Note D - Stock Based Compensation

12 Months Ended

Dec. 31, 2013

Note D – Stock Based Compensation

As part of certain employment agreements, we have issued stock options. These are generally approved by the Board of Directors. The exercise price is set by the average closing price of our stock the ten days prior to approval and the grant date fair value is estimated using a Black Scholes pricing model with the following assumptions:

Volatility	=	225%
Expected term	=	3 years
Dividend yield	=	0
Risk free rate	=	.30%

The following table represents the option activity for the periods presented:

	Number of Options

Balance 12/31/11		410,201
Granted		-
Exercised		-
(Forfeited/expired)		(152,019	)
Balance 12/31/12		258,182
Granted		-
Exercised		-
(Forfeited/expired)		(258,182	)
Balance 12/31/13		-

As of December 31, 2012, all of the options were vested and exercisable with a weighted average exercise price of $.68 and remaining terms between 2 weeks and 7 months. During 2013, the outstanding options either expired or were forfeited. The total intrinsic value of the options outstanding as of December 31, 2013 was $0.

- 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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