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NOTE 12 - STOCK OPTIONS AND WARRANTS | 12 Months Ended
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Dec. 31, 2014
Disclosure Text Block Supplement [Abstract] |
Shareholders' Equity and Share-based Payments [Text Block] | NOTE 12 - STOCK OPTIONS AND WARRANTS 2004 Stock Incentive Plan The Company adopted the 2004 Stock Incentive as amended Plan (the “2004 Plan”) in order to attract and retain qualified employees, directors, independent contractors or agents of the Company. Under the Plan, the Board of Directors (the “Board”), in its discretion may grant stock options (including non-statutory stock options and incentive stock options qualifying under Section 422 of the Code), stock appreciation rights (including free-standing, tandem and limited stock appreciation rights), warrants, dividend equivalents, stock awards, restricted stock, phantom stock, performance shares or other securities or rights that the Board determines to be consistent with the objectives and limitations of the plan at a price to be equal to or greater than 50% of the fair market value of such shares on the date of grant of such award. The Plan terminated on September 29, 2014; options granted before that date were not affected by plan termination. At December 31, 2014 and 2013, 163,846 and 89,116 options remained outstanding under the 2004 Plan, respectively. 2004 Directors’ and Officers’ Stock Incentive Plan The Company adopted the 2004 Directors’ and Officers’ Stock Incentive Plan (the “2004 D&O Plan”) in order to provide long-term incentive and rewards to officers and directors of the Company and subsidiary and to attract and retain qualified employees, directors, independent contractors or agents of the Company. The Plan terminated on September 29, 2014 with no shares outstanding under the 2004 D&O plan. 2007 Consultant Stock Incentive Plan The Company adopted the 2007 Consultant Stock Incentive Plan (the “2007 Plan”) to: (i) provide long-term incentives, payment in stock in lieu of cash and rewards to consultants, advisors, attorneys, independent contractors or agents ("Eligible Participants") of the Company; (ii) assist the Company in attracting and retaining independent contractors or agents with experience and/or ability on a basis competitive with industry practices; and (iii) associate the interests of such independent contractors or agents with those of the Company's stockholders. The Company has reserved 19,393 shares for issuance under this plan. Awards under the Plan may include, but need not be limited to, stock options (including non-statutory stock options and incentive stock options qualifying under Section 422 of the Code), stock appreciation rights (including free-standing, tandem and limited stock appreciation rights), warrants, dividend equivalents, stock awards, restricted stock, phantom stock, performance shares or other securities or rights that the Board determines to be consistent with the objectives and limitations of the Plan. The price shall be equal to or greater than 50% of the fair market value of such shares on the date of grant of such award. The Board shall determine the extent to which awards shall be payable in cash, shares of the Company common stock or any combination thereof. The Plan (but not the awards theretofore granted under the Plan) shall terminate on and no awards shall be granted after January 22, 2017. At December 31, 2014 and 2013 zero options were outstanding under the 2007 Plan. In February 2014, the Company granted 50,000 incentive stock options with an exercise price of $4.50 per option to certain non-executive employees under the 2004 Stock Incentive Plan. Approximately 25,000 of the options vest immediately with the remaining 50% vesting ratably over a three-year period. The Company estimated the fair value of each option using the Black Scholes option-pricing model with the following weighted-average assumptions: expected dividend yield of 0.0%, risk-free interest rate of 0.71%, volatility at 353.95% and an expected life of 5 years. The Company estimates the forfeiture rate based on historical data. Based on an analysis of historical information, the Company has applied a forfeiture rate of 15%. As a result, the Company estimated the value of these options at $115,488. In May 2014, the Company granted 20,000 incentive stock options with an exercise price of $4.50 per option to a non -executive employee under the 2004 Stock Incentive Plan. The Company recognizes compensation cost on awards on a straight-line basis over the vesting period, approximately five years. The Company estimated the fair value of each option using the Black Scholes option-pricing model with the following weighted-average assumptions: expected dividend yield of 0.0%, risk-free interest rate of 1.68%, volatility at 328.76% and an expected life of 5 years. The Company estimates the forfeiture rate based on historical data. Based on an analysis of historical information, the Company has applied a forfeiture rate of 15%. As a result, the Company estimated the value of these options at $77,981. In July 2014, the Company granted 10,000 incentive stock options with an exercise price of $4.50 per option to a certain non-executive employee under the 2004 Stock Incentive Plan. Options vest immediately. The Company estimated the fair value of each option using the Black Scholes option-pricing model with the following weighted-average assumptions: expected dividend yield of 0.0%, risk-free interest rate of 1.0%, volatility at 323.81% and an expected life of 5 years. As a result, the Company estimated the value of these options at $44,987. The Company uses judgment in estimating the amount of stock-based awards that are expected to be forfeited. If actual forfeitures differ significantly from the original estimate, stock-based compensation expense and the results of operations could be impacted. A summary of the status of the Company’s stock option plans for the fiscal years ended December 31, 2014 and 2013 and changes during the years are presented below: (in number of options):
|  | Number of Options |  |  | Average Exercise Price |  | Average Remaining Contractual Term |  | Aggregate Intrinsic Value |
Outstanding options at January 1, 2013 |  |  | 95,824 |  |  | $ | 4.80 |  | 4.4 years |  |  |
Options granted |  |  | - |  |  |  |  |  |  |  |  |
Options exercised |  |  | - |  |  |  |  |  |  |  |  |
Options canceled/forfeited |  |  | (6,708 | ) |  | $ | 4.80 |  |  |  |  |
Outstanding options at December 31, 2013 |  |  | 89,116 |  |  | $ | 4.80 |  | 3.4 years |  | $ | -0- |
Options granted |  |  | 80,000 |  |  | $ | 4.50 |  | 4.3 years |  |  |  |
Options exercised |  |  | - |  |  |  |  |  |  |  |  |  |
Options canceled/forfeited |  |  | (5,270 | ) |  |  | 4.80 |  |  |  |  |  |
Outstanding options at December 31, 2014 |  |  | 163,846 |  |  |  | 4.65 |  | 2.5 years |  | $ | -0- |
Vested Options: |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2014: |  |  | 115,653 |  |  | $ | 4.65 |  | 1.8 years |  | $ | -0- |
December 31, 2013: |  |  | 85,044 |  |  | $ | 4.80 |  | 3.4 years |  | $ | -0- |
For the years ended December 31, 2014 and 2013, the unamortized compensation expense for stock options was $98,000 and $21,000, respectively. Unamortized compensation expense is expected to be recognized over a weighted-average period of 3 years. Warrants Outstanding During 2013 the Company issued 8,333 warrants for services with a fair value of approximately $29,000, which immediately vested. The estimated fair value of the warrant has been calculated based on a Black-Scholes pricing model using the following assumptions: a) fair market value of stock of $3.60; b) exercise price of $3.60; c) Dividend yield of 0%; d) Risk free interest rate of 0.27%; e) expected volatility of 278.17%; f) Expected life of 2 years. Warrants Outstanding (continued) The following table summarizes the warrants transactions:
|  | Warrants Outstanding |  |  | Weighted Average Exercise Price |
Balance, January 1, 2013 |  |  | 25,002 |  |  | $ | 4.50 |
Granted |  |  | 8,333 |  |  | $ | 3.60 |
Exercised |  |  | 8,333 |  |  | $ | 0.90 |
Canceled |  |  | 1 |  |  | $ | 3,803.00 |
Balance, December 31, 2013 |  |  | 25,001 |  |  | $ | 5.20 |
Granted |  |  | - |  |  | $ | - |
Exercised |  |  | 8,333 |  |  | $ | 3.60 |
Canceled |  |  | 16,668 |  |  | $ | 4.20 |
Balance, December 31, 2014 |  |  | - |  |  | $ | - |
Outstanding and Exercisable, |  |  |  |  |  |  |  |
December 31, 2014 |  |  | - |  |  | $ | - |
Outstanding and Exercisable, |  |  |  |  |  |  |  |
December 31, 2013 |  |  | 25,001 |  |  | $ | 5.20 |

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- Definition The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details. + References No definition available. + Details
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