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Note 4 - Stock-Based Compensation
6 Months Ended
Jun. 30, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
4.           STOCK-BASED COMPENSATION

We have one stock option plan which provides for annual stock option grants to non-employee directors with an exercise price equal to the fair market value of the shares at the date of grant.  Under this plan, 12,000 options were awarded to directors for each of the nine month periods ended September 30, 2011 and 2010.  These options vest and become exercisable six months from the option grant date.  We had two other stock option plans from 1995 which provided for stock option grants to officers, key employees and non-employee directors.  These plans expired in 2005.  The expiration of the plans has no effect on the options previously granted.  Options outstanding and exercisable were granted at a stock option price which was not less than the fair market value of our common stock as of closing on the date the option was granted and no option has a term in excess of ten years.  We recognized share based compensation expense of $7,126 and $4,402 for each of the quarters ended September 30, 2011 and 2010, respectively, and $33,156 and $22,790 for each of the nine month periods ended September 30, 2011 and 2010, respectively, as a component of operating expenses.

During the nine months ended September 30, 2011 and 2010, the stock option activity under our stock option plans was as follows:

   
Weighted Average
Exercise
Price
   
#
of
shares
   
Weighted Average Remaining Contractual Term (in years)
   
Aggregate
Intrinsic
Value
 
Outstanding, January 1, 2010
  $ 2.33       197,700              
Granted
    5.078       12,000              
Cancelled
    -       -              
Exercised
    1.647       136,700              
Outstanding, September 30, 2010
  $ 4.34       73,000       4.21     $ 154,275  
Exercisable, September 30, 2010
  $ 4.19       61,000       3.13     $ 131,485  
                                 
Outstanding, January 1, 2011
  $ 4.35       103,600                  
Granted
    4.80       12,000                  
Cancelled
    -       -                  
Exercised
    -       -                  
Outstanding, September 30, 2011
  $ 4.40       115,600       5.40     $ 206,332  
Exercisable, September 30, 2011
  $ 4.40       115,600       5.40     $ 206,332  

Other information pertaining to option activity during the nine-month periods ended September 30, 2011 and 2010 are as follows:

   
September 30, 2011
   
September 30, 2010
 
Weighted average grant-date fair value of stock options granted
  $ 1.19     $ 1.90  
Total fair value of stock options vested
  $ 52,057       22,790  
Total intrinsic value of stock options exercised
    N/A     $ 114,603  

As of September 30, 2011 and 2010, there was no unrecognized compensation cost related to non-vested stock options.