STOCK OPTIONS - Note 14

3 Months Ended

Mar. 31, 2014

Notes to Financial Statements

STOCK OPTIONS - Note 14

NOTE 14 - STOCK OPTIONS

The 2009 Equity Incentive Compensation Plan

The following summary represents options activity during the three months ended March 31, 2014 under the New Plan.

			Weighted-
	Under		Average		Aggregate
	New		Exercise		Intrinsic
	Plan		Price		Value
Balance, December 31, 2013	199,125	$	12.58	$	-
Granted	-
Lapsed	(61,400)		37.50		-
Exercised
Cancelled	-		-		-
Balance, March 31, 2014	137,725	$	11.39	$	-

The following represents options summary as of March 31, 2014 under the New Plan.

	Options Outstanding				Options Exercisable
		Weighted-		Weighted-			Weighted-
		Average		Average			Average
	Number	Remaining		Exercise	Number		Exercise
	Outstanding	Contractual Life		Price	Exercisable		Price
Options	137,725	2.80 years	$	11.39	137,725	$	11.39

On February 14, 2013, the Company's BOD approved of the granting of 10,000 options to an employee with an exercise price of $6.50, with monthly vesting beginning in February 2013. The options expire four years from the date of grant. The Company determined the grant date fair value of 10,000 options of $0.17 per share which was calculated using the Black Scholes Options Pricing Model as follows: Stock price of $6.50 per share, exercise price of $6.50 per share, expected life of 4.00 years, volatility of 32.48% and discount rate of 0.64%.

In November of 2013, the Company's BOD approved of the granting of 55,000 options to certain employees with an exercise price of $3.14, with monthly vesting beginning in November 2013. The options expire four years from the date of grant. The Company determined the grant date fair value of 55,000 options of $1.14 per share which was calculated using the Black Scholes Options Pricing Model.

As a result, of the issuances in February and November of 2013 of 10,000 and 55,000 shares respectively, the total options issued during 2013 were 65,000.

The Company did not record any non-cash stock compensation expense for the three months ended March 31, 2014.