STOCK OPTION PLANS

12 Months Ended

Dec. 31, 2014

NOTE 11 - STOCK OPTION PLANS

Our stock-based employee compensation plans described below:

2005 Equity Incentive Plan

We have a stock awards plan, (the 2005 Equity Incentive Plan), under which 500,000 shares of our authorized but unissued common stock were reserved for issuance to employees, consultants, or to non-employee members of the Board or to any board of directors (or similar governing authority) of any affiliate of the Company. The 2005 Equity Incentive Plan replaced the previously approved stock option plan (the 1995 Stock Awards Plan). No further grants can be made under the plan after January 20, 2015.

For the 2005 Equity Incentive Plan, the fair value of options was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in fiscal 2014: dividend yield of 0%; volatility of 102%; risk-free interest rate of 0.79%; and expected lives of 5.5 years. The weighted average fair value of options granted was $0.29 per share during 2014. No options were granted in 2013.

Summarized information for the 2005 Equity Incentive Plan is as follows:

	Options			Weighted- average exercise price
Outstanding options at January 1, 2013		53,275		$	68.00
Expired/forfeited		(21,991	)		87.50
Exercised		(2,500	)		11.50
Outstanding options at December 31, 2013		28,784			59.00
Granted, fair value of $14.50 per share		212,500			18.50
Expired/forfeited		(31,200	)		37.61
Outstanding options at December 31, 2014		210,084			20.29

Exercisable at December 31, 2014		65,034			27.20

There was no intrinsic value related to the outstanding or exercisable options under this plan at December 31, 2013, respectively. The intrinsic value of options under this plan related to the outstanding and exercisable options were $11,000 and $10,000, respectively at December 31, 2013.

The total intrinsic value of options exercised during 2013 was $3,000 and during 2014 was none.

Further information regarding options outstanding under the 2005 Equity Incentive Plan at December 31, 2014 is summarized below:

	Number of		Weighted average				Number of		Weighted-average
Range of exercise prices	options outstanding		Remaining life in years		Exercise price		options exercisable		Remaining life in years		Exercise price

$11.50 - 18.50		200,000		8.7	$	18.33		54,950		8.5	$	17.86
$30.50 - 42.50		4,000		5.1	$	32.19		4,000		5.1	$	32.19
$69.00		1,400		5.0	$	69.00		1,400		5.0	$	69.00
$113.50 – 157.50		4,684		6.5	$	119.99		4,684		6.5	$	119.99
		210,084						65,034

1995 Stock Awards Plan

Under the 1995 Stock Awards Plan, as amended, 10,000 shares of our authorized but unissued common stock were reserved for issuance to optionees including officers, employees, and other individuals performing services for us. At December 31, 2014, there were no additional shares available for grant under the 1995 Stock Awards Plan. A total of 50 options were outstanding and exercisable under this plan at December 31, 2014.

Summarized information for the 1995 Stock Awards Plan is as follows:

	Options			Weighted- average exercise price
Outstanding options at January 1, 2013		790		$	793.50
Expired		(690	)		760.50
Outstanding options at December 31, 2013		100			1,022.50

Expired		(50	)		1,425.00
Outstanding options at December 31, 2014		50			620.00

Exercisable at December 31, 2014		50			620.00

There was no intrinsic value related to outstanding or exercisable options under this plan at December 31, 2014 or 2013.

Further information regarding options outstanding under the 1995 Stock Awards Plan at December 31, 2014 is summarized below:

	Number of		Weighted average				Number of		Weighted-average
Range of exercise prices	Options outstanding		Remaining life in years		Exercise price		options exercisable		Remaining life in years		Exercise price

$620.00		50		1.0	$	620.00		50		1.0	$	620.00

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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