4. EQUITY COMPENSATION

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

4. EQUITY COMPENSATION

The following is a summary of the stock option activity for the nine months ended September 30, 2014:

					Weighted
			Weighted		Average		Aggregate
	Number of		Average		Remaining		Intrinsic
	Shares		Exercise Price		Contractual Term		Value
Outstanding, December 31, 2013		530,378	$	1.99
Cancelled		(99,708)		4.29
Issued		-		-
Outstanding, September 30, 2014		430,670	$	1.46		4.64	$	11,020
Vested and exercisable, September 30, 2014		215,058	$	1.33		5.34	$	10,540

Aggregate intrinsic value represents the difference between the closing price of the Company’s common stock at September 30, 2014 and the exercise price of outstanding, in-the-money stock options. The closing price of the common stock at September 30, 2014, as reported on the Over-the-Counter Bulletin Board, was $1.22 per share.

At September 30, 2014, $191,898 of unvested expense has yet to be recorded related to outstanding stock options.