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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2012
STOCK-BASED COMPENSATION

NOTE 12 – STOCK-BASED COMPENSATION

 

Pursuant to the Company’s Amended and Restated 2007 Equity Incentive Plan, the aggregate number shares of the Company’s common stock available for grant of stock options and issuance is 4,341,989 shares.

 

The fair value of each option award below is estimated on the date of grant using the Black-Scholes option-pricing model. The risk free rate is based on the yield-to-maturity in continuous compounding of the US Government Bonds with the time-to-maturity similar to the expected tenor of the option granted, volatility is based on the annualized historical stock price volatility of the Company, and the expected life is based on the estimated average of the life of options using the “simplified” method, as prescribed in FASB ASC 718, due to insufficient historical exercise activity during recent years as a basis from which to estimate future exercise patterns.

 

In early March 2012, the Company granted to an independent director an option to purchase 12,500 shares of the Company’s common stock at an exercise price of $2.77 per share and the options vested immediately. The options were valued at $15,300 fair value, with assumed 95.89% volatility, a three-year expiration term with expected tenor of 1.49 years, a risk free rate of 0.21% and no dividend yield. For the three-month period ended March 31, 2012, $15,300 was recognized as general and administrative expenses.

 

The following table summarizes all Company stock option transactions between January 1, 2012 and March 31, 2012.

 

   

Number of Option

and Warrants

Outstanding

    

Number of Option

and Warrants

Non-vested

    

Number of Option

and Warrants

Vested

    

Range of

Exercise Price per Common Share

  
Balance, January 1, 2012     1,144,471       -       1,144,471       $2.41 - $12.60  

Granted during the three-month

period ended March 31, 2012

     12,500       12,500       -       $2.77  

Vested during the three-month period

ended March 31, 2012

     -       (12,500 )     12,500       $2.77  
Balance, March 31, 2012     1,156,971       -       1,156,971       $2.41 - $12.60  

 

    Stock and Warrants Options Outstanding
            Weighted Average   Weighted Average
            Remaining   Exercise Price of
    Outstanding at
March 31, 2012		  

Range of

Exercise Prices

  

Contractual Life

 (Years)

  

Options Currently

 Outstanding
Exercisable and outstanding   1,156,971   $2.41 - $12.60   2.67   $   6.26

 

The weighted average grant-date fair values as at March 31, 2012 and December 31, 2011 were $7.24 and $7.29, respectively.

 

At March 31, 2012, the aggregate intrinsic value of the stock options and warrants was $1,382,612.