Stock Options and Award Programs

9 Months Ended

Sep. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

9. Stock Options and Award Programs

The Company’s stock incentive plan is administered by the Compensation Committee and authorizes the grant or award of incentive stock options, non-qualified stock options, restricted stock awards, stock appreciation rights, dividend equivalent rights, performance unit awards and phantom shares. The Company issues new shares of common stock upon the exercise of stock options. Any shares associated with options forfeited during the reporting period were added back to the number of shares that underlie stock options to be granted under the stock incentive plan.

A summary of the stock option and restricted stock award activity under our plans during the nine months ended September 30, 2012 is set forth below:

			Weighted
			Average Grant
	# of		Date Fair Value
NON-VESTED OPTIONS	Shares		per Share
Non-vested balances, January 1, 2012		840,000	$	0.70
Granted		400,000	$	0.43
Non-vested balances, September 30, 2012		1,240,000	$	0.61

				Weighted
				Average
	# of			Exercise Price
OUTSTANDING AND EXERCISABLE	Shares			per Share
Outstanding balances, January 1, 2012		3,362,000		$	0.64
Issued		400,000		$	0.69
Canceled		(25,000	)	$	0.54
Exercised		(425,000	)	$	0.07
Outstanding balances, September 30, 2012		3,312,000		$	0.72
Outstanding and exercisable balances, September 30, 2012		2,072,000		$	0.59

The aggregate remaining contractual lives in years for all options outstanding and the portion of such outstanding options that are exercisable on September 30, 2012 were 2.89 and 1.94, respectively. In comparison, the aggregate remaining contractual lives in years for the options that were outstanding and exercisable on September 30, 2011, were 3.32 and 2.56, respectively.

Aggregate intrinsic value represents total pretax intrinsic value (the difference between WidePoint’s closing stock price on September 30, 2012, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2012. The intrinsic value will change based on the fair market value of WidePoint’s stock. The total intrinsic values of all options that were outstanding and exercisable as of September 30, 2012, were $45,750, respectively.

Share based compensation represents both stock options based expense and stock grant expense. The following table sets forth share-based compensation expense of for the periods then ended:

	THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 30,				SEPTEMBER 30,
	2012		2011		2012		2011
	(Unaudited)				(Unaudited)
General and administrative expense	$	55,593	$	69,920	$	165,873	$	109,857
Share-based compensation before taxes	$	55,593	$	69,920	$	165,873	$	109,857
Tot net share-based compensation expense	$	55,593	$	69,920	$	165,873	$	109,857
Net share-based compensation expenses per basic and
diluted common share		nil		nil		nil		nil

Included in share-based compensation in the three and nine month period ended September 30, 2011, respectively, was the benefit realized as a result of forfeitures of granted unvested stock options which were cancelled during that period. The resulting benefit occurred as the value attributed to the forfeited shares were greater than the sum of the stock options based compensation recognized during the respective periods. There were no such forfeitures in the nine month period September 30, 2012, that would have had a similar benefit.

At September 30, 2012, the Company had approximately $374,540 of total unamortized compensation expense, net of estimated forfeitures, related to stock option plans that will be recognized over the weighted average remaining period of 2.83 years.