5. EQUITY COMPENSATION

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

5. EQUITY COMPENSATION

5. EQUITY COMPENSATION

The following is a summary of the stock option activity for the three-months ended June 30, 2013:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic value
Outstanding, December 31, 2012		450,900		$	2.02
Cancelled		(19,900	)		1.08
Issued		18,000			1.40
Outstanding, June 30, 2013		449,000		$	2.03		6.9		46,700
Vested and exercisable, June 30, 2013		280,500		$	2.42		5.8		36,800

Aggregate intrinsic value represents the difference between the closing stock price at June 30, 2013 of the Company's Common Stock and the exercise price of outstanding, in-the-money options. The Company's closing stock price as reported on the OTCBB as of June 30, 2013 was $1.40.

At June 30, 2013, there remains $144,018 of unvested expense yet to be recorded related to all options outstanding.