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SHARE BASED COMPENSATION
 9 Months Ended
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
6. SHARE BASED COMPENSATION
 
 
The Company accounts for the issuance of equity awards to employees in accordance with ASC Topic 718 and 505, which requires that the cost resulting from all share based payment transactions be recognized in the financial statements. These pronouncements establish fair value as the measurement objective in accounting for share based payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all share based payment transactions with employees.
  
All stock-based compensation is included in operating expenses for the periods as follows:
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
 
2014
 
 
2013
 
 
2014
 
 
2013
 
Compensation cost recognized:
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling
 
$
-
 
$
-
 
$
-
 
$
13,100
 
General & Administrative
 
 
4,928
 
 
1,761
 
 
6,927
 
 
4,923
 
Research & Development
 
 
757
 
 
3,538
 
 
3,339
 
 
9,935
 
 
 
$
5,685
 
$
5,299
 
$
10,266
 
$
27,958
 
 
Stock option activity under the 1998, 1999, 2001, 2003 and 2006 Stock Option Plans during the periods indicated below were as follows:
 
 
 
Number of
Shares
Subject to
Issuance
 
Weighted-
average
Exercise
Price
 
Weighted-
average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at December 31, 2013
 
 
40,936
 
$
18.48
 
 
2.42 years
 
$
12,100
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted
 
 
43,622
 
 
4.58
 
 
 
 
 
 
 
Forfeited or expired
 
 
(9,080)
 
$
11.79
 
 
 
 
 
 
 
Exercised
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at September 30, 2014
 
 
75,478
 
$
11.27
 
 
3.75 years
 
$
11,138
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at September 30, 2014
 
 
21,544
 
$
28.70
 
 
1.58 years
 
$
2,784
 
 
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on September 30, 2014. This amount changes based upon the fair market value of the Company’s stock.
 
As of September 30, 2014, there was $324,990 of total unrecognized compensation expense, net of estimated forfeitures, related to all unvested stock options and restricted stock, which is expected to be recognized over a weighted-average period of 2.99 years.
 
As of September 30, 2014, the Company had 3,505,041 options available for future grants under the Plans. The Company uses the Black-Scholes option pricing model to value the options. The Company issued 34,351 shares of restricted stock  units during the quarter ended September 30, 2014.