Note 12 - Stock Options and Stock Purchase Warrants

12 Months Ended

Dec. 31, 2014

Share-based Arrangements with Employees and Nonemployees [Abstract]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

Note 12.  Stock Options and Stock Purchase Warrants

During the year ended December 31, 2011, the Company adopted the 2011 Incentive Plan under which directors, officers, consultants, advisors and employees of the Company are eligible to receive stock option grants. The Company has reserved 300,000 shares of its Common Stock for issuance pursuant to the 2011 Incentive Plan. Under the 2011 Incentive Plan, options vest and expire pursuant to individual award agreements; however, the expiration date of unexercised options may not exceed ten years from the date of grant. The Company used the Black Scholes method to measure the compensation cost.

During 2012, the Company issued to its Chief Executive Officer, Alex Vaickus, an option grant of 100,000 shares of its Common Stock, under the 2011 Incentive Plan, with an exercise price of $2.34 per share, a five year vesting schedule (vesting in equal annual increments beginning on the first anniversary of the date of the grant) and a ten year term

In November 2014 and September 2013, the Company issued to its Chief Executive Officer, Alex Vaickus, option grants of 100,000 shares in each year of its Common Stock with an exercise price of $5.72 and $3.80 per share, respectively.  The grants have a five year vesting schedule (vesting in equal annual increments beginning on the first anniversary of the date of the grant) and a ten year term. In connection with this grant of options, the Company recognized compensation expense of approximately $189,000 and $159,000 during the years ended December 31, 2014 and 2013, respectively.

Option activity for the years ended December 31, 2014, is summarized as follows:

	Number of Shares		Weighted Average Exercise Price
Outstanding, January 1, 2013		102,500	$	2.40
Granted		100,000		3.80
Canceled		-		-
Outstanding, December 31, 2013		202,500	$	3.07
Granted		100,000		5.72
Canceled		-		-
Outstanding, December 31, 2014		302,500	$	3.95

Total unrecognized compensation on options granted as of December 31, 2014 is $449,000.  Stock options to purchase an aggregate of 75,000 and 30,000 shares, as of December 31, 2014 and 2013, were exercisable and had a weighted average exercise price of $2.80 and $5.72 per share, respectively.