STOCK-BASED COMPENSATION EXPENSE

3 Months Ended

Mar. 31, 2015

STOCK-BASED COMPENSATION EXPENSE [Abstract]

STOCK-BASED COMPENSATION EXPENSE

NOTE 4 – STOCK-BASED COMPENSATION EXPENSE

The Company periodically grants options to employees, directors and consultants under the Company’s 2005 Stock Option Plan and the Company’s 2008 Equity Incentive Plan (together, the “Plans”).  The Company is required to make estimates of the fair value of the related instruments and recognize expense over the period benefited, usually the vesting period.

Stock Option Activity

A summary of stock option activity and related information for the three months ended March 31, 2015 is presented below:

	Options		Weighted-Average Exercise Price		Aggregate Intrinsic Value
Outstanding at January 1, 2015		3,392,832	$	3.21
Granted		-		-
Exercised		-		-
Forfeited		-		-
Outstanding at March 31, 2015		3,392,832	$	3.21	$	-
Exercisable at March 31, 2015		2,292,832	$	4.56	$	-

No options were granted or exercised during the three months ended March 31, 2015. During the three months ended March 31, 2015, the Company recognized $19,795 of stock compensation expense attributable to the amortization of unrecognized stock-based compensation.  As of March 31, 2015, total unrecognized stock-based compensation expense related to non-vested stock options was $94,484. The unrecognized expense is expected to be recognized over a weighted average period of 2.19 years and the weighted average remaining contractual term of the outstanding options and exercisable options at March 31, 2015 is 6.54 years and 5.40 years, respectively.

Shares available for issuance under the Plans as of March 31, 2015 totaled 2,607,168 shares.

Restricted Stock Activity

During 2011, the Company granted to officers an aggregate of 45,000 shares of restricted stock, which shares vested over a period of three years.  The fair value of $743,400 was determined based on the fair market value of the shares on the date of grant.  This value was amortized over the vesting period and, during the three months ended March 31, 2015 and 2014, $0 and $20,155 was amortized to expense.  As of March 31, 2015, there was no unrecognized compensation cost related to unvested restricted stock. 

Share-Based Compensation Expense

The following table reflects share-based compensation recorded by the Company for the three months ended March 31, 2015 and 2014:

	Three Months Ended March 31,
	2015				2014
Share-based compensation expense included in general and administrative expense		$	19,795			$	230,010
Earnings per share effect of share-based compensation expense – basic and diluted		$	(0.00	)		$	(0.00	)