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Note 13 - Share-Based Payments
 6 Months Ended
Jun. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
13. SHARE-BASED PAYMENTS

(a)    Stock options

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model, consistent with the guidance on stock compensation. Because option-pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options. The assumptions presented in the table below represent the weighted average of the applicable assumption used to value stock options at their grant date. The Company calculates expected volatility based on historical volatility of the Company’s common shares. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on historical exercise experience. The Company evaluated historical exercise behavior when determining the expected term assumptions. The risk-free rate assumed in valuing the options is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The Company determines the expected dividend yield percentage by dividing the expected annual dividend by the market price of our common shares at the date of grant.

During the three months ended June 30, 2012, stock options to purchase 504,000 common shares were granted. No stock options were granted during the three months ended June 30, 2011.

During the six months ended June 30, 2012, stock options to purchase 549,000 common shares were granted. No stock options were granted during the six months ended June 30, 2011.

The stock options granted during the three and six months ended June 30, 2012 expire on various dates through 2019.

Details of stock option transactions for the three months ended June 30, 2012 and June 30, 2011 are as follows:

   
Three months ended
June 30, 2012
   
Three months ended
June 30, 2011
 
   
Number of
Shares
   
Weighted
Average
exercise price
per share
   
Number of
Shares
   
Weighted
Average
exercise price
per share
 
Outstanding, beginning of period
   
8,458,699
   
$
0.57
     
8,254,749
   
$
0.56
 
Granted
   
504,000
     
1.38
     
—
     
—
 
Exercised
   
(378,936)
     
0.58
     
—
     
—
 
Forfeited
   
(59,250)
     
0.74
     
(17,625)
     
0.69
 
Expired
   
(14)
     
0.49
     
—
     
—
 
Outstanding, end of period
   
8,524,499
   
$
0.62
     
8,237,124
   
$
0.55
 
Options exercisable, end of period
   
6,864,749
   
$
0.55
     
6,972,124
   
$
0.53
 

Details of stock option transactions for the six months ended June 30, 2012 and June 30, 2011 are as follows:

   
Six months ended
June 30, 2012
   
Six months ended
June 30, 2011
 
   
Number of
Shares
   
Weighted
Average
exercise price
per share
   
Number of
Shares
   
Weighted
Average
exercise price
per share
 
Outstanding, beginning of period
   
8,746,041
   
$
0.57
     
8,272,249
   
$
0.56
 
Granted
   
549,000
     
1.35
     
—
     
—
 
Exercised
   
(673,153)
     
0.52
     
(7,250)
     
0.48
 
Forfeited
   
(97,375)
     
0.78
     
(27,875)
     
0.71
 
Expired
   
(14)
     
0.49
     
—
     
—
 
Outstanding, end of period
   
8,524,499
   
$
0.62
     
8,237 124
   
$
0.55
 
Options exercisable, end of period
   
6,864,749
   
$
0.55
     
6,972,124
   
$
0.53
 

As of June 30, 2012, the exercise prices, weighted average remaining contractual life and intrinsic values of outstanding options were as follows:

           
Options outstanding
   
Options exercisable
 
 
Exercise
price
 
Outstanding
Number
   
Weighted average exercise price per share
   
Weighted Average remaining contractual life (years)
   
Aggregate intrinsic value
   
Number
exercisable
   
Weighted average exercise price per share
   
Aggregate intrinsic value
 
$  0.31  -  $
0.48
   
3,136,074
   
$
0.38
     
1.1
   
$
2,272,845
     
3,136,074
   
$
0.38
   
$
2,272,845
 
 $  0.56  -  $
0.75
   
3,898,425
   
$
0.66
     
3.8
     
1,727,088
     
2,784,675
   
$
0.63
     
1,295,050
 
 $  0.80  -  $
1.38
   
1,490,000
   
$
1.04
     
3.7
     
233,830
     
944,000
   
$
0.85
     
231,580
 
             
8,524,499
   
$
0.62
     
2.8
   
$
4,233,763
     
6,864,749
   
$
0.55
   
$
3,799,475
 

Total unrecognized compensation cost relating to unvested stock options at June 30, 2012, prior to the consideration of expected forfeitures, was approximately $782,000 and is expected to be recognized over a weighted average period of 2.9 years.

The Company recorded stock-based compensation of $62,923 and $53,202 for the three months ended June 30, 2012 and 2011, respectively.

The Company recorded stock-based compensation of $125,207 and $127,374 for the six months ended June 30, 2012 and 2011, respectively.

The Company has not capitalized any stock-based compensation expense as part of the cost of an asset.

(b)   Restricted stock awards

During the three and six months ended June 30, 2012, no restricted stock awards were granted to any employees of the Company.

Restricted stock awards generally vest annually over a four year period. Holders of restricted stock may not sell, assign, transfer, pledge or otherwise dispose of an unvested stock. Unvested shares of restricted stock are held in escrow by the Company until the holder’s interest in such shares vests.

Holders of restricted stock have full stockholder rights with respect to any shares of Company stock issued to the participant under a stock award, whether or not the holder’s interest in those shares is vested. Accordingly, the holder has the right to vote such shares and to receive any regular cash dividends paid on such shares.

Total unrecognized compensation cost relating to unvested restricted stock awards at June 30, 2012, prior to the consideration of expected forfeitures, was approximately $500 and is expected to be recognized over a weighted average period of 0.8 years.

The Company recorded stock-based compensation associated with restricted stock awards of $173 and $197 for the three months ended June 30, 2012 and 2011, respectively.

The Company recorded stock-based compensation associated with restricted stock awards of $354 and $356 for the six months ended June 30, 2012 and 2011, respectively.