Stock Options (Tables)

12 Months Ended

Dec. 31, 2013

Stock Options Tables

Stock options outstanding and exercisable

The following is a summary of changes to outstanding stock options during the fiscal year ended December 31, 2013 and 2012:

	Number of Share Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value (1)
Outstanding at December 31, 2011		2,529,000		$	1.07		6.09	$	—
Granted		270,000		$	0.08		3.96	$	—
Exercised		—		$	—		—	$	—
Forfeited or Cancelled		(1,989,000	)	$	1.11		—	$	—
Outstanding at December 31, 2012		810,000		$	0.64		4.06	$	—
Granted		4,400,000		$	0.02		2.66	$	—
Exercised		—		$	—		—	$	—
Forfeited or Cancelled		—		$	—		—	$	—
Outstanding at December 31, 2013		5,210,000		$	0.12		2.72	$	—
Exercisable at December 31, 2013		675,000		$	0.75		3.26	$	—
Vested and expected to vest(2)		5,210,000		$	0.12		2.72	$	—

(1) Aggregate intrinsic value represents the value of the closing price per share of our common stock on the last trading day of the fiscal period in excess of the exercise price multiplied by the number of options outstanding or exercisable, except for the “Exercised” line, which uses the closing price on the date exercised.

(2) Number of shares includes options vested and those expected to vest net of estimated forfeitures.

Unvested share activity

Unvested share activity for the year ended December 31, 2013 is summarized below:

	Unvested Number of Options			Weighted-Average Grant Date Fair Value
Unvested balance at December 31, 2012		236,000			$	0.04
Granted		4,400,000			$	0.02
Vested		(101,000	)		$	0.11
Forfeited		—			$	—
Unvested balance at December 31, 2013		4,535,000			$	0.02

Stock option activity

The Company settles employee stock option exercises with newly issued common shares. The table below presents information related to stock option activity for the fiscal years ended December 31, 2013 and 2012:

	Years Ended December 31,
	2013		2012
Total intrinsic value of stock options exercised	$	—	$	—
Cash received from stock option exercises	$	—	$	—
Gross income tax benefit from the exercise of stock options	$	—	$	—

Fair Value of Stock options

The fair values of all stock options granted during the fiscal years ended December 31, 2013 and 2012 were estimated on the date of grant using the following range of assumptions:

	Years Ended December 31,
	2013			2012
Expected life (in years)		1.5			1.5- 6.5
Average risk-free interest rate		1.66	%		1.66	%
Expected volatility		118	%		108% - 136	%
Expected dividend yield		0	%		0	%
Forfeiture rate		3	%		3	%