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Stock-Based Compensation Plans
 12 Months Ended
Dec. 31, 2011
Stock-Based Compensation Plans [Abstract]  
STOCK-BASED COMPENSATION PLANS

(4) STOCK-BASED COMPENSATION PLANS

The Company has a 2005 Stock Option Plan (the “Option Plan”) and has reserved 3,000,000 shares of common stock for issuance under the Option Plan. Vesting terms are determined by the Board of Directors. All stock options under the Option Plan expire no later than ten years from the date of grant.

For the years ended December 31, 2011 and 2010, the Company recorded compensation expense related to stock options of $267, for each respective year. This stock-based compensation expense is included in selling, general and administrative expense in the accompanying consolidated statements of operations.

For the year ended December 31, 2011, the Company granted options to purchase up to 299,000 shares of common stock to employees at exercise prices that ranged from $0.62 to $0.90 per share. During the year ended December 31, 2010, the Company granted options to purchase up to 589,500 shares of common stock at exercise prices that ranged from $0.41 to $1.06 per share.

The Company used the Black Scholes option pricing model to determine the fair value of stock option grants, using the following assumptions during the years ended December 31, 2011 and 2010:

 

         
    2011   2010

Weighted average expected term

   6.25 years   6.23 years

Weighted average volatility

   124%   110%

Weighted average risk-free interest rate

   2.2%   2.5%

Dividend yield

   0%   0%

The expected term of stock options represents the period of time that the stock options granted are expected to be outstanding based on historical exercise trends. The expected volatility is based on the historical price volatility of the Company’s common stock. The risk-free interest rate represents the U.S. Treasury bill rate for the expected term of the related stock options. The dividend yield represents the anticipated cash dividend over the expected term of the stock options. Forfeitures of share based payment awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated average forfeiture rate for the years ended December 31, 2011 and 2010 was 33% and 35%, respectively.

 

A summary of stock option activity under the Option Plan for the years ended December 31, 2011 and 2010, are presented below:

 

                             
    Shares
Under
Option		     Weighted
Average
Exercise
Price		     Weighted
Average
Remaining
Contractual
Life		   Aggregate
Intrinsic
Value		  

Outstanding at January 1, 2010

     1,387,250     $ 1.10              

Granted

     589,500     $ 0.66              

Exercised

     —       $ —                

Forfeited

     (131,500 )    $ 1.07              
   

 

 

                      

Outstanding at December 31, 2010

     1,845,250     $ 0.96     7.2 Years   $ 86  
   

 

 

                      

Exercisable at December 31, 2010

     649,500     $ 1.05     4.5 Years   $ 53  
   

 

 

                      

Outstanding at January 1, 2011

     1,845,250     $ 0.96              

Granted

     299,000     $ 0.74              

Exercised

     (112,500 )    $ 0.43       $ 46              

Forfeited

     (370,000 )    $ 0.85              
   

 

 

                      

Outstanding at December 31, 2011

     1,661,750     $ 0.98     7.5 Years   $ 98  
   

 

 

                      

Exercisable at December 31, 2011

     808,252     $ 1.11     6.7 Years   $ 58  
   

 

 

                      

A summary of status of the Company’s non-vested shares under option as of and for the year ended December 31, 2011, is presented below:

 

                 
    Non-vested
Shares
Under
Option		     Weighted
Average
Grant
Date Fair
Value		  

Non-vested at January 1, 2011

     1,195,750     $ 0.79  

Granted

     299,000     $ 0.67  

Vested

     (358,377 )    $ 0.86  

Forfeited

     (282,875 )    $ 0.74  
   

 

 

          

Non-vested at December 31, 2011

     853,498     $ 0.85  
   

 

 

          

As of December 31, 2011, the Company had approximately $314 of unrecognized compensation expense related to stock options that will be recognized over a weighted-average period of approximately 2.2 years.