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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2011
Stock-Based Compensation

 

NOTE 8 — Stock-Based Compensation

 

The Company recognizes stock-based compensation in the financial statements for all share-based awards to employees, including grants of employee stock options, based on their fair values. The Company uses a binomial lattice valuation model to estimate the fair value of stock option grants. The binomial lattice model incorporates calculations for expected volatility, risk-free interest rates, employee exercise patterns and post-vesting employment termination behavior, and these factors affect the estimate of the fair value of the Company's stock option grants. Total stock-based compensation expense for the three and six months ended June 30, 2011 was $181,658 and $360,161. Total stock-based compensation expense for the three and six months ended June 30, 2010 was $154,903 and $320,143.

 

In the three and six months ended June 30, 2011, 47,200 and 254,650 stock options were granted, respectively, at weighted average per share fair values estimated at $1.13 and $1.06, respectively. In the three and six months ended June 30, 2010, 139,000 and 144,000 stock options were granted, respectively, at weighted average per share fair values estimated at $1.96 and $1.97, respectively. At June 30, 2011, options issued to employees for 1,416,493 shares were outstanding, of which options for 622,684 shares were exercisable. As of June 30, 2011, the total remaining unrecognized compensation costs related to unvested stock options was approximately $1.05 million, which will be amortized over the weighted average remaining requisite period of 1.9 years.