Annual report pursuant to section 13 and 15(d)

STOCK BASED COMPENSATION (Tables)

v2.4.0.6
STOCK BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 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 employee and director stock options granted and the related assumptions used in the Black-Scholes option pricing model used to value the options granted for fiscal year 2012, 2011, and 2010 were as follows:
 
     
Employee Stock Option Granted
  
     
For Year Ended
  
     
2012 (4)
     
2011
      
2010 (4)
 
Weighted-average fair value per share
   $ —     $ 0.82     $ —  
Risk -free interest rate (1)
    —       1.29%-1.92%       —  
Expected volatility of stock (2)
    —       58.72%-60.02%       —  
Dividend yield
     —      
None
       —  
Expected option life (in years) (3)
    —       6.0       —  

   
Outside Director Stock Option Granted
  
   
For Year Ended
  
   
2012
    
2011
    
2010
  
Weighted-average fair value per share
   $ 0.71     $ 0.94     $ 1.12  
Risk -free interest rate (1)
    1.75%       2.29%       2.52%  
Expected volatility of stock (2)
    56.74%       57.48%       60.69%  
Dividend yield
    
None
      
None
      
None
  
Expected option life (in years) (3)
    10.0       10.0       10.0  

 
(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.

 
(4)
No employee option grants were made in 2012 and 2010.
Stock-based compensation recognized for employee and director stock options
The following table summarizes stock-based compensation recognized for the fiscal year 2012, 2011, and 2010.
 
   
Year Ended
  
   
2012
    
2011
    
2010
  
Employee Stock Options
   $ 140,000     $ 246,000     $ 276,000  
Director Stock Options
     51,000       99,000       67,000  
Total
   $ 191,000     $ 345,000     $ 343,000