Stock-Based Compensation

6 Months Ended

Jun. 30, 2013

Share-based Compensation [Abstract]

Stock-Based Compensation

Note 6:  Stock-Based Compensation

The Company has historically granted stock options to certain vendors and employees.  

In November 2010, the board of directors authorized the 2010 Stock Incentive Plan ("the Plan") which provides us with the ability to issue options on up to 1,360,000 common shares.

In April 2011, the Company increased the number of shares of the Company’s common stock available for issuance under the Plan from 1,360,000 to 2,500,000.

Stock option awards are expensed on a straight-line basis over the requisite service period.  During the three and six months ended June 30, 2013, the Company recognized expense of $24,115 and $60,144, respectively, associated with stock option awards. During the three and six months ended June 30, 2012, the Company recognized expense of $36,241 and $66,270, respectively, associated with stock option awards. At June 30, 2013, future stock compensation expense (net of estimated forfeitures) not yet recognized was $451,348 and will be recognized over a weighted average remaining vesting period of 3.09 years.  The following summarizes stock option activity for the six months ended June 30, 2013:

								Weighted
				Weighted		Weighted		Average
				Average		Average		Remaining
	Number of			Exercise		Fair		Contractual
	Shares			Price		Value		Life
Outstanding at December 31, 2012		2,184,583		$	0.89	$	0.48
Granted at market price		-
Exercised		(94,500	)
Forfeited		(438,750	)
Outstanding at June 30, 2013		1,651,333			0.82		0.48		8.4
Exercisable at June 30, 2013		612,583		$	0.51	$	0.29		7.4

The outstanding shares at December 31, 2012 were adjusted to reflect options that were issued but not included in the prior periods tables.  This does not impact stock compensation expense.

The following table summarizes information about the Company’s stock options at June 30, 2013:

	Exercisable				Unexercisable				Total
			Weighted				Weighted				Weighted
			Average				Average				Average
	Number		Exercise		Number		Exercise		Number		Exercise
Range of Exercise Prices	Outstanding		Price		Outstanding		Price		Outstanding		Price
$.25 per share		493,333	$	0.25		107,000		0.25		600,333	$	0.25
$1.59 per share		119,250		1.59		166,750		1.59		286,000	$	1.59
$0.99 per share		-		-		765,000		0.99		765,000	$	0.99