SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2014

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

NOTE 13 - SUBSEQUENT EVENTS:

On July 14, 2014, the Company appointed a COO. In connection to his appointment, the Company granted the COO stock options to purchase 450,000 shares of the Company's common stock and 150,000 shares of restricted stock. Both the options and the restricted stock are subject to a three-year vesting period subject to the COO's continued service with the Company, with one-third (1/3rd) of such awards vesting on the first, second and third anniversary of the grant date.

The options have an exercise price of $2.61 per share, which was the fair market value of the Company's common stock on the date of grant. In calculating the fair value of the above options the Company used the following assumptions: dividend yield of 0% and expected term of 5.5-6.5 years; expected volatility of 63.8%-66.7%; and risk-free interest rate of 1.80%-2.05%.

The fair value of the above options, using the Black-Scholes option-pricing model, was approximately $700,000.

The fair value of the above restricted shares was approximately $400,000.