XML 42 R14.htm IDEA: XBRL DOCUMENT

Note 7 Stock Compensation

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Note 7 Stock Compensation

NOTE 7 – STOCK BASED COMPENSATION

The Company uses the Black-Scholes option pricing model to calculate the grant-date fair value of an award, with the following assumptions for 2012 and 2011: no dividend yield in both years, expected volatility, based on the Company’s historical volatility, between 115% and 118% in 2012 and between 119% and 125% in 2011, risk-free interest rate between 0.69% and 2.26% in 2012 and between 0.96% and 2.15% in 2011 and expected option life of five to ten years in 2012 and three to five years in 2011.

As of June 30, 2012, there was $1,248,136 of unrecognized compensation expense related to non-vested market-based share awards that is expected to be recognized through June 2015.

The following tables summarize all stock option and warrant activity of the Company since December 31, 2004:

		Non-Qualified Stock Options and Warrants Outstanding and Exercisable

		Number of		Exercise		Weighted Average
		Shares		Price		Exercise Price
Outstanding, December 31, 2004		-		$ -		$ -

Granted		680,000		$ 0.25 - $2.10		$ 0.99
Exercised		(300,000)		$ 0.25		$ 0.25

Outstanding, December 31, 2005		380,000		$1.40 - $2.10		$ 0.68

Granted		1,425,000		$0.25 - $1.00		$ 0.70
Cancelled		(260,000)		$1.40 - $2.10		$ (0.48)
Expired		(70,000)		$1.40 - $2.00		$ (0.12)

Outstanding, December 31, 2006		1,475,000		$0.25 - $2.00		$ 0.83

Granted		5,768,971		$0.25 - $0.72		$ 0.48
Rescinded		(200,000)		$ 0.50		$ 0.50
Forfeited		(125,019)		$ 1.00		$ 1.00
Expired		(574,981)		$ 1.00		$ 1.00

Outstanding, December 31, 2007		6,343,971		$0.25 - $2.00		$ 0.48

Granted		3,495,001		$0.001 - $1.75		$ 1.16
Expired		(115,000)		$0.50 - $2.00		$ 0.07
Forfeited		(750,000)		$ 0.72		$ 0.72
Exercised		(807,770)		$0.25 - $0.50		$ 0.53

Outstanding, December 31, 2008		8,166,202		$0.001 - $1.75		$ 0.79

Granted		939,000		$0.25 - $0.45		$ 0.30
Expired		(1,204,451)		$0.25 - $1.00		$ 0.61
Forfeited		-
Exercised		(1,488,384)		$0.001 - $1.00		$ 0.20

Outstanding, December 31, 2009		6,412,367		$0.25 - $1.75		$ 0.83

Granted		1,860,000		$0.25 - $1.51		$ 1.20
Expired		(16,667)		$ 1.00		$ 1.00
Forfeited		-		-		-
Exercised		(1,279,700)		$0.25 - $1.00		$ 0.42

Outstanding, December 31, 2010		6,976,000		$0.25 - $1.75		$ 1.00

Granted		2,085,000		$0.63 - $1.30		$ 1.09
Expired		-		-		-
Forfeited		(162,500)		$ 1.51		$ 1.51
Exercised		-		-		-

Outstanding, December 31, 2011		8,898,500		$0.25 - $1.75		$ 1.01

Granted		935,000		$0.90 - $1.69		$ 1.26
Voided		(25,000)		$ 1.25		$ 1.25
Expired		-		-		-
Forfeited		-		-		-
Exercised		(1,210,000)		$0.25 - $1.25		$ 0.37

Outstanding, June 30, 2012		8,598,500		$0.25 - $1.75		$ 1.13

Exercisable, June 30, 2012		7,162,442		$0.25 - $1.75		$ 1.13

Non-Qualified Stock Options and Warrants Outstanding
		Number Outstanding		Weighted Average		Weighted Average
Range of		Currently Exercisable		Remaining		Exercise Price of Options and
Exercise Prices		at June 30, 2012		Contractual Life		Warrants Currently Exercisable

$0.25 - $1.75		7,162,442		2.42 Years		$ 1.13

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References+ Details