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Stock Options
 12 Months Ended
Dec. 31, 2012
Stock Options [Abstract]  
Stock Options
Note 4. Stock Options

2001 Qualified Incentive Stock Option Plan:

The Company's board of directors approved a Stock Option Plan on June 15, 2001, which provides for the issuance of up to 5,000,000 shares of the Company's common stock to employees and non-employee directors.

No options were issued in the years ended December 31, 2012 or 2011.

The Company recognized compensation expense related to the issued option grants of E32 and E86 for the years ended December 31, 2012 and 2011, respectively. These amounts were recognized as research and development expense and general and administrative expense based on the specific recipient of the award for the years ended December 31, 2012 and 2011, respectively. As of December 31, 2012, a total of 250,000 shares of common stock with E3 unrecognized compensation cost is unvested. The unrecognized compensation cost is expected to be recognized over a weighted average period of one year.

A summary of activity related to stock options under the 2001 and 2009 Stock Option Plans is represented below:
 
 
 
Number of
Shares
 
 
Exercise Price
Range
 
 
Weighted Average
Exercise Price
 
 
Weighted Average
Remaining Contractual
Term (Years)
 
 
Aggregate
Intrinsic
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, December 31, 2009
 
 
442,500
 
 
$
0.12 to $3.50
 
 
$
0.97
 
 
 
 
 
 
 
Granted
 
 
4,350,000
 
 
$
0.14 to $0.19
 
 
$
0.15
 
 
 
 
 
 
 
Expired
 
 
--
 
 
 
--
 
 
 
--
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, December 31, 2010
 
 
4,792,500
 
 
$
0.12 to $3.50
 
 
$
0.23
 
 
 
 
 
 
 
Granted
 
 
--
 
 
 
--
 
 
 
--
 
 
 
 
 
 
 
Expired
 
 
( 50,000
)
 
$
2.50
 
 
$
2.50
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, December 31, 2011
   
4,742,500
 
 
$
0.12 to $3.50
 
 
$
0.20
           
Granted
   
--
 
 
 
--
 
 
 
--
           
Expired/forfeited
   
(1,060,000
)
 
$
0.14 to $3.50
 
 
$
3.19
           
                                   
Outstanding, December 31, 2012
 
 
3,682,500
 
 
$
0.12 to $3.50
 
 
$
0.17
 
 
 
6.55
 
 
$
--
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable, December 31, 2012
 
 
3,432,500
 
 
$
0.12 to $3.50
 
 
$
0.17
 
 
 
6.48
 
 
$
--
 

The aggregate intrinsic value of the stock options fluctuates in relation to the market price of the Company's common stock.

The range of exercise prices for options outstanding under the 2001 and 2009 Stock Option Plans at December 31, 2012 are as follows:

 
 
 
 
 
Number of
 
 
 
 
shares
 
 
Exercise Price
 
 
 
 
 
 
7,500 
 
$
3.50
 
100,000 
 
$
0.55
 
1,000,000 
 
$
0.19
 
2,425,000 
 
$
0.14
 
150,000 
 
$
0.12
 


A summary of the status of the Company's non vested options as of December 31, 2012 and changes during the year ended December 31, 2012 are presented below:

 
 
Number of
 
 
 
 
 
 
Shares
 
 
Weighted Average
 
 
 
Underlying
 
 
Grant Date Fair
 
Non vested options
 
Options
 
 
Value
 
 
 
 
 
 
 
 
Non vested at December 31, 2011
 
 
1,500,000
 
 
$
0.16
 
Granted
 
 
 
 
 
 
--
 
Forfeited
   
(1,000,000
)
 
$
0.14
 
Vested
 
 
(250,000
)
 
$
0.19
 
Non vested at December 31, 2012
 
 
250,000
 
 
$
0.19
 
 
As of December 31, 2012, the 2001 Stock Option Plan has 257,500 shares available for future grants of stock options.

Not included in the above table are 19,218,450 options issued as part of the acquisition of Bestewil described in Note 6, which expired in 2012. Also not included is a warrant for 32,000,000 shares of common stock exercisable at $0.25 per share issued to Round Enterprises as part of a loan agreement in 2010, which expired in 2012.

The Company will issue new shares upon the exercise of any options.