Annual report pursuant to section 13 and 15(d)

Shareholders' Equity

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Shareholders' Equity
 12 Months Ended
Dec. 31, 2011
Shareholders' Equity

15.  Shareholders’ Equity

Repurchase Program

In March 2007, the Company’s board of directors authorized the repurchase of up to 2,500,000 shares of the Company’s common stock from time to time on the open market or in privately negotiated transactions, depending on market conditions. In October 2011, the board approved an amendment to the repurchase program to purchase up to an additional 5,000,000 shares. As of December 31, 2011, 2,069,300 shares had been repurchased for $3,246 under the program.

In April 2009, the Company repurchased 4,500,000 shares of common stock at a price of $0.60 per share (an aggregate of $2,700) in a privately-negotiated transaction. This purchase was not made under the Company’s share repurchase program.

Warrants

As of December 31, 2011, outstanding warrants to acquire the Company’s common stock were as follows:

   
Expiration Date   Exercise
Price		   Number of
Shares
2013   $ .95       450,000  
2016     .94       1,417,500  
2016     .96       600,000  
2016     .68       2,300,000  
2016     1.68       10,713,332  
2017     1.91       2,000,000  
             17,480,832  

In April 2010, the Company entered into an agreement with former employees to reduce the exercise price of warrants to purchase 2,300,000 shares of common stock to $0.68 from $0.96 per share. This modification resulted in a charge to non-cash compensation of $243, based on the excess of the fair value of the modified warrant over the fair value of the original warrant immediately before the modification.

In connection with the financing of the Securities America acquisition, in November 2011, the Company issued to the Lenders five-year warrants to purchase 10,713,332 shares of common stock at $1.68 per share (see Note 12).