Annual report pursuant to section 13 and 15(d)

CAPITAL STOCK, STOCK PLANS, WARRANTS AND INCENTIVE COMPENSATION (Tables)

CAPITAL STOCK, STOCK PLANS, WARRANTS AND INCENTIVE COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2012

CAPITAL STOCK, STOCK PLANS, WARRANTS AND INCENTIVE COMPENSATION [Abstract]

Summary of the status of options under the Company's Plans

Summary of the status of options under the Company's total Plans and a Non-Qualified Stock Option Agreement, as of December 31, 2012, 2009, and 2010, and changes during the years ending on those dates is presented below. The Company's Plans consist of the 1993 Non-Qualified Stock Option Plan, the 2004 and 2010 Stock Option Plans, and the 1992 and 2003 Outside Directors Stock Plans:

	2012							2011							2010
	Shares			Weighted Average Exercise Price		Intrinsic Value (a)		Shares			Weighted Average Exercise Price		Intrinsic Value (a)		Shares			Weighted Average Exercise Price		Intrinsic Value (a)
1993 Non-qualified Stock Option Plan
Balance at beginning of year		358,000		$	2.18				630,359		$	2.00				991,359		$	1.89
Exercised		—			—	$	—		—			—	$	—		(350,000	)		1.70	$	227,000
Forfeited		(5,500	)		2.19				(272,359	)		1.76				(11,000	)		1.45
Balance at end of year		352,500			2.18	$	—		358,000			2.18	$	—		630,359			2.00	$	—
Options exercisable at year end		352,500			2.18	$	—		358,000			2.18	$	—		630,359			2.00	$	—
1992 Outside Directors Stock Plan
Balance at beginning of year		55,000		$	2.54				85,000		$	2.50				100,000		$	2.38
Forfeited		(40,000	)		2.73				(30,000	)		2.59				(15,000	)		1.69
Balance at end of year		15,000			2.02	$	—		55,000			2.54	$	—		85,000			2.50	$	—
Options exercisable at year end		15,000			2.02	$	—		55,000			2.54	$	—		85,000			2.50	$	—
2003 Outside Directors Stock Plan
Balance at beginning of year		756,000		$	2.11				666,000		$	2.21				594,000		$	2.27
Granted		60,000			1.10				90,000			1.41				72,000			1.68
Balance at end of year		816,000			2.04	$	—		756,000			2.11	$	12,600		666,000			2.21	$	—
Options exercisable at year end		756,000			2.11	$	—		666,000			2.21	$	—		594,000			2.27	$	—
2004 Stock Option Plan
Balance at beginning of year		1,320,833		$	2.03				1,374,166		$	2.04				1,424,166		$	2.05
Forfeited		(410,333	)		1.87				(53,333	)		2.25				(50,000	)		2.26
Balance at end of year		910,500			2.11	$	—		1,320,833			2.03	$	18,900		1,374,166			2.04	$	30,900
Options exercisable at year end		910,500			2.11	$	—		1,280,833			2.05	$	13,700		1,022,333			2.04	$	14,100
2010 Stock Option Plan(b)
Balance at beginning of year		300,000		$	1.57				—		$	—				—		$	—
Granted		—			—				300,000			1.57				—			—
Balance at end of year		300,000			1.57	$	—		300,000			1.57	$	—		—			—	$	—
Options exercisable at year end		100,000			1.57	$	—		—			—	$	—		—			—	$	—
Non-Qualified Stock Option Agreement(c)
Balance at beginning of year		250,000		$	1.35				—		$	—				—		$	—
Granted		—			—				250,000			1.35				—			—
Balance at end of year		250,000			1.35	$	—		250,000			1.35	$	50,000		—			—	$	—
Options exercisable at year end		62,500			1.35	$	—		—			—	$	—		—			—	$	—

(a)	Represents the difference between the market price at the date of exercise or the end of the year, as applicable, and the exercise price.

(b)	Plan was approved in September 2010 which authorizes grants of up to an aggregate of 1,000,000 non-qualified and incentive stock options.

(c)	Option agreement entered into between Christopher Leichtweis, President of SEC and the Company on October 31, 2011. See Note 5 – "Stock Based Compensation" for further information on this agreement.

Summary of total Stock Options

The summary of the Company's total Plans and a Non-Qualified Stock Option Agreement as of December 31, 2012, and changes during the period then ended are presented as follows:

		Shares				Weighted Average Exercise Price	Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Options outstanding January 1, 2012		3,039,833			$	1.98
Granted		60,000				1.10
Exercised	─			─					$	─
Forfeited/Expired		(455,833	)			1.94				─
Options outstanding End of Period (1)		2,644,000				1.96		3.5	$	─
Options Exercisable at December 31, 2012(2)		2,196,500			$	2.08		2.8	$	─
Options Vested and expected to be vested at December 31, 2012		2,644,000			$	1.96		3.5	$	─

(1)	Options with exercise prices ranging from $1.10 to $2.95

(2)	Options with exercise prices ranging from $1.41 to $2.95