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4) Stock-based Compensation | 9 Months Ended
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Sep. 30, 2013
Notes |
4) Stock-based Compensation | 4) Stock-Based Compensation The Company has five fixed option plans (the “1993 Plan,” the “2000 Plan”, the “2003 Plan”, the “2006 Plan” and the “2013 Plan”). Compensation expense for options issued of $4,122 and $93,074 has been recognized for these plans for the quarters ended September 30, 2013 and 2012, respectively, and $66,711 and $187,510 for the nine months ended September 30, 2013 and 2012, respectively. Options to purchase 5,000 shares of the Company’s common stock were granted December 7, 2012. The fair value relating to stock-based compensation is $15,920 and will be expensed as options become available to exercise at the rate of 25% at the end of each quarter over the twelve months ended December 7, 2013. Options to purchase 342,000 shares of the Company’s common stock were granted April 13, 2012. The fair value relating to stock-based compensation is $219,881. These options have been expensed and are available to be exercised. The weighted-average fair value of each option granted in 2012 under the 2006 Plan, is estimated at $3.18 for the December 7, 2012 options as of the grant date using the Black Scholes Option Pricing Model with the following weighted-average assumptions: dividend yield of 5%, volatility of 73.89%, risk-free interest rate of 0.70%, and an expected term of 5.31 years. The weighted-average fair value of each option granted in 2012 under the 2003 Plan and the 2006 Plan, is estimated at $0.66 for the April 13, 2012 options as of the grant date using the Black Scholes Option Pricing Model with the following weighted-average assumptions: dividend yield of 5%, volatility of 72.58%, risk-free interest rate of 1.04%, and an expected term of 5.32 years, respectively. The Company generally estimates the expected life of the options based upon the contractual term of the options adjusted for actual experience. Future volatility is estimated based upon the a weighted historical volatility of the Company’s Class A common stock and three peer company stocks over a period equal to the estimated life of the options. Common stock issued upon exercise of stock options are generally new share issuances rather than from treasury shares. A summary of the status of the Company’s stock incentive plans as of September 30, 2013, and the changes during the nine months ended September 30, 2013, is presented below:
|  | Number of Class A Shares |  | Weighted Average Exercise Price |  | Number of Class C Shares(1) |  | Weighted Average Exercise Price(1)
Outstanding at January 1, 2013 |  | 972,253 |  | $ 2.07 |  | 5,838,505 |  | $ 2.18
Granted |  | - |  | - |  | - |  | -
Exercised |  | (482,866) |  | 2.15 |  | (1,906,022) |  | 2.24
Cancelled |  | (76,032) |  | 3.36 |  | (638,138) |  | 3.33
Outstanding at September 30, 2013 |  | 413,355 |  | $ 1.84 |  | 3,294,345 |  | $ 1.78
As of September 30, 2013: |  |  |  |  |  |  |  |
Options Exercisable |  | 412,040 |  | $ 1.83 |  | 3,294,345 |  | $ 1.78
Weighted average contractual term of options |  |  |  |  |  |  |  |
outstanding at September 30, 2013 |  | 5.95 years |  |  |  | 2.37 years |  |
Weighted average contractual term of options |  |  |  |  |  |  |  |
exercisable at September 30, 2013 |  | 5.94 years |  |  |  | 2.37 years |  |
Aggregated intrinsic value of options |  |  |  |  |  |  |  |
outstanding at September 30, 2013 |  | $1,748,854 |  |  |  | $1,409,984 |  |
Aggregated intrinsic value of options |  |  |  |  |  |  |  |
exercisable at September 30, 2013 |  | $1,748,854 |  |  |  | $1,409,984 |  |
(1) Class “C” shares are converted to Class “A” shares on a 10 to 1 ratio. The Weighted Average Exercise Price is based on Class A Common shares. |  |  |  |  |  |  |  |
The total intrinsic value (which is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date) of stock options exercised during the nine months ended September 30, 2013 and 2012 was $2,170,468 and $92,409, respectively.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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