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Note 4 - Stock-Based Compensation
 9 Months Ended
Sep. 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 nine 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 $0 and $7,126 for each of the quarters ended September 30, 2012 and 2011, respectively, and $10,000 and $33,156 for each of the nine month periods ended September 30, 2012 and 2011, respectively, as a component of operating expenses.

During the nine months ended September 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
    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  
                                 
Outstanding, January 1, 2012
  $ 4.40       115,600                  
Granted
    5.27       12,000                  
Cancelled
    -       -                  
Exercised
    2.72       (2,000 )                
Outstanding, September 30, 2012
  $ 4.51       125,600       4.93     $ 213,256  
Exercisable, September 30, 2012
  $ 4.51       125,600       4.93     $ 213,256  

Other information pertaining to option activity during the nine-month periods ended September 30, 2012 and 2011 are as follows:

   
September 30, 2012
   
September 30, 2011
 
Weighted average grant-date fair value of stock options granted
  $ 0.83     $ 1.19  
Total fair value of stock options vested
  $ 10,000     $ 52,057  
Total intrinsic value of stock options exercised
  $ 3,077       N/A  

As of September 30, 2012 and 2011, there was no unrecognized compensation cost related to non-vested stock options.