7. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS

9 Months Ended

Sep. 30, 2014

Stock Warrants Stock Splits And Stock Options

NOTE 7 - STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS

The Company measures and records compensation expense for all share-based payment awards made to employees and directors, including employee stock options, based on estimated fair values.  There were no compensation costs or deferred tax benefits recognized for stock-based compensation awards for the nine months ended September 30, 2014 and 2013. Changes are due to the stock buyback and reverse stock split.

Option activity for the twelve months ended December 31, 2013 and the nine months ended September 30, 2014 was as follows:

	Number of  Options		Weighted Average Exercise Price per Share		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Outstanding on January 1, 2013		539	$	5,400	$	2,800	$	-
Granted		-		-		-
Exercised		-		-		-
Canceled		-		-		-
Outstanding on December 31, 2013		539	$	5,400	$	2,800	$	-
Granted		-		-		-
Exercised		-		-		-
Canceled		124		-		-
Outstanding on September 30, 2014		415	$	5,400	$	2,800	$	-

Exercisable options totaled 538.8113 at December 31, 2013 and totaled 414.5613 at September 30, 2014.