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Stock-based Compensation
 9 Months Ended
Sep. 30, 2012
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

7.  Stock-based Compensation

 

On August 15, 2008, the Company granted 25,000 non-qualified stock options to each of its four directors.  These options had a vesting period of one year from the date of grant, and they became fully vested and exercisable on August 15, 2009.  These options expire on August 15, 2013 and have an exercise price of $0.38 per share.  As of September 30, 2012 and December 31, 2011, 100,000 options remain outstanding under this grant.

 

The Company currently has no stock option plans with outstanding options issued to its officers, employees, directors and consultants. The 1998 Stock Option Plan (“1998 Plan”) was established to grant up to 85,000 non-qualified options through May 12, 2008 to employees and other individuals providing services to the Company. Options under the 1998 Plan vested from one year to four years from the date of grant, and vested options must be exercised within 30 days of an employee’s termination. As of September 30, 2012, zero options remained outstanding and vested under the 1998 Plan and as of December 31, 2011, 50,000 options remain outstanding and vested under the 1998 Plan.

 

FASB ASC 718 “Compensation-Stock Compensation” requires entities to estimate the number of forfeitures expected to occur and record expense based upon the number of awards expected to vest.   The outstanding stock options under the 1998 Plan have been fully vested and related expenses were fully amortized for the nine months and three months ended September 30, 2012.

 

For the nine months and three months ended September 30, 2012, option activity was as follows:

 

  Shares     Weighted-
Average
Exercise
Price		     Remaining
Contractual
Term		     Aggregate
Fair Value		  
Outstanding at beginning of period     150,000     $ 0.36       0.79     $ 43,335  
Granted     -       -                  
Expired and forfeited     (50,000 )     0.3275                  
Exercised     -       -                  
Outstanding at end of period     100,000     $ 0.38       0.88     $ 30,120  
                                 
Exercisable at September 30, 2012     100,000     $ 0.38       0.88     $ 30,120  

 

As of September 30, 2012, a summary of options outstanding under the Company’s 1998 Plan and other non-qualified stock options was as follows:

 

Range of
Exercise
Price		     Weighted-Average Remaining
Contractual Life (Years)		     Number
Outstanding		     Weighted-
Average
Exercise
Price		     Number
Exercisable		     Weighted-
Average
Exercise
Price		  
  0.3800       0.88       100,000     $ 0.38       100,000     $ 0.38  

  

In addition, the Company has outstanding 30,000 warrants issued in lieu of consulting fees, which expire in July 2014 and have an exercise price of $0.63 per share.

 

The Company agreed to compensate two of its directors by issuing common stock for services rendered in 2012 and 2011. Both directors are affiliated with the advisory services firm that is currently providing investment banking services to the Company.  Beginning in the second quarter of 2011 and continuing through 2012, the Company agreed to provide one-half of the compensation of a third director in common stock.  The number of shares issued to each director was determined based upon the equivalent cash compensation accrued divided by the closing price of the Company’s common stock on the date that the compensation is fully earned each quarter, which is the last day of such quarter. The Company recorded accrued stock-based compensation of $15,625 as of December 31, 2011 for three directors.  

 

On January 25, 2012, the Company issued 26,042 shares of common stock to each of two directors, and 13,022 shares to another director as compensation for the three months ended December 31, 2011.  These shares, totaling 65,106, were valued at a per share price of $0.24, or a total value of $15,625.

 

On April 4, 2012, the Company issued 27,174 shares of common stock to each of two directors, and 13,588 shares of common stock to another director, as compensation for the three months ended March 31, 2012. These shares, totaling 67,936, were valued at a per share price of $0.23, or a total of $15,625.

 

On July 12, 2012, the Company issued 31,250 shares of common stock to each of two directors, and 15,626 shares of common stock to another director, as compensation for the three months ended June 30, 2012. These shares, totaling 78,126, were valued at a per share price of $0.20, or a total of $15,625.

 

On October 31, 2012, the Company issued 31,250 shares of common stock to each of two directors, and 15,626 shares of common stock to another director, as compensation for the three months ended September 30, 2012. These shares, totaling 78,126, were valued at a per share price of $0.20, or a total of $15,625.