scholes option pricing model as probability weighted for potential put right outcomes.  The valuation model utilizes inputs including expected volatility, expected life, risk-free interest rate, expected dividends and probability weighting (Level 3 inputs).  The assumption used to value the liability awards included risk free interest rates of 0%-3.5%, volatility of 70%, expected terms of 1-10 years, a dividend yield of 0% and a probability weighting based on potential put right outcomes. The fair value of restricted stock awards classified as liabilities are calculated using the then estimated put price determined as defined in our Restated Certificate of Incorporation.

During the nine month period ended September 30, 2011, the Level 3 activity related to the Company’s liability classified share-based payment awards resulted in a $660,000 reduction of the share-based payment liability and increase to additional paid-in capital.