Note 4 - 2012 Stock Option and Stock Award Plan	6 Months Ended
Jun. 30, 2013
Notes
Note 4 - 2012 Stock Option and Stock Award Plan	NOTE 4 – 2012 STOCK OPTION AND STOCK AWARD PLAN During 2012, the Company approved the 2012 Stock Option and Stock Award Plan (“Plan”) established to advance the interest of the Company and its shareholders by providing an incentive to attract, retain and reward persons performing services for the Company and by motivating such persons to contribute to the growth and profitability of the Company. The maximum aggregate number of (i) shares of stock that may be issued under the Plan, and (ii) shares of stock with respect to which stock appreciation rights may be granted is 785,000, and consists of authorized but unissued or reacquired shares of stock or any combination thereof. Such number of shares of stock may be issued under the Plan pursuant to Incentive Stock Options, Non-statutory Stock Options, Restricted Stock Grants, Stock Appreciation Right Grants or any combination thereof, so long as the aggregate number of shares so issued does not exceed such number of shares, as adjusted. The Plan continues in effect until the earlier of its termination by the Board or the date on which all the shares of stock available for issuance under the Plan have been issued and all restrictions on such shares under the terms on the Plan and the agreement evidencing awards granted under the Plan have lapsed. However, all awards shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is adopted by the Board or the date the Plan is duly approved by the Shareholders of the Company. On December 6, 2012, a Form S-8 Registration Statement was filed with the United States Securities and Exchange Commission regarding the Plan. During the six months ended June 30, 2013, the Company granted a stock option to purchase 250,000 shares of the Company’s common stock to a certain key employee. The options covering a total of 125,000 shares will vest one year from the date of grant and options covering a total of 125,000 shares will vest two years from the date of grant and have an estimated fair value of $35,942. The stock options have an exercise price of $1.00 per share and will expire ten (10) years from the date of grant. The fair value of the options was determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.77% (ii) estimated volatility of 17% (iii) dividend yield of 0.00% and (iv) expected life of the options of 5 years. The options vest ratably over the vesting period of two years and stock compensation expense of approximately $8,331 was expensed during the six months ended June 30, 2013. During the six months ended June 30, 2013, the Company granted stock options to purchase a total of 55,000 shares of common stock at an exercise price of $1.50 per share. The options will vest over two years from the date of grant, and will expire ten (10) years from the date of grant and have an estimated fair value of $2,091. The fair value of the options was determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.87% (ii) estimated volatility of 17% (iii) dividend yield of 0.00% and (iv) expected life of the options of 5 years. The options vest ratably over the vesting period of two years and stock compensation expense of $190 was expensed during the six months ended June 30, 2013. Also during the six months ended June 30, 2013, the Company issued 25,000 shares of restricted common stock to an officer of the company. These shares vest one year from the date of grant. The 25,000 restricted shares are estimated to have had a value of $24,000 on the date of grant. The restricted shares vest ratably over the vesting period of one year and stock compensation expense of approximately $9,000 was expensed during the six months ended June 30, 2013. As of June 30, 2013, 455,000 securities had been awarded from the Plan and 20,000 securities had been forfeited with a remaining balance of 350,000 shares.

Note 4 - 2012 Stock Option and Stock Award Plan

6 Months Ended

Jun. 30, 2013

Note 4 - 2012 Stock Option and Stock Award Plan

NOTE 4 – 2012 STOCK OPTION AND STOCK AWARD PLAN

During 2012, the Company approved the 2012 Stock Option and Stock Award Plan (“Plan”) established to advance the interest of the Company and its shareholders by providing an incentive to attract, retain and reward persons performing services for the Company and by motivating such persons to contribute to the growth and profitability of the Company.

The maximum aggregate number of (i) shares of stock that may be issued under the Plan, and (ii) shares of stock with respect to which stock appreciation rights may be granted is 785,000, and consists of authorized but unissued or reacquired shares of stock or any combination thereof. Such number of shares of stock may be issued under the Plan pursuant to Incentive Stock Options, Non-statutory Stock Options, Restricted Stock Grants, Stock Appreciation Right Grants or any combination thereof, so long as the aggregate number of shares so issued does not exceed such number of shares, as adjusted.

The Plan continues in effect until the earlier of its termination by the Board or the date on which all the shares of stock available for issuance under the Plan have been issued and all restrictions on such shares under the terms on the Plan and the agreement evidencing awards granted under the Plan have lapsed. However, all awards shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is adopted by the Board or the date the Plan is duly approved by the Shareholders of the Company. On December 6, 2012, a Form S-8 Registration Statement was filed with the United States Securities and Exchange Commission regarding the Plan.

During the six months ended June 30, 2013, the Company granted a stock option to purchase 250,000 shares of the Company’s common stock to a certain key employee. The options covering a total of 125,000 shares will vest one year from the date of grant and options covering a total of 125,000 shares will vest two years from the date of grant and have an estimated fair value of $35,942. The stock options have an exercise price of $1.00 per share and will expire ten (10) years from the date of grant. The fair value of the options was determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.77% (ii) estimated volatility of 17% (iii) dividend yield of 0.00% and (iv) expected life of the options of 5 years. The options vest ratably over the vesting period of two years and stock compensation expense of approximately $8,331 was expensed during the six months ended June 30, 2013.

During the six months ended June 30, 2013, the Company granted stock options to purchase a total of 55,000 shares of common stock at an exercise price of $1.50 per share. The options will vest over two years from the date of grant, and will expire ten (10) years from the date of grant and have an estimated fair value of $2,091. The fair value of the options was determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.87% (ii) estimated volatility of 17% (iii) dividend yield of 0.00% and (iv) expected life of the options of 5 years. The options vest ratably over the vesting period of two years and stock compensation expense of $190 was expensed during the six months ended June 30, 2013.

Also during the six months ended June 30, 2013, the Company issued 25,000 shares of restricted common stock to an officer of the company. These shares vest one year from the date of grant. The 25,000 restricted shares are estimated to have had a value of $24,000 on the date of grant. The restricted shares vest ratably over the vesting period of one year and stock compensation expense of approximately $9,000 was expensed during the six months ended June 30, 2013.

As of June 30, 2013, 455,000 securities had been awarded from the Plan and 20,000 securities had been forfeited with a remaining balance of 350,000 shares.

- Definition

Disclosure of accounting policy for stock option and stock incentive plans. This disclosure may include (1) the types of stock option or incentive plans sponsored by the entity (2) the groups that participate in (or are covered by) each plan (3) significant plan provisions and (4) how stock compensation is measured, and the methodologies and significant assumptions used to determine that measurement.

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