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Note 4 - Stock-Based Compensation
 6 Months Ended
Jun. 30, 2012
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 in each of the first six months of 2012 and 2011.  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 $5,000 and $7,130 for each of the quarters ended June 30, 2012 and 2011, respectively, and $10,000 and $26,030 for each of the six month periods ended June 30, 2012 and 2011, respectively, as a component of operating expenses.

During the six months ended June 30, 2012 and 2011, 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, 2011
  $ 4.35       103,600              
Granted
    1.19       12,000              
Cancelled
    -       -              
Exercised
    -       -              
Outstanding, June 30, 2011
  $ 4.40       115,600       5.37     $ 206,332  
Exercisable, June 30, 2011
  $ 4.35       103,600       5.44     $ 192,075  
                                 
Outstanding, January 1, 2012
  $ 4.40       115,600                  
Granted
    5.27       12,000                  
Cancelled
    -       -                  
Exercised
    -       -                  
Outstanding, June 30, 2012
  $ 4.48       127,600       5.13     $ 216,332  
Exercisable, June 30, 2012
  $ 4.40       115,600       4.69     $ 206,332  

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

   
June 30, 2012
   
June 30, 2011
 
Weighted average grant-date fair value of stock options granted
  $ 10,000     $ 14,257  
Total fair value of stock options vested
    N/A     $ 42,202  
Total intrinsic value of stock options exercised
    N/A       N/A  

As of June 30, 2012 and 2011, unrecognized compensation cost was $0 and $7,129, respectively.