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Note O - Stock Options
 3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]    
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

3.                      SHARE BASED COMPENSATION


The following table presents share-based compensation expenses for continuing operations included in the Company’s unaudited condensed consolidated statements of operations:


   

Three Months Ended March 31,

 
   

2013

   

2012

 
                 
                 

Selling, general and administrative

  $ 11,121     $ 2,223  

Research, development and engineering

    1,326       18,518  
    $ 12,447     $ 20,741  

NOTE O—STOCK OPTIONS


1999 Stock Option Plan


During 1999, the Board of Directors of the Company adopted the 1999 Stock Option Plan (the 1999 Plan). The 1999 Plan was not presented to stockholders for approval and thus incentive stock options are not available under the plan. Under the 1999 Plan, 2,000,000 shares of common stock are reserved for issuance to employees, officers, directors, and consultants of the Company at exercise prices which may not be below 85% of fair market value. The term of nonstatutory stock options granted may not exceed ten years. Options issued under the Plan vest pursuant to the terms of stock option agreements with the recipients. In the event of a change in control, as defined, all options outstanding vest immediately. The 1999 Plan expired in August 2009.


2004 Stock Option Plan


On October 12, 2004, the Board of Directors of the Company approved the 2004 Stock Option Plan (the 2004 Plan). The 2004 Plan has not yet been presented to stockholders for approval and thus incentive stock options are not available under this plan. Under the terms of this plan, 4,000,000 shares of common stock are reserved for issuance to employees, officers, directors, and consultants of the Company at exercise prices which may not be below 85% of fair market value. The term of stock options granted may not exceed ten years. Options issued under the Plan vest pursuant to the terms of stock option agreements with the recipients. In the event of a change in control, as defined, all options outstanding vest immediately. The Plan expires in October 2014.


Non-Plan Stock Options


Periodically, the Company has granted options outside of the 1999 and 2004 Plans to various employees and consultants. In the event of change in control, as defined, certain of the non-plan options outstanding vest immediately.


Stock Option Activity


Information summarizing option activity is as follows:


   

Number of Options

 

   

Weighted

average

exercise 

   

Weighted

average

remaining

life 

   

Aggregate

intrinsic 

 
   

1999 Plan

   

2004 Plan

   

Non Plan

   

Total

   

price

   

(in years)

   

value

 
                                                         

Outstanding, as of December 31, 2010

    500,000       2,580,689       1,329,841       4,410,530     $ 0.25                  
                                                         

Granted

    —       845,000       —       845,000       0.14                  

Exercised

    —       —       —       —       —                  

Forfeited

    —       (210,000

)

    —       (210,000

)

    0.14                  

Expired

    —       (383,853

)

    (257,265

)

    (641,118

)

    0.36                  

Outstanding, as of December 31, 2011

    500,000       2,831,836       1,072,576       4,404,412     $ 0.22                  
                                                         

Granted

    —       600,000       —       600,000       0.09                  

Exercised

    —       —       —       —       —                  

Forfeited

    —       (164,623

)

    (365,378

)

    (530,001

)

    0.09                  

Expired

    —       (504,941

)

    (707,198

)

    (1,212,139

)

    0.30                  

Outstanding, as of December 31, 2012

    500,000       2,762,272       —       3,262,272       0.16       4.21     $ 2,325  

Vested or expected to vest at December 31, 2012

                            2,972,404       0.16       4.04     $ 2,325  

Exercisable at December 31, 2012

                            2,230,594       0.18       3.43     $ 2,325  

The options outstanding and exercisable at December 31, 2012 were in the following exercise price ranges:


 

 

Options Outstanding 

  

Options Exercisable 

  

Range of exercise prices 

  

Number of

shares 

  

Weighted

average

exercise

price 

  

Weighted

average

remaining 

life (in years) 

  

Number

exercisable 

  

Weighted

average

exercise

price 

  

 

$ 0.08

 -

0.21

 

2,852,272

  

$

0.11

  

4.23

 

1,820,594

  

$

0.12

  

 

 0.22

 -

0.40

 

70,000

  

0.40

  

4.02

 

70,000

  

0.40

  

 

 0.41

 -

0.68

 

340,000

  

0.46

  

4.02

 

340,000

  

0.46

  

 

$ 0.07

 -

0.68

 

3,262,272

  

 

  

  

 

2,230,594

  

 

  


The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $0.09 as of December 31, 2012, which would have been received by the option holders had all option holders exercised their options as of that date. The total number of in-the-money options exercisable as of December 31, 2012 was 775,000.


The weighted average fair value of options granted during the years ended December 31, 2012 and 2011 was $0.05 and $0.11 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2012 and 2011 was $0. The total fair value of shares vested during the years ended December 31, 2012 and 2011 was $70,026 and $52,879 respectively.


As of December 31, 2012 future compensation cost related to nonvested stock options is $47,220 and will be recognized over an estimated weighted average period of 1.55 years.