Equity

12 Months Ended

Dec. 31, 2012

Equity

Note 8 Equity

Issuances of Common Stock

See Note 12, Subsequent Events.

Stock Compensation

Gateway's 2007 Plan provides for stock-based compensation for officers, employees and non-employee directors.  The 2007 Plan was approved by the shareholders during May 2007 and provided for 2,000,000 shares to be made available under the plan.  In December 2012, the Company's 2007 Plan was frozen. As a result, no further grants or awards will be made under the 2007 Plan.

Stock Options

The Company issued no stock options during the year ended December 31, 2012.  During the year ended December 31, 2011, 334,471 stock options were granted to employees.  During the year ended December 31, 2012, no options were exercised and 20,000 options were cancelled. 

The following table summarizes stock option activity for the year ended December 31, 2012:

Stock option activity

	Shares			Weighted Average Exercise Price	Weighted Average Contractual Terms (in years)		Intrinsic Value of Options as of December 31, 2012
Options outstanding, beginning of period	662,249		$	0.28	3.90
Options granted	-			-	-
Options canceled	(20,000	)		0.45	-
Options exercised	-			-	-
Options outstanding, end of period	642,249		$	0.28	3.01	$	-
Options exercisable, end of period	326,657		$	0.31	2.77	$	-

 The following table summarizes stock option activity for the year ended December 31, 2011:

	Shares			Weighted Average Exercise Price	Weighted Average Contractual Terms (in years)		Intrinsic Value of Options as of December 31, 2011
Options outstanding, beginning of period	402,778		$	0.35	4.20
Options granted	334,471			0.21	4.56
Options canceled	(75,000	)		-	-
Options exercised	-			-	-
Options outstanding, end of period	662,249		$	0.28	3.90	$	-
Options exercisable, end of period	139,167		$	0.38	2.79	$	-

The market value of Gateway's common stock on December 31, 2012 was $0.03 per share.

Restricted Stock

During the year ended December 31, 2012, 166,667 shares of restricted stock were granted to a non-employee director at a price of $0.05 per share with a three-month vesting period. 

During the year ended December 31, 2011, 147,368 shares of restricted stock were issued to employees at a price of $0.20 per share with a three-year vesting period and 318,751 shares of restricted stock were granted to non-employee directors at a price of $0.22 per share with a three-month to three-year vesting period.          

The following table represents restricted stock activity for the year ended December 31, 2012:

Restricted stock activity

	Shares			Weighted Average Grant Date Fair Value
Non-vested, beginning of period	522,368		$	0.24
Granted	166,667			0.05
Vested	(407,454	)		0.16
Forfeited	-			-
Non-vested, end of period	281,581		$	0.23

The following table represents restricted stock activity for the year ended December 31, 2011:

	Shares			Weighted Average Grant Date Fair Value
Non-vested, beginning of period	266,665		$	0.30
Granted	466,119			0.21
Vested	(193,749	)		0.25
Forfeited	(16,667	)		0.30
Non-vested, end of period	522,368		$	0.24