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Stockholders' Equity (Deficit)
 12 Months Ended
Dec. 31, 2011
Stockholders' Equity (Deficit) [Abstract]  
Stockholders' Equity (Deficit)

NOTE 10—STOCKHOLDERS' EQUITY (DEFICIT)

Preferred Stock

The Company's Board has the ability to issue, without approval by the common shareholders, up to 500,000 shares of $1 par value preferred stock having rights and preferences as the Board may determine in its sole discretion.

Common Stock

On November 3, 2008, the Company's Board of Directors authorized the repurchase of up to 1 million shares of its common stock, in open market transactions or through privately negotiated transactions, subject to market conditions and other factors. No purchases were made under the program after 2009 and the Board of Directors terminated the stock repurchase program in February 2011. This stock repurchase is recorded in treasury stock on the consolidated balance sheet.

At December 31, 2011, there are 1,241,125 shares of common stock reserved for future issuance pursuant to the exercise or issuance of stock options.

Comprehensive Income (Loss)

Comprehensive income (loss) is the change in equity of a business enterprise from transactions and other events and circumstances from non-owner sources. Excluding net income (loss), the components of comprehensive income (loss) are from foreign currency translation adjustments and changes in the fair value of hedging instruments.

The following summarizes the components of accumulated other comprehensive loss at December 31, 2011 and 2010:

 

     December 31,  
     2011     2010  

Cumulative translation adjustment

    $ (1,312,000 )   $ (1,345,000 ) 

Change in fair value of interest rate hedge (net of tax) (1)

      (703,000 )     (892,000 ) 
  

 

 

    

 

 

  

Total

    $ (2,015,000 )   $ (2,237,000 ) 
  

 

 

    

 

 

  

(1) Net of deferred income tax asset of $458,000 and $542,000 at December 31, 2011 and 2010, respectively, which have been fully reserved by a valuation allowance at the end of each period.

Stock Options

2005 Omnibus Incentive Plan

Cybex's 2005 Omnibus Incentive Plan (the "Omnibus Plan") is designed to provide incentives that will attract and retain individuals key to the success of the Company through direct or indirect ownership of the Company's common stock. The Omnibus Plan provides for the granting of stock options, stock appreciation rights, stock awards, performance awards and bonus stock purchase awards. The Company reserved 1,000,000 shares of common stock for issuance pursuant to the Omnibus Plan. A registration statement has been filed for the Omnibus Plan and the Company provides newly-issued shares of registered common stock upon the exercise of options and upon stock grants under the Omnibus Plan.

 

The terms and conditions of each award are determined by a committee of the Board of Directors of the Company. Under the Omnibus Plan, the committee may grant either qualified or nonqualified stock options with a term not to exceed ten years from the grant date and at an exercise price per share that the committee may determine (which in the case of incentive stock options may not be less than the fair market value of a share of the Company's common stock on the date of grant). The options generally vest over a three to five year period (with some cliff vesting).

1995 Omnibus Incentive Plan

The terms and conditions of grants of stock options under the 1995 Omnibus Incentive Plan were determined by a committee of the Board of Directors. Options outstanding under this plan were granted at exercise prices which were not less than the fair market value of a share of the Company's common stock on the date of grant and were exercisable over a period not to exceed ten years from the original date of grant. No future grants may be made under this plan.

A summary of the status of the Company's stock option plans as of December 31, 2011 is presented below:

 

     Number
of
Shares		     Weighted
Average
Exercise
Price		      Remaining
Contractual
Term
(years)		      Intrinsic
Value		  

Outstanding at January 1, 2011

      791,125     $ 2.17         

Granted

      —          —           

Exercised

      —          —           

Cancelled/Forfeited

      (158,000 )     1.46         
  

 

 

          

Outstanding at December 31, 2011

      633,125       2.34         4.99       $ —     
  

 

 

    

 

 

     

 

 

     

 

 

  

Options exercisable at December 31, 2011

      475,500     $ 2.72         4.01       $ —     
  

 

 

    

 

 

     

 

 

     

 

 

  

Options vested and expected to vest at December 31, 2011

      624,101     $ 2.36         4.95       $ —     
  

 

 

    

 

 

     

 

 

     

 

 

  

No options were exercised for the years ended December 31, 2011, 2010, and 2009, respectively.

As of December 31, 2011, there was $92,000 of total unrecognized compensation cost related to nonvested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of 1.84 years.

At December 31, 2011, there are 608,000 shares available for future issuance pursuant to the 2005 Omnibus Incentive Plan.

 

Information with respect to options outstanding under the Company's plans as of December 31, 2011 is as follows:

 

     Outstanding      Exercisable  

Range of exercise prices

    Shares      Weighted
average
exercise
price		      Weighted
average
remaining
contractual
life (years)		      Shares      Weighted
average
exercise
price		  

$1.17—$1.51

      428,125       $ 1.22         4.79         276,125       $ 1.25   

  1.81—1.90

      20,000         1.86         3.62         15,000         1.87   

  3.70

      10,000         3.70         2.49         10,000         3.70   

  4.56

      142,500         4.56         6.01         141,875         4.56   

  5.86—7.37

      32,500         7.25         4.90         32,500         7.25   
  

 

 

           

 

 

     
     633,125       $ 2.34         4.99         475,500       $ 2.72   
  

 

 

           

 

 

     

Stock Retainer Plan for Nonemployee Directors

The Company's 2002 Stock Retainer Plan for Nonemployee Directors ("2002 Plan") provided that each nonemployee director received 50% of his annual retainer in shares of common stock of the Company. Up to 150,000 shares of common stock could be issued under the 2002 Plan. The January 2009 issuance of 18,270 shares under the 2002 Plan which related to services performed in 2008, exhausted the authorized shares under the Plan, and the Board of Directors in February 2009 suspended its operation. The issuance of shares as partial payment of annual retainers resulted in expense being recognized based on the fair market value of such shares.