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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
Stock-Based Compensation

 

NOTE 6 — 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 months ended March 31, 2012 and 2011 was $177,933 and $178,503, respectively. In the three months ended March 31, 2012 and 2011, 151,300 and 207,450 stock options were granted, respectively, at weighted average per share fair values estimated at $1.30 and $1.04, respectively.