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Stockholders' Equity
 6 Months Ended
Jun. 30, 2013
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
4.
Stockholders’ Equity
 
Service-Based Stock Options 
 
A summary of the outstanding service-based options issued by the Company to various employees and consultants is as follows:
 
Balance at December 31, 2012
 
9,955,000
 
Granted
 
250,000
 
Exercised
 
(500,000)
 
Expired
 
(30,000)
 
Balance at June 30, 2013
 
9,675,000
 
 
Stock based compensation expense amounted to $25,500 and $48,500 for the three months ended June 30, 2013 and 2012, respectively. Stock based compensation expense amounted to $52,500 and $48,500 for the six ended June 30, 2013 and 2012, respectively. Such amounts are included in compensation and related expenses in the accompanying statement of operations.
 
In February 2013 the Company issued 250,000 options to a consultant (see note 6). The fair market value of these options amounted to $15,000 which was amortized over three months from February 1, 2013 to April 30, 2013. The fair value of the options was computed using the following Black Scholes model attributes: fair value of the stock at issue date - $0.16, expected life - 5 years, volatility - 50% and risk free interest rate - 2%.

Options exercisable at June 30, 2013 amounted to 9,575,000. All outstanding options have a cashless exercise provision, and certain options provide for accelerated vesting provisions and modifications, as defined, if the Company is sold or acquired. The intrinsic value of options outstanding and exercisable at June 30, 2013 amounted to $769,650. The intrinsic value of options exercised during the six month period ended June 30, 2013 amounted to $100,000.
 
The following is a summary of outstanding service-based options at June 30, 2013:
 
Exercise Price
 
Number of
Options
 
Weighted
Average
Remaining
Contractual
Life
 
 
 
 
 
 
 
 
$0.10
 
$
1,000,000
 
5 years
 
$0.13 - $0.20
 
 
7,675,000
 
9 years
 
$0.40
 
 
1,000,000
 
9 years
 
Total
 
$
9,675,000
 
 
 
 
The remaining unearned compensation on unvested service-based options at June 30, 2013 amounted to $7,000 which will be amortized over the next 12 months. 
 
Performance-Based Stock Options 
 
As of June 30, 2013 the Company granted performance-based options to purchase 6,875,000 shares of common stock at exercise prices ranging from $0.40 to $5.00. The options expire at various dates between 2021 and 2023 and are exercisable upon the Company achieving annual sales revenue of $5,000,000 and $100,000,000. The fair value of these performance-based options aggregated $298,000 and will be expensed over the implicit service period commencing once management believes the performance criteria will be met. Accordingly, at June 30, 2013, the unearned compensation for performance based options is $298,000.
 
Warrants 
 
Warrants outstanding and exercisable amounted to 3,637,720 at June 30, 2013. The weighted average exercise price of warrants outstanding at June 30, 2013 is $0.28. The warrants expire between 2013 and 2015.