WaveDancer, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

9. Stock Options and Warrants (Tables)

9. Stock Options and Warrants (Tables)

12 Months Ended

Dec. 31, 2012

The fair values of option awards granted in 2012 and 2011 were estimated using the Black-Sholes option pricing model under the following assumptions:

	2012			2011

Risk free interest rate		0.62% - 2.31	%		1.65% 2.30	%
Dividend yield		0	%		0	%
Expected term	5-10 years			5 years
Expected volatility		62.8 67.9	%		61.7 61.9	%

Options issued under foregoing option plans

The status of the options issued under the foregoing option plans as of December 31, 2012, and changes during the years ended December 31, 2012 and 2011, were as follows:

	Options outstanding
	Number of shares		Weighted average price per share

Balance at December 31, 2010		1,119,000	$	0.30
Options granted		45,500		0.17
Options exercised, expired or forfeited		161,500		0.20
Balance at December 31, 2011		1,003,000		0.31
Options granted		109,500		0.14
Options exercised		5,000		0.07
Options expired or forfeited		75,000		0.30
Balance at December 31, 2012		1,032,500	$	0.29

Summary information about options

The following table summarizes information about options at December 31, 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

	1,032,500	$	0.29		4.32	$	1,770		920,250	$	0.31		3.73	$	1,770

Nonvested stock awards

Nonvested stock awards as of December 31, 2012 and changes during the year ended December 31, 2012, were as follows:

	Nonvested
	Number of shares		Weighted average grant date fair value

Balance at December 31, 2011		60,000	$	0.09
Granted		109,500		0.08
Vested		41,250		0.10
Expired before vesting		16,000		0.08
Balance at December 31, 2012		112,250		0.08