Note 7. Employee Stock Options (Tables)

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Summary of stock options issued

	Number of Options Outstanding			Range of Exercise Price		Weighted Average Exercise Price		Aggregate Intrinsic Value
Balance at December 31, 2010		100,000		$	2.10 - $2.32	$	2.13	$	16,700
Options granted		30,000		$	1.70 - $2.30	$	1.82	$	13,240
Options forfeited		(2,500	)	$	1.70 - $2.10	$	1.78	$	1,175
Balance at December 31, 2011		127,500		$	1.70 - $2.32	$	2.07	$	24,590
Options granted		196,000		$	0.01 - $3.33	$	1.37	$	370,750
Options exercised		(25,154	)	$	1.70 - $2.10	$	2.04	$	35,661
Options expired or cancelled		(70,000	)	$	0.01	$	0.01	$	226,800
Options forfeited		(7,750	)	$	1.70 - $3.33	$	2.45	$	6,438
Balance at December 31, 2012		220,596		$	0.01 - $3.33	$	2.09	$	257,835

Schedule Of Stock Options outstanding

		Options Outstanding				Options Exercisable
Exercise Price		Number		Weighted Average Remaining Contractual Life (in Years)		Number
$	0.01		35,000		9.05		35,000
$	1.70		15,000		8.40		15,000
$	1.87		3,000		8.40		3,000
$	2.10		57,596		7.61		35,096
$	2.30		15,000		8.97		15,000
$	2.31		16,500		7.61		16,500
$	2.81		45,000		5.06		10,000
$	3.00		5,000		9.75		5,000
$	3.33		28,500		9.25		0
Total			220,596		7.74		134,596

Schedule of Stock Options, Valuation Assumptions

	Year ended  December 31, 2012			Year ended  December 31, 2011
Expected dividend yield		0	%		0	%
Expected stock price volatility		131	%		157	%
Weighted-average risk-free interest rate		0.98	%		1.81	%
Weighted-average expected life of options (in years)		5.5			5.4