Note 12 - Stock Options and Stock Purchase Warrants

12 Months Ended

Dec. 31, 2012

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

Note 12.  Stock Options and Stock Purchase Warrants

The Company previously adopted the 1996 Employee Comprehensive Stock Plan (“Comprehensive Plan”) and the 1996 Non-Employee Director Plan (“Director Plan”) under which officers and employees, and non-employee directors, respectively, of the Company and its affiliates were eligible to receive stock option grants.  Employees of the Company were also eligible to receive restricted stock grants under the Comprehensive Plan.  The Company previously reserved 14,500,000 and 1,300,000 shares of its Common Stock for issuance pursuant to the Comprehensive Plan and the Director Plan, respectively.  The Comprehensive Plan and the Director Plan expired on July 10, 2006.  The expiration of the plans preclude the Company from granting new options under each plan but will not affect outstanding option grants which shall expire in accordance with their terms.

During the year ended December 31, 2011, the Company adopted the 2011 Incentive Plan under which directors, officers, consultants, advisors and employees of the Company are eligible to receive stock option grants. The Company has reserved 6,000,000 shares of its Common Stock for issuance pursuant to the 2011 Incentive Plan. Under the 2011 Incentive Plan, options vest and expire pursuant to individual award agreements; however, the expiration date of unexercised options may not exceed ten years from the date of grant. In May, 2011, the Company issued to a former employee an option grant for 2,000,000 shares of its Common Stock with an exercise price of $0.21 per share, a five year vesting schedule (vesting in equal increments in years three, four and five) and a ten year term. In connection with this option grant, the Company recognized compensation expense of approximately $61,000 during the year ended December 31, 2011. Subsequent to December 31, 2011, this option grant terminated as a result of the termination of employment of the option holder.

During September, 2012, the Company issued to the new Chief Executive Officer, Alex Vaickus, an option grant of 2,000,000 shares of its Common Stock with an exercise price of $0.117, a five year vesting schedule (vesting in equal annual increments beginning on the first anniversary of the date of the grant) and a ten year term. In connection with this grant of options, the Company recognized compensation expense of approximately $68,000 during the year ended December 31, 2012. The option grant was issued under the 2011 Incentive Plan. As the Company's Chief Executive Officer Mr. Vaickus replaced Mark Schwarz, who will remain as Chairman of the Board of Directors of the Company and added the title of Executive Chairman. Mr. Vaickus, age 53, served as President of Playboy Enterprises Inc. ("PEI") from 2009 to 2011. Mr. Vaickus served as President of PEI's Global Licensing Group from 2000 to 2011.   

Option activity for the years ended December 31, 2012 and 2011, is summarized as follows:

	Number of Shares			Weighted Average Exercise Price
Outstanding, January 1, 2011		150,000		$	0.28
Granted		2,000,000			0.21
Canceled		(100,000	)		0.28
Outstanding, December 31, 2011		2,050,000		$	0.21
Granted		2,000,000			0.12
Canceled		(2,000,000	)		0.21
Outstanding, December 31, 2012		2,050,000		$	0.12

At December 31, 2012 and 2011, stock options to purchase an aggregate of 50,000 shares, were exercisable and had a weighted average exercise price of $0.28 per share.

Stock options outstanding and exercisable at December 31, 2012, were as follows:

	Options Outstanding			Options Exercisable
	Weighted Average
Range of Exercise Prices	Number Outstanding	Remaining Life (years)	Remaining Average Exercise Price	Weighted Number Exercisable	Weighted Average Exercise Price
$0.12-0.28	2,050,000	9.2	$0.12	50,000	$0.28