7. Stock Options Plans (Tables)

12 Months Ended

Dec. 31, 2012

Stock Options, Valuation Assumptions

Assumptions	2009 Stock Option Plan and the 2009 Directors Stock Option Plan
Expected life	2.5 (yrs) - 3.5 (yrs)
Expected volatility	57.53% - 104.86%
Risk-free interest rate	0.37% - 1.92%
Expected dividend yield	0.00%

2009 Stock Option Plan

Stock Option activity

	Number of shares			Weighted average exercise price
Balance as of January 1, 2011		604,000		$	0.53
Granted		400,000		$	0.48
Exercised		––			––
Expired		(34,000	)		0.48
Balance as of December 31, 2011		970,000		$	0.51
Granted		––			––
Exercised		––			––
Expired		––			––
Balance as of December 31, 2012		970,000		$	0.51

Stock Option Plans, by Exercise Price Range

		Options Outstanding						Options Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.53		585,000		1.11	$	0.53		585,000	$	0.53
$	0.48		385,000		3.30	$	0.48		288,750	$	0.48
$	0.48 to 0.53		970,000		1.98	$	0.51		873,750	$	0.51

2009 Director Stock Option Plan

Stock Option activity

	Number of shares		Weighted average exercise price
Balance as of January 1, 2011		90,000		0.40
Granted		60,000		0.36
Exercised		––		––
Expired		––		––
Balance as of December 31, 2011		150,000		0.38
Granted		60,000		0.26
Exercised		––		––
Expired		––		––
Balance as of December 31, 2012		210,000	$	0.35

Stock Option Plans, by Exercise Price Range

		Options Outstanding						Options Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.25-0.26		60,000		4.40	$	0.26		60,000	$	0.26
$	0.27-0.41		60,000		2.40	$	0.34		60,000	$	0.34
$	0.35-0.36		60,000		3.40	$	0.36		60,000	$	0.36
$	0.53		30,000		1.11	$	0.53		30,000	$	0.53
$	0.25-0.53		210,000		3.07	$	0.35		210,000	$	0.35