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STOCK OPTIONS AND WARRANTS | 12 Months Ended
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Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Note 15. STOCK OPTIONS AND WARRANTS | Stock-Based Compensation During 2005, the Company's Board of Directors approved a stock option plan and reserved 25,000 shares of its Common Stock for issuance under the plan. The stock option plan permits the Company to grant non-qualified and incentive stock options to employees, directors, and consultants. During the years ended December 31, 2012 and 2011, the Board of Directors approved the issuance of 21,000 and 15,000 options, respectively, to the non-employee members of the Company’s Board of Directors. These options vested immediately. The Company recorded expenses of $101,000 and $131,000 in its consolidated statement of operations for the years ended December 31, 2012 and 2011, respectively, and such amounts were included as a component of general and administrative expense. The fair values of stock options granted were estimated using the Black-Sholes option-pricing model with the following assumptions for the years ended December 31:
|  | 2012 |  |  | 2011 |
Risk-free interest rates |  |  | 0.66 - 0.73 | % |  |  | 1.80 | %
Expected life |  |  | 5 |  |  |  | 5 |
Expected volatility |  |  | 25 | % |  |  | 25 | %
Dividend yield |  |  | - |  |  |  | - |
Weighted-average grant date fair value per share |  | $ | 1.31 |  |  | $ | 0.76 |
The expected life is the number of years that the Company estimates, based upon history, that options will be outstanding prior to exercise or forfeiture. Expected life is determined using the “simplified method” permitted by Staff Accounting Bulletin No. 107. In addition to the inputs referenced above regarding the option pricing model, the Company adjusts the stock-based compensation expense for estimated forfeiture rates that are revised prospectively according to forfeiture experience. The stock volatility factor is based on the New York Stock Exchange ARCA Defense Index. A summary of the status of the Company's stock options as of December 31, 2012, and changes during the two years then ended is presented below.
|  | Options |  |  | Wtd. Avg. Exercise Price |
Balance, December 31, 2010 |  |  | 291,431 |  |  | $ | 10.68 |
Granted during the period |  |  | 15,000 |  |  |  | 2.95 |
Exercised during the period |  |  | - |  |  |  | - |
Terminated/Expired during the period |  |  | (115 | ) |  |  | (105.39 | )
Balance, December 31, 2011 |  |  | 306,316 |  |  | $ | 10.27 |
Granted during the period |  |  | 21,000 |  |  |  | 5.61 |
Exercised during the period |  |  | - |  |  |  | - |
Terminated/Expired during the period |  |  | - |  |  |  | - |
Balance, December 31, 2012 |  |  | 327,316 |  |  | $ | 9.97 |
Exercisable at December 31, 2012 |  |  | 326,736 |  |  | $ | 10.00 |
The following table summarizes information about stock options at December 31, 2012:
Range of Exercise Prices |  | Remaining Number Outstanding |  | Wtd. Avg. Life |  | Wtd. Avg. Exercise Price |
$0.00 - 5.00 |  |  | 293,766 |  | 3 years |  | $ | 4.41 |
$5.01 - 90.00 |  |  | 19,350 |  | 5 years |  | $ | 11.72 |
$90.01 - 100.00 |  |  | 5,888 |  | 2 years |  | $ | 92.18 |
$100.01 - 110.00 |  |  | 833 |  | 1 years |  | $ | 108.00 |
$110.01 - 170.00 |  |  | 3,529 |  | 1 years |  | $ | 111.89 |
$170.01 - 200.00 |  |  | 3,950 |  | 2 years |  | $ | 181.00 |
|  |  | 327,316 |  | 3 years |  | $ | 9.97 |
As of December 31, 2012, there was $357 of unrecognized compensation cost related to non-vested stock option awards, which is to be recognized over the remaining weighted average vesting period of four years. The aggregate intrinsic value at December 31, 2012 was $0. The aggregate intrinsic value was calculated based on the positive difference between the closing market price of the Company’s Common Stock and the exercise price of the underlying options. Warrants The following tables summarize the Company's outstanding warrants as of December 31, 2012 and changes during the two years then ended:
|  | Warrants |  |  | Wtd. Avg. Exercise Price |
Balance, December 31, 2010 |  |  | 19,865 |  |  | $ | 99.26 |
Granted during the period |  |  | - |  |  |  | - |
Exercised during the period |  |  | - |  |  |  | - |
Terminated/Expired during the period |  |  | - |  |  |  | - |
Balance, December 31, 2011 |  |  | 19,865 |  |  | $ | 99.26 |
Granted during the period |  |  | 118,585 |  |  |  | 6.30 |
Exercised during the period |  |  | - |  |  |  | - |
Terminated/Expired during the period |  |  | (19,615 | ) |  |  | 99.97 |
Balance, December 31, 2012 |  |  | 118,835 |  |  | $ | 6.38 |
Exercisable at December 31, 2012 |  |  | 118,835 |  |  | $ | 6.38 |
The following table summarizes information about warrants at December 31, 2012:
Range of Exercise Prices |  | Warrants |  | Wtd. Avg. Life |  | Wtd. Avg. Exercise Price |
$ 0.00 - 10.00 |  |  | 118,585 |  | 4 years |  | $ | 6.30 |
$ 10.00 - 50.00 |  |  | 250 |  | 1 year |  | $ | 43.60 |
|  |  | 118,835 |  | 1 year |  | $ | 6.38 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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