Quarterly report pursuant to sections 13 or 15(d)

Stock Based Compensation (Tables)

v2.4.0.6
Stock Based Compensation (Tables)
9 Months Ended
Sep. 30, 2012
Stock Based Compensation [Abstract]  
Assumptions used to value the options granted
The Company estimates fair value of stock options using the Black-Scholes valuation model.  Assumptions used to estimate the fair value of stock options granted include the exercise price of the award, the expected term, the expected volatility of the Company's stock over the option's expected term, the risk-free interest rate over the option's expected term, and the expected annual dividend yield.  The fair value of the options granted during the nine months ended September 30, 2012 and 2011 and the related assumptions used in the Black-Scholes option model used to value the options granted were as follows:

 
Outside Director Stock Options Granted
 
 
September 30, 2012
 
 
September 30, 2011
 
Weighted-average fair value per share
 
$
.71
 
 
$
.94
 
Risk -free interest rate (1)
 
 
1.75
%
 
 
2.29
%
Expected volatility of stock (2)
 
 
56.74
%
 
 
57.48
%
Dividend yield
 
None
 
 
None
 
Expected option life (3)
 
10.0 years
 
 
10.0 years
 
 
 
Employee Stock Options Granted
 
 
During Nine Months Ended September 30, 2011
 
Weighted-average fair value per share
 
$
.89
 
Risk -free interest rate (1)
 
 
1.92
%
Expected volatility of stock (2)
 
 
60.02
%
Dividend yield
 
None
 
Expected option life (3)
 
6.0 years
 

(1)  The risk-free interest rate is based on the U.S. Treasury yield in effect at the grant date over the expected term of the option.

(2)  The expected volatility is based on historical volatility from our traded Common Stock over the expected term of the option.

(3)  The expected option life is based on historical exercises and post-vesting data.

Stock-based compensation recognized for employee and director stock options
The following table summarizes stock-based compensation recognized for the three and nine months ended September 30, 2012 and 2011 for our employee and director stock options.

   
Three Months Ended
   
Nine Months Ended
 
Stock Options
 
September 30,
   
September 30,
 
   
2012
   
2011
   
2012
   
2011
 
Employee Stock Options
  $ 34,000     $ 53,000     $ 106,000     $ 205,000  
Director Stock Options
    4,000       17,000       29,000       57,000  
Total
  $ 38,000     $ 70,000     $ 135,000     $ 262,000