STOCK OPTIONS

On September 19, 2008, the Board of Directors and Stockholders of the Company adopted the 2008 Stock Option Plan (the "2008 Plan"), which allows the Company to grant up to 500,000 options to employees, officers, directors and consultants to purchase shares of the Company's Common Stock. Options granted under the plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only to employees of the Company, while Non-qualified options may be issued to non-employee directors, consultants, and others, as well as to employees of the Company. There were no grants of options during the years ended December 31, 2014 or 2013.

Options generally vest over a three year period. The Company did not record any stock option expense for the years 2014 and 2013. As of December 31, 2013, the Company had recognized all remaining stock option expense for its outstanding stock options.

There were no options exercised for the year ending December 31, 2014 and there were 55,366 options exercised in 2013. The intrinsic value of outstanding and exercisable options at December 31, 2014 was approximately $98,000.

The following tables summarize activity under the stock option plans of the Company and the stock options outstanding at December 31, 2014:



	Weighted Average Exercise Price			Options Outstanding		Vested and Exercisable
Balance, December 31, 2012	$	1.82		425,965		425,965
Granted	—			—		—
Forfeited	—			—		—
Exercised	0.84			(55,366	)	(55,366	)
Vested	—			—		—

Balance, December 31, 2013	1.96			370,599		370,599
Granted	—			—		—
Forfeited	(1.91		)	(65,500	)	(65,500	)
Exercised	—			—		—
Vested	—			—		—

Balance, December 31, 2014	$	1.97		305,099		305,099