Stockholders' Equity

9 Months Ended

Sep. 30, 2014

Stockholders' Equity [Abstract]

Stockholders' Equity

7. Stockholders’ Equity

The Company issued a stock warrant dividend of one warrant per one common share outstanding as of the record date of March 23, 2012.  A total of 7,983,175 warrants were issued and have an exercise price of $4.00.  The warrants are exercisable over 6 years from the record date.  The Company has the right to call the warrants in the future if the market price of the common stock exceeds 150% of the exercise price of the warrant ($6.00).  The following table summarizes the warrant activity for the nine months ending September 30, 2014:

	Warrants			Weighted Average Exercise Price		Weighted Average Expected Life (Years)
Outstanding, December 31, 2013		7,960,775		$	4.00		4.25
Issued		-			-
Exercised		(49,042	)	$	4.00
Expired		-			-
Outstanding, September 30, 2014		7,911,733		$	4.00		3.50

The Company entered into an “at will” employment agreement with Phillip Roberson as President and CFO for a three year period beginning July 1, 2014. As a signing bonus, Mr. Roberson is entitled to receive a total of 50,000 shares of common stock, of which 10,000 shares were immediately vested. Ten thousand shares will be received and vested at each of the six month, twelve month, eighteen month, and twenty four month anniversary dates of the commencement date. The fair value of this stock grant was $275,000 of which $112,292 was recognized as non-cash stock compensation expense during the three and nine months ended September 30, 2014. The remaining future expense related to this stock grant is $162,708 and is expected to be recognized over the weighted average expected life of less than one year.