3.     STOCK-BASED COMPENSATION

Stock-based compensation expense totaled $20,000 and $23,000 for the three months ended June 30, 2012 and 2013, respectively, and $40,000 and $53,000 for the six months ended June 30, 2012 and 2013, respectively. No tax benefits were attributed to the stock-based compensation because a valuation allowance was maintained for substantially all net deferred tax assets.

The following table summarizes the Company’s restricted stock activity:

As of June 30, 2013, total unrecognized stock-based compensation expense related to non-vested restricted stock was $58,000, which is expected to be recognized over a weighted-average period of 0.7 years.

On August 13, 2012, the Company’s Board of Directors authorized the Company, acting as trustee for certain of its non-officer, overseas employees, to execute a Rule 10b5-1 plan to purchase 100,000 shares of its common stock in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934 and the Company's policies regarding stock transactions.  The employees will receive the stock as incentive compensation in quarterly increments over three years beginning March 15, 2013, provided that they are employees of the Company on the date of the distribution. The following table summarizes this stock award activity:

As of June 30, 2013, total unrecognized stock-based compensation expense related to these stock awards was $81,000, which is expected to be recognized over a weighted-average period of 2.5 years.