XML 22 R37.htm IDEA: XBRL DOCUMENT v2.4.0.6
Share-Based Payments (First Aviation Services, Inc. [Member])
 12 Months Ended
Dec. 31, 2011
First Aviation Services, Inc. [Member]
  
Share-Based Payments
5. Share-Based Payments

The number of shares and their value per share reflect the impact of First Aviation's 1-for-20 reverse stock split, which was effective October 24, 2011.

The Company has a Stock Incentive Plan (the "Plan") with a total of 60,000 shares of common stock reserved for issuance. The Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, stock grants and stock purchase rights. At December 31, 2011, 59,600 shares (after forfeitures) have been issued under the Plan.

The Company's non-employee directors receive a portion of their annual compensation in the Company's stock. The value of stock issued is equivalent to the compensation expense, and the number of shares issued is based upon the fair value per share at the date issued. The Company's non- employee directors receive compensation in cash for committee meetings and special board meetings, excluding the four regularly scheduled board meetings and the annual shareholders' meeting that are paid for in stock as part of their annual compensation.

Compensation expense related to non-employee directors totaled $75 and $78, and the number of shares issued was 6,538 and 5,057 for the years ended December 31, 2011 and 2010, respectively. A total of 32,560 and 26,022 shares have been issued to directors under the Plan.

The Company has issued restricted stock awards to its President as follows:
 
   
2011
    
2010
  
   
Number of
Shares
    
Grant Date
Fair Value
    
Number of
Shares
    
Grant Date
Fair Value
  
                                 
Outstanding (nonvested) at beginning of year
     -     $ -       485     $ 43.20  
Granted
     3,000       8.60                  
Vested
     (1,500 )     8.60       (485 )   $ 43.20  
Outstanding (nonvested) at end of year
     1,500     $ 8.60       -     $ 43.20  

Compensation expense related to the restricted stock awards totaled $13 and $21, for the years ended December 31, 2011 and 2010, respectively. The number of shares issued as of December 31, 2011 was 5,006; 1,500 and 485 restricted shares were issued for the years ended December 31, 2011 and 2010, respectively.

As of December 31, 2011, $13 of unrecognized cost related to nonvested restricted stock awards is expected to be recognized in fiscal 2012.

The Company generally grants stock options to its employees for a fixed number of shares with an exercise price equal to the fair value of the stock on the date of grant. The fair value of the stock options granted was estimated at the date of grant using a Black-Scholes option-pricing model.

The fair value of each option granted was estimated at the date of grant using the following assumptions for the years ended December 31, 2011 and 2010:

 
2011
  
2010
  
           
Expected dividend yield
No
     0.0 %
Average risk-free interest rate
options
     1.5 %
Expected volatility
issued
     33.0 %
Expected life of option
in
  
5 years
  
Weighted average fair value of options granted during the year
2011
   $ .06  

All of the stock options vest ratably over two to three-year periods, beginning one year after the date of the grant, and expire ten years after issuance. The following table is a summary of activity related to stock options for the years ended December 31, 2011 and 2010:

   
2011
    
2010
  
   
Number
of
Options
    
Weighted
Average
Exercise
Price
    
Number
of
Options
    
Weighted
Average
Exercise
Price
  
                                 
Outstanding at beginning of year 
     18,083     $ 33.20       9,083     $ 37.00  
Granted
     -       -       9,000       29.60  
Exercised
     -       -       -       -  
Forfeited
     (3,333 )     35.47       -       -  
Outstanding at end of year 
     14,750       32.77       18,083       33.20  
Exercisable at end of year
     10,417       34.40       6,916       44.00  

The aggregate intrinsic value of options outstanding and exercisable at December 31, 2011 was $0.

The weighted average remaining contractual term of options outstanding and exercisable at December 31, 2011 is 6.7 years.

   
2011
    
2010
  
   
Number
of
Options
    
Weighted
Average
Exercise
Price
    
Number
of
Options
    
Weighted
Average
Exercise
Price
  
                                 
Nonvested at beginning of the year
     11,167     $ 26.60       5,333     $ 22.60  
Granted
     -       -       9,000       29.60  
Exercised
     (3,834 )     29.38       (3,166 )     28.60  
Forfeited
     (3,000 )     29.60       -       -  
Nonvested at beginning of the year
     4,333       28.86       11,167       26.60  

Compensation expense related to the stock options totaled $5 and $33 for the years ended December 31, 2011 and 2010, respectively. At December 31, 2011, $13 of unrecognized compensation cost related to nonvested stock options is expected to be recognized over a weighted average period of approximately 1.7 years.