Note 6 - Share-Based Compensation

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 6 – Share Based Compensation

During the nine months ended September 30, 2013, the Company issued 35,000 stock option awards and 80,000 option awards were forfeited. There were no options granted or forfeited during 2012. In accordance with the recognition provisions of the FASB’s Accounting Standards Codification 718, Share-Based Payments, the Company recorded the fair value of the options issued at $0.03 per share. The fair value of the options was determined using the Black-Scholes option pricing model with the following assumptions: no dividend yield, risk-free interest rate of 0.75%, volatility of 66.25%, and an expected term of 6.5 years. The Company recognized stock-based compensation expense for stock options of $2,140 and $7,837 for the three months ended September 30, 2013 and 2012, respectively. The Company recognized stock-based compensation expense for stock options of $6,603 and $27,458 for the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013 and 2012, there were 645,000 options outstanding.

As of September 30, 2013 and 2012, there were 103,000 and 245,000 restricted stock awards outstanding, respectively.  During the three and nine months ended September 30, 2013, 27,000 restricted stock awards were forfeited. The Company recognized stock-based compensation expense for restricted stock of $1,206 and 1,328 for the three months ended September 30, 2013 and 2012, respectively. The Company recognized stock-based compensation expense for restricted stock of $3,616 and $3,946 for the nine months ended September 30, 2013 and 2012, respectively.  

As of September 30, 2013, there was $14,746 of unrecognized stock-based compensation expense related to all outstanding equity awards that will be recognized in future periods.