STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2015

STOCK- BASED COMPENSATION [Abstract]

Schedule for components of stock based compensation

The following table summarizes the components of the Company’s stock-based compensation included in net loss:

	Three Months Ended March 31,
	2015		2014
Employee stock options	$	186,471	$	182,724
Restricted stock awards		176,523		193,787
Consultant stock options		16,245		-
Income tax benefit		-		(67,697	)
Totals	$	379,239	$	308,814

Summary of the stock option activity

The following is a summary of the stock option activity for the three months ended March 31, 2015:

	Shares			Weighted Average Exercise Price
Outstanding, December 31, 2014		1,665,946		$	2.93
Granted		376,500		$	1.39
Exercised		(50,000	)	$	1.20
Forfeited		(34,684	)	$	4.67
Expired		(9,843	)	$	7.24
Outstanding, March 31, 2015		1,947,919		$	2.63

Weighted average assumptions for stock options granted

The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton option pricing model with the following weighted average assumptions for stock options granted during the three months ended March 31, 2015:

Dividend yield	0.0	%
Expected volatility	72.4	%
Risk-free interest rate	1.61	%
Expected lives (years)	5.75

Information about stock options outstanding

The following table summarizes information about stock options outstanding at March 31, 2015:

Options Outstanding					Options Exercisable						Options Vested or Expected to Vest
Balance as of 3/31/2015	Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Balance as of 3/31/2015		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Balance as of 3/31/2015		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price
1,947,919		7.61	$	2.63		1,135,660		6.43	$	2.69		1,852,134		7.51	$	2.64

Restricted stock activity

The following is a summary of the restricted stock activity for the three months ended March 31, 2015:

	Shares			Weighted Average Grant Date Fair Value
Unvested, December 31, 2014		287,006		$	3.29
Granted		122,500		$	1.28
Vested		(62,247	)	$	2.53
Canceled		-		$	-
Unvested, March 31, 2015		347,259		$	2.71