5. EQUITY COMPENSATION

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

5. EQUITY COMPENSATION

The following is a summary of the stock option activity for the nine-months period ended September 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		(164,900	)		1.53
Issued		249,370			1.62
Outstanding, September 30, 2013		535,370		$	1.96		5.2		24,300
Vested and exercisable, September 30, 2013		191,750		$	2.76		4.9		17,825

Aggregate intrinsic value represents the difference between the closing stock price at September 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 September 30, 2013 was $1.30.

At September 30, 2013, there remains $329,219 of unvested expense yet to be recorded related to all options outstanding.