STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2014

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

8. Stockholders’ Equity

We approved a stock warrant dividend of one warrant per one common share in March 2012. The warrants have an exercise price of $4.00 and 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 year ending December 31, 2014:

	Warrants			Weighted Average Exercise Price		Weighted Average Expected Life (Years)
Outstanding, December 31, 2013		7,960,775		$	4.00		4.25
Issued		-			-
Exercised		(49,049	)	$	4.00
Expired		-			-
Outstanding, September 30, 2014		7,911,726		$	4.00		3.25

Effective May 16, 2012, we executed an At Market Issuance Sales Agreement with MLV & Co., LLC (“MLV”) providing for an at-the-market offering of securities of up to 900,000 shares of common stock (the “ATM Offering”). The ATM Offering was undertaken pursuant to Rule 415 and a universal shelf Registration Statement on Form S-3 which was declared effective by the SEC on December 9, 2011.  No shares were sold in the years ended December 31, 2014 or 2013. The Board of Directors terminated the ATM Offering in February, 2014.

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 $169,584 was recognized as non-cash stock compensation expense during the twelve months ended December 31, 2014. The remaining future expense related to this stock grant is $105,416 and is expected to be recognized over the weighted average expected life of less than one year. Once the signing bonus grant has been fully vested and paid, Mr. Roberson will be entitled to receive, as part of his annual compensation, on his third anniversary date 5,000 shares, on his fourth anniversary date 6,000 shares, on his fifth anniversary date 7,000 shares, on his sixth anniversary date 8,000 shares, on his seventh anniversary date 9,000 shares, and each annual anniversary date thereafter 10,000 shares.