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STOCK OPTION PLAN
 3 Months Ended
Mar. 31, 2013
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
NOTE 4 STOCK OPTION PLAN

 

The Company has also granted non-qualified stock options to employees and contractors. All non-qualified options are generally issued with an exercise price equal to the closing price of the Common Stock on the date of the grant. Options may be exercised up to ten years following the date of the grant, with vesting schedules determined by the Company upon grant. Vesting periods range from 100% fully vested upon grant to a range of four to five years. Vested options may be exercised up to three months following date of termination of the relationship. The fair values of options are determined using the Black-Scholes option-pricing model. The estimated fair value of options is recognized as an expense on the straight-line basis over the options’ vesting periods.

 

Stock option transactions during the three months ended March 31, 2013 were as follows:  

 

    Three months ended March 31, 2013  
    Shares     Weighted -
Average
Exercise Price		  
Outstanding at Beginning of Year     5,038,512     $ 0.91  
Granted     55,000       1.70  
Exercised     (42,000 )     1.00  
Forfeited or Canceled     (95,625 )     1.02  
Outstanding at End of Period     4,955,887       0.91  
                 
Options Exercisable at Period-End     3,628,628       1.25  
Weighted-Average Fair Value of Options Granted During the Period   $ 0.27          

 

Information with respect to stock options outstanding and exercisable as of March 31, 2013 is as follows:

 

      Options Outstanding     Options Exercisable  
      Number     Weighted -           Number        
      Outstanding     Average     Weighted -     Exercisable     Weighted -  
Range of     at     Remaining     Average     At     Average  
Exercise     March 31,     Contractual     Exercise     March 31,     Exercise  
Prices     2013     Life     Price     2013     Price  
  $ 0.10 - $1.80       5,025,887       8.2 Years     $ 0.92       3,628,628     $ 1.25  
                                             

 

The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for options granted.

 

    2013  
Expected Life     5 yrs  
Dividend Yield     0 %
Expected Volatility     26.28 %
Risk-Free Interest Rate     0.85 %

 

Expected volatility for 2013 was estimated by using the Dow Jones U.S. Industry indexes sector classification methodology for industries similar to the Company. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the grant date. The expected life of the options is based on management’s estimate using historical experience.