Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation (Tables)

Basis of Presentation (Tables)

3 Months Ended

Jun. 30, 2012

The changes in the fair value of warrants is as follows:

	Three Months Ended
	June 30,
	2012			2011
Balance at the beginning of the period	$	19		$	26
Change in fair value recorded in earnings		(1	)		(12	)
Balance at the end of the period	$	18		$	14

Valuation assumptions to estimate the fair value of options

The Company utilized the following valuation assumptions to estimate the fair value of options that would have been granted for the three month periods ended June 30, 2012 and 2011, respectively. Some 7,500 options were granted in the three month period ended June 30, 2012. The valuation assumptions are included for comparison only.

STOCK OPTIONS:	2012			2011
Expected life (years)		6.0			6.0
Volatility		10	%		77	%
Risk-free interest rate		0.69	%		1.76	%
Dividend yield		0	%		0	%

Valuation assumptions to estimate the fair value of ESPP

ESPP awards are valued using the Black-Scholes pricing model with expected volatility calculated using a six-month historical volatility. No ESPP awards were made in the three month period ended June 30, 2012. The valuation assumptions are included for comparison only.

ESPP:	2012			2011
Expected life (years)		0.5			0.5
Volatility		6	%		43	%
Risk-free interest rate		0.09	%		0.03	%
Dividend yield		0	%		0	%

Stock option and warrant activity

A summary of the stock option and warrant activity during the quarter ended June 30, 2012 is as follows:

					Weighted
			Weighted		Average
			Average		Remaining		Aggregate
			Exercise		Contractual		Intrinsic
	Shares		Price		Term (in Years)		Value
Beginning outstanding		127,833	$	19.24
Granted		7,500	$	3.60
Expired		-	$	-

Ending outstanding		135,333	$	18.38		5.86	$	-
Ending vested and expected to vest		135,264	$	19.52		5.86	$	-
Ending exercisable		122,491	$	19.52		5.60	$	-

Stock options and warrants outstanding

The following table summarizes information with respect to stock options and warrants outstanding as of June 30, 2012:

												Weighted
						Weighted						Average
				Number		Average				Number		Exercise
				Outstanding		Remaining		Weighted		Exercisable		Price
				As of		Contractual		Average		As of		As of
Range of				June 30,		Term		Exercise		June 30,		June 30,
Exercise Prices				2012		(in years)		Price		2012		2012
$	2.90	$	6.00		15,830		9.28	$	4.32		8,555	$	4.32
	6.25		11.70		54,435		6.39		11.51		48,937		11.51
	17.80		28.10		49,648		5.15		21.73		49,623		21.73
	30.56		61.80		14,506		2.83		43.48		14,498		43.48
	61.94		151.94		854		2.17		89.52		832		89.52
	152.21		285.00		58		1.14		174.00		46		174.00
	286.72		300.27		2		0.00		293.50		-		-

$	2.90	$	300.27		135,333		5.86	$	19.52		122,491	$	19.52

Unvested RSU activity

The following table summarizes the Company's unvested RSU activity for the three months ended June 30, 2012:

	Number			Weighted Average
	of			Grant Date
	Shares			Fair Value
Balance March 31, 2012		236,541		$	2.11
Granted		39,000		$	3.40
Forfeited		-		$	-
Vested		(37,247	)	$	1.79
Balance, June 30, 2012		238,294		$	2.37

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References + Details

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

+ References + Details