| Black-Scholes option pricing model assumptions |
The fair values of option awards granted
in the nine months ended September 30, 2012and 2011, were estimated using a Black-Scholes option pricing model usingthe following
assumptions:
| |
|
Nine Months ended
September 30,
|
|
| |
|
2012 |
|
|
2011 |
|
| Risk free interest rate |
|
|
0.75 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 outstanding |
The status of the options issued as of September 30, 2012,
and changes during the nine months ended September 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 exercised, expired or forfeited |
|
|
27,000 |
|
|
|
0.30 |
|
| Balance at September 30, 2012 |
|
|
1,030,500 |
|
|
$ |
0.29 |
|
| |
|
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 |
|
| Balance at June 30, 2011 |
|
|
1,160,000 |
|
|
$ |
0.29 |
|
| Options exercised, expired or forfeited |
|
|
157,000 |
|
|
|
0.20 |
|
| Balance at September 30, 2011 |
|
|
1,003,000 |
|
|
$ |
0.31
|
|
|
| Options Summary |
The following table summarizes information
about options at September 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 |
|
| |
1,030,500 |
|
|
$ |
0.29 |
|
|
|
4.56 |
|
|
$ |
1,770 |
|
|
|
920,250 |
|
|
$ |
0.31 |
|
|
|
3.98 |
|
|
$ |
1,770
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonvested Stock awards |
Nonvested stock awards as of September
30, 2012 and changes during the nine months ended September 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 |
|
| Balance at September 30, 2012 |
|
|
110,250 |
|
|
$ |
0.08 |
|
|