Stock-based compensation

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

7. Stock-based Compensation

On August 15, 2008, the Company granted 25,000 non-qualified stock options to each of its four directors. These options had a vesting period of one year from the date of grant, and they became fully vested and exercisable on August 15, 2009. These options expire on August 15, 2013 and have an exercise price of $0.38 per share. As of June 30, 2013 and December 31, 2012, 100,000 options remain outstanding under this grant.

FASB ASC 718 “Compensation-Stock Compensation ” requires entities to estimate the number of forfeitures expected to occur and record expense based upon the number of awards expected to vest. The outstanding stock options under the 1998 Plan have been fully vested and related expenses were fully amortized for the six months and three months ended June 30, 2013.

For the six months and three months ended June 30, 2013, option activity was as follows:

	Shares		Weighted- Average Exercise Price		Remaining Contractual Term
Outstanding at beginning of period		100,000	$	0.38		0.13
Granted		-		-
Expired and forfeited		-		-
Exercised		-		-
Outstanding at end of period		100,000	$	0.38		0.13
Exercisable at June 30, 2013		100,000	$	0.38		0.13

As of June 30, 2013, a summary of options outstanding under the Company’s 2008 options grant was as follows:

Range of Exercise Price		Weighted-Average Remaining Contractual Life (Years)		Number Outstanding		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
	0.3800		0.13		100,000	$	0.38		100,000	$	0.38

In addition, the Company has outstanding 30,000 warrants issued in lieu of consulting fees, which expire in July 2014 and have an exercise price of $0.63 per share.

The Company agreed to compensate two of its four directors by issuing common stock for services rendered in 2013 and 2012. The Company agreed to compensate one director in a combination of cash and common stock for services rendered in 2013 and 2012. Two of these directors are affiliated with the advisory services firm that is currently providing investment banking services to the Company. Beginning in the second quarter of 2013 and continuing through 2013, the Company agreed to provide the compensation of the fourth director in cash instead of cash and common stock. The number of shares issued to each director was determined based upon the equivalent cash compensation accrued divided by the closing price of the Company’s common stock on the date that the compensation is fully earned each quarter, which is the last day of such quarter. The Company recorded stock-based compensation as common of $12,500 for the quarter ending June 30, 2013 for two directors, which is recorded as common stock to be issued.

On January 17, 2013, the Company issued 31,250 shares of common stock to each of two directors, and 15,626 shares of common stock to another director, as compensation for the three months ended December 31, 2012. These shares, totaling 78,126, were valued at a per share price of $0.20, or a total of $15,625.

On April 12, 2013, the Company issued 34,722 shares of common stock to each of two directors, and 17,362 shares of common stock to another director, as compensation for the three months ended March 31, 2013. These shares, totaling 86,806, were valued at a per share price of $0.18, or a total of $15,625.

On July 15, 2013, the Company issued 39,063 shares of common stock to each of two directors as compensation for the three months ended June 30, 2013. These shares, totaling 78,126, were valued at a per share price of $0.16, or a total of $12,500.