2.4.0.8116 - Disclosure - SHARE-BASED COMPENSATIONtruefalsefalse1false falsefalseP01_01_2013To06_30_2013http://www.sec.gov/CIK0001308027duration2013-01-01T00:00:002013-06-30T00:00:001true 1us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]2false 2us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1falsefalsefalse00 <table border="0" style="clear:both;width:100%; table-layout:fixed;"> <tr> <td></td> </tr> </table> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"> <table style="clear:both;MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: left; WIDTH: 0.75in"> <div><strong>NOTE 10</strong></div> </td> <td style="TEXT-ALIGN: justify"> <div><strong>SHARE-BASED COMPENSATION</strong></div> </td> </tr> </table> </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Generally accepted accounting principles require share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values at the date of grant, net of estimated forfeitures.</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <strong>Options</strong></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company used the Black-Scholes option pricing model to estimate the grant-date fair value of awards granted.   The following assumptions were used for option awards during the six months ended June 30, 2013. There were no option awards granted during the six months ended June 30, 2012:</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <table style="clear:both;MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 38.4pt"></td> <td style="WIDTH: 18pt"> <div>•</div> </td> <td style="TEXT-ALIGN: justify"> <div>Expected Dividend Yield  because we do not currently pay dividends, the expected dividend yield is zero;</div> </td> </tr> </table> <table style="clear:both;MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"></td> <td style="WIDTH: 0.25in"> <div>•</div> </td> <td style="TEXT-ALIGN: justify"> <div>Expected Volatility in Stock Price  volatility based our own trading activity was used to determine expected volatility;</div> </td> </tr> </table> <table style="clear:both;MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"></td> <td style="WIDTH: 0.25in"> <div>•</div> </td> <td style="TEXT-ALIGN: justify"> <div>Risk-free Interest Rate  reflects the average rate on a United States Treasury bond with maturity equal to the expected term of the option; and</div> </td> </tr> </table> <table style="clear:both;MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"></td> <td style="WIDTH: 0.25in"> <div>•</div> </td> <td style="TEXT-ALIGN: justify"> <div>Expected Life of Awards  because we have minimal experience with the exercise of options or warrants for use in determining the expected life for each award, we used the option’s contractual term as the expected life.</div> </td> </tr> </table> </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The weighted-average assumptions used in the option pricing model for stock option grants were as follows for the six months ended June 30, 2013:</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <table style="clear:both;WIDTH: 90%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify; WIDTH: 72%"> <div> </div> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; WIDTH: 28%"> <div>2013</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify"> <div>Expected Dividend Yield</div> </td> <td style="TEXT-ALIGN: center"> <div>0.00%</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify"> <div>Expected Volatility of Stock Price</div> </td> <td style="TEXT-ALIGN: center"> <div>119.9%</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify"> <div>Risk-Free Interest Rate</div> </td> <td style="TEXT-ALIGN: center"> <div>1.86%</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify"> <div>Expected Life</div> </td> <td style="TEXT-ALIGN: center"> <div>10 years</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify"> <div>Weighted Average Fair Value at Grant Date</div> </td> <td style="TEXT-ALIGN: center"> <div>$0.15/share</div> </td> </tr> </table> </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> In total, the Company recorded $157,784 and $86,618 of stock-based compensation expense for the three month periods ended June 30, 2013 and 2012, respectively and $313,789 and $277,239 of stock-based compensation expense for the six month periods ended June 30, 2013 and 2012, respectively, related to employee and board member stock options and stock and warrants issued to nonemployees.  As of June 30, 2013, $483,436 of unrecognized compensation expense related to non-vested share-based awards remains to be recognized over a period of approximately 3 years.</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> During 2004, the Board of Directors of the Company adopted a stock option plan (the “Plan”) and authorized up to 4,000,000 shares to be issued under the Plan.  In April 2009, the Company’s Board of Directors authorized an increase in the number of shares to be issued under the Plan to 10,000,000 shares, which was also approved by the Company’s shareholders, and to include the independent Board members in the plan in lieu of continuing the previous practice of granting warrants each quarter to independent board members for services.  At June 30, 2013, there were 2,261,650 shares of common stock reserved for issuance under the Plan.  The Plan is intended to permit stock options granted to employees to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended (“Incentive Stock Options”).  All options granted under the Plan that are not intended to qualify as Incentive Stock Options are deemed to be non-qualified options.  Stock options are typically granted at an exercise price equal to the fair market value of the Company’s common stock on the date of grant, typically vest over periods up to 4 years and are typically exercisable up to 10 years.</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The following table summarizes all stock option activity of the Company for the six months ended June 30, 2013:</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <table style="clear:both;WIDTH: 95%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; TEXT-ALIGN: center" colspan="2" > <div>Number of</div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; TEXT-ALIGN: center" colspan="2" > <div>Weighted<br/> Average</div> </td> <td style="white-space:nowrap;"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" > <div>Options</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" > <div>Exercise Price</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td> <div> </div> </td> <td> <div> </div> </td> <td colspan="2"> <div> </div> </td> <td> <div> </div> </td> <td> <div> </div> </td> <td colspan="2"> <div> </div> </td> <td> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="WIDTH: 74%"> <div>Outstanding, December 31, 2012</div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> <div>6,867,500</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> <div>0.66</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td> <div>Granted</div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>1,250,000</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div>$</div> </td> <td style="TEXT-ALIGN: right"> <div>0.15</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt"> <div>Forfeited</div> </td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>379,150</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>$</div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 1pt"> <div>0.59</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 2.5pt"> <div>Outstanding, June 30, 2013</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>7,738,350</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>$</div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2.5pt"> <div>0.57</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 2.5pt"> <div>Exercisable, June 30, 2013</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>5,671,600</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>$</div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2.5pt"> <div>0.63</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> </tr> </table> </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <strong>Warrants</strong></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Warrants are issued to third parties as payment for services and in conjunction with the issuance of common stock.  