Note 10 - Stock-based Compensation

6 Months Ended

Jun. 30, 2014

Notes

Note 10 - Stock-based Compensation

NOTE 10 – STOCK-BASED COMPENSATION

We account for stock-based compensation in accordance with ASU Topic 718, Compensation – Stock Compensation.  Under the fair value recognition provisions of this standard, stock-based compensation cost is measured at the grant date based on the estimated value of the award granted, using the Black-Scholes option pricing model, and recognized over the period in which the award vests in general and administrative expenses.  We had no stock-based compensation expense for the three months and six months ended June 30, 2014 and 2013.  Stock-based compensation expense for the three months and six months ended June 30, 2013 was $2,283.

The following table summarizes the stock option activity during the six months ended June 30, 2014:

	Options	Weighted Average Exercise Price	Weighted Average Remaining Contract Term	Aggregate Intrinsic Value
Outstanding at December 31, 2013	5,300,000	$   0.09
Granted	-
Exercised	-
Expired or cancelled	-
Outstanding, vested and exercisable at June 30, 2014	5,300,000	$   0.09	1.70	$60

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on our closing stock price of $0.0043 as of June 30, 2014 which would have been received by the holders of in-the-money options had the option holders exercised their options as of that date.

As of June 30, 2014, there was no future compensation cost related to non-vested stock-based awards not yet recognized in our condensed consolidated statements of operations and comprehensive loss.