| 3. Stock Options |
There were 42,500 option awards
granted to employees and no option awards granted to non-employees in the three months ended June 30, 2012 and there were 35,500
option awards granted to employees and no option awards granted to non-employees in the three months ended June 30, 2011. There
were 102,500 option awards granted to employees and 5,000 option awards granted to non-employees in the six months ended June 30,
2012 and there were 10,000 option awards granted to employees and no option awards granted to non-employees in the six months ended
June 30, 2011. The fair values of option awards granted in the six months ended June 30, 2012 and 2011, were estimated
using a Black-Scholes option pricing model using the following assumptions:
| |
Three Months ended
June 30,
|
Six Months ended
June 30,
|
| |
2012 |
2011 |
2012 |
2011 |
| Risk free interest rate |
0.75 1.10 |
% |
1.65 1.72 |
% |
0.75 2.31 |
% |
1.65 - 2.30 |
% |
| Dividend yield |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
| Expected term |
5 years |
|
5 years |
|
5-10 years |
|
5 years |
|
| Expected volatility |
62.8 |
% |
61.7 |
% |
62.8 - 67.9 |
% |
61.7 61.9 |
% |
The status of the options issued as of June 30, 2012, and changes during the six months ended June
30, 2012 and 2011, were as follows:
| |
|
Options outstanding |
|
| |
|
Number of shares
|
|
|
Weighted average price per share |
|
| Balance at December 31, 2011 |
|
|
1,003,000 |
|
|
$ |
0.31 |
|
| Options granted |
|
|
65,000 |
|
|
|
0.15 |
|
| Options exercised, expired or forfeited |
|
|
28,000 |
|
|
|
0.36 |
|
| Balance at March 31, 2012 |
|
|
1,040,000 |
|
|
$ |
0.30 |
|
| Options granted |
|
|
42,500 |
|
|
|
0.15 |
|
| Options exercised |
|
|
5,000 |
|
|
|
0.07 |
|
| Options expired or forfeited |
|
|
20,000 |
|
|
|
0.20 |
|
| Balance at June 30, 2012 |
|
|
1,057,500 |
|
|
$ |
0.29 |
|
| |
|
Options outstanding |
|
| |
|
Number of shares
|
|
|
Weighted average price per share |
|
| Balance at December 31, 2010 |
|
|
1,119,000 |
|
|
$ |
0.30 |
|
| Options granted |
|
|
10,000 |
|
|
|
0.16 |
|
| Options exercised, expired or forfeited |
|
|
4,500 |
|
|
|
0.27 |
|
| Balance at March 31, 2011 |
|
|
1,124,500 |
|
|
$ |
0.30 |
|
| Options granted |
|
|
35,500 |
|
|
|
0.17 |
|
| Options exercised, expired or forfeited |
|
|
-- |
|
|
|
-- |
|
| Balance at June 30, 2011 |
|
|
1,160,000 |
|
|
$ |
0.29 |
|
The following table summarizes
information about options at June 30, 2012:
| Options outstanding |
|
|
Options exercisable |
|
| Total shares |
|
|
Weighted average exercise price |
|
|
Weighted average remaining contractual life in years |
|
|
Aggregate intrinsic value |
|
|
Total shares |
|
|
Weighted average exercise price |
|
|
Weighted average remaining contractual life in years |
|
|
Aggregate intrinsic value |
|
| |
1,057,500 |
|
|
$ |
0.29 |
|
|
|
4.69 |
|
|
$ |
1,770 |
|
|
|
947,250 |
|
|
$ |
0.31 |
|
|
|
4.12 |
|
|
$ |
1,770 |
|
Nonvested stock awards as of
June 30, 2012 and changes during the six months ended June 30, 2012, were as follows:
| |
|
Nonvested |
|
| |
|
Number of shares
|
|
|
Weighted average grant date fair value |
|
| Balance at December 31, 2011 |
|
|
60,000 |
|
|
$ |
0.09 |
|
| Granted |
|
|
65,000 |
|
|
|
0.08 |
|
| Vested |
|
|
18,500 |
|
|
|
0.11 |
|
| Expired before vesting |
|
|
6,000 |
|
|
|
0.09 |
|
| Balance at March 31, 2012 |
|
|
100,500 |
|
|
$ |
0.08 |
|
| Granted |
|
|
42,500 |
|
|
|
0.08 |
|
| Vested |
|
|
22,750 |
|
|
|
0.09 |
|
| Expired before vesting |
|
|
10,000 |
|
|
|
0.08 |
|
| Balance at June 30, 2012 |
|
|
110,250 |
|
|
$ |
0.08 |
|
As of June 30, 2012 and 2011,
unrecognized compensation cost associated with non-vested share-based employee and non-employee compensation totaled $6,598 and
$4,085, respectively, which are expected to be recognized over weighted average periods of 7 months and 9 months, respectively.
|