STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

NOTE 9 – STOCK-BASED COMPENSATION

In February 2005, the Company adopted the 2005 Equity Incentive Plan and reserved 1,500,000 shares of common stock for future issuance. The plan expired in 2015.

In December 2008, the Company adopted the 2008 Employees and Directors Commitment Stock Option Plan and reserved 1,500,000 shares of common stock for future issuance. The plan expires in 2018.

Under the Company's stock option plans, stock options may be granted to employees, officers, directors and consultants of the Company at an exercise price equivalent to at least the fair market value of the Company's common stock on the date of grant with expiration terms of not more than ten years. Options granted under the plans generally vest over a period of three years.

In September 2009, the Supervisory Board of Directors ratified the cashless exercise feature contained in the Company’s 2005 Equity Incentive Plan. Under the cashless exercise feature of these plans, an option holder electing to exercise stock options using this feature would effectively pay for the exercise of a portion of his stock options by surrendering their rights to another portion of their stock options to affect a stock-for-stock transfer. The Company determined that the modification of the stock option plans did not result in any incremental compensation cost.

During the year ended December 31, 2012, 210,000 options were granted to certain directors, under the Employees and Directors Commitment Stock Option Plan. The weighted average grant date fair value of the stock was $1.05. The Company used the Binominal lattice pricing model to estimate the fair value of the options granted. The Company believes this model provides the best estimate of fair value due to its ability to incorporate inputs that change over time. There were no stock options granted, exercised or forfeited / expired during the years ended December 31, 2015 and 2014.

As of December 31, 2015, the Company has 1,500,000 options available for future grants.

A summary of the Company's stock option activity is as follows:

					Weighted
					Average
			Weighted		Remaining
			Average		Contractual
			Exercise		Term		Intrinsic
	Number		Price		(in years)		Value
Outstanding as of January 1, 2015		150,000	$	1.05		2.33	$	-
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited/Expired		-		-		-		-
Outstanding as of December 31, 2015		150,000	$	1.05		1.33	$	-

As of December 31, 2015 and 2014, the Company does not have unrecognized compensation cost related to stock options granted under the stock option plans.

During the years ended December 31, 2015, 2014 and 2013 the Company recognized compensation expense related to the issuance of stock options under the stock option plans of $0, $14 and $39 respectively.