The fair value of each common stock warrant issued for services is estimated on the date of grant using the Black-Scholes option pricing model.  The following weighted average assumptions were used for warrants granted for the six months ended June 30:</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"> <table style="clear:both;WIDTH: 90%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" > <div>2013</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" > <div>2012</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left"> <div>Expected Dividend Yield</div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>-</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>-</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; WIDTH: 74%"> <div>Expected Volatility in Stock Price</div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> <div>123.9</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div>%</div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> <div>31.57</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div>%</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left"> <div>Risk-Free Interest Rate</div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>1.47</div> </td> <td style="TEXT-ALIGN: left"> <div>%</div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>0.78</div> </td> <td style="TEXT-ALIGN: left"> <div>%</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left"> <div>Expected Life of Awards, Years</div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>6.83</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>4.5</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> </table> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The following table represents the Company’s warrant activity for the six months ended June 30, 2013:</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"> <table style="clear:both;WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; TEXT-ALIGN: center" colspan="2" > <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; TEXT-ALIGN: center" colspan="2" > <div>Weighted Average</div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; TEXT-ALIGN: center" colspan="2" > <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; TEXT-ALIGN: center" colspan="2" > <div>Weighted Average</div> </td> <td style="white-space:nowrap;"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; TEXT-ALIGN: center" colspan="2" > <div>Number of</div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; TEXT-ALIGN: center" colspan="2" > <div>Grant Date</div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; TEXT-ALIGN: center" colspan="2" > <div>Weighted Average</div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; TEXT-ALIGN: center" colspan="2" > <div>Remaining</div> </td> <td style="white-space:nowrap;"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" > <div>Warrants</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" > <div>Fair Value</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" > <div>Exercise Price</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" > <div>Contractual Life (Years)</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt" > <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: center" colspan="2"> <div> </div> </td> <td> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: center" colspan="2"> <div> </div> </td> <td> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: center" colspan="2"> <div> </div> </td> <td> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: center" colspan="2"> <div> </div> </td> <td> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="WIDTH: 40%"> <div>Outstanding, December 31, 2012</div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> <div>12,857,926</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"></td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> <div>0.41</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: right; WIDTH: 18%"> <div>7.28</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td> <div>Granted</div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>315,689</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div>$</div> </td> <td style="TEXT-ALIGN: right"> <div>0.12</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div>$</div> </td> <td style="TEXT-ALIGN: right"> <div>0.06</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td> <div>Exercised</div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>-</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div>$</div> </td> <td style="TEXT-ALIGN: right"></td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div>$</div> </td> <td style="TEXT-ALIGN: right"></td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt"> <div>Expired/Forfeited</div> </td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"></td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>(1,318,263</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>)</div> </td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>$</div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>$</div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 1pt"> <div>1.06</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"></td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 2.5pt"> <div>Outstanding, June 30, 2013</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>11,855,352</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>$</div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2.5pt"> <div>0.22</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2.5pt"> <div>7.56</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 2.5pt"> <div>Exercisable, June 30, 2013</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>11,805,352</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>$</div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2.5pt"> <div>0.22</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2.5pt"> <div>7.55</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> </tr> </table> </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">  </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">   </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company issued 195,689 warrants for services during the six months ended June 30, 2013 at exercise prices ranging from $0.05 to $0.23 per share, exercisable over 10 years from the grant date.  All of the warrants vested immediately.  The fair value of the warrants was calculated as of the date of the grant utilizing the Black-Scholes option pricing model and assumptions as detailed above.  The total amount of the fair value was $20,060 and was recorded as noncash share-based compensation expense when vesting occurred. The Company also issued 20,000 warrants associated with a private placement offering of the Company’s common stock at an exercise price of $0.35. The fair value of the private placement warrants was $3,502. In addition, the Company issued 100,000 warrants associated with a private placement offering of the Company’s Shareholder Notes at an exercise price of $0.10 and a fair value of $1,930.</div> </div> falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 false0Disclosure Of Compensation Related Costs, Share Based Payments [Text Block]falseSHARE-BASED COMPENSATIONUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.vytex.com/role/SharebasedCompensation12