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Stock-Based Compensation Plans
 3 Months Ended
Mar. 31, 2012
Stock-Based Compensation Plans [Abstract]  
STOCK-BASED COMPENSATION PLANS
(5) STOCK-BASED COMPENSATION PLANS

The Company has reserved 3,000,000 shares of common stock for issuance under its 2005 Stock Option Plan (the “Option Plan”). Vesting provisions 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.

In the three months ended March 31, 2012 and 2011, the Company recorded compensation expense related to stock options of $46 and $78, respectively. Stock-based compensation recorded in the accompanying condensed consolidated statement of operations for the three months ended March 31, 2012 and 2011 included $7 and $9, respectively, in cost of goods sold and $39 and $69, respectively, in selling, general and administrative expenses. In the three months ended March 31, 2012, the Company did not grant options to employees to purchase shares of common stock. In the three months ended March 31, 2011, the Company granted options to purchase up to 133,500 shares of common stock to employees at exercise prices that ranged from $0.62 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 three months ended March 31, 2011:

 

     
    2011

Weighted average expected term

   6.25 years

Weighted average volatility

   108%

Weighted average risk-free interest rate

   2.7%

Dividend yield

   0%

The weighted average 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 weighted average expected volatility is based on the historical price volatility of the Company’s common stock. The weighted average 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 Company’s 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 three months ended March 31, 2012 and 2011 was 33% and 35%, respectively.

A summary of stock option activity under the Option Plan for the three months ended March 31, 2012 is presented below:

 

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

Outstanding at January 1, 2012

     1,661,750     $ 0.98                  

Granted

     —         —                    

Exercised

     —         —                    

Forfeited

     (32,000 )    $ 1.06                  
   

 

 

                          

Outstanding at March 31, 2012

     1,629,750     $ 0.98       7.2 Years     $ 160  
   

 

 

                          

Exercisable at March 31, 2012

     851,251     $ 1.10       6.5 Years     $ 88  
   

 

 

                          

 

A summary of status of the Company’s non-vested share awards as of and for the three months ended March 31, 2012 is presented below:

 

                 
    Nonvested Shares
Shares Under Option		     Weighted Average
Grant Date Fair Value		  

Non-vested at January 1, 2012

     853,498     $ 0.85  

Granted

     —         —    

Vested

     (61,249 )    $ 0.78  

Forfeited

     (13,750 )    $ 0.92  
   

 

 

          

Non-vested at March 31, 2012

     778,499     $ 0.84  
   

 

 

          

As of March 31, 2012, the Company had approximately $258 of unrecognized compensation expense related to stock options that will be recognized over a weighted-average period of approximately 2.1 years.