Stock Options and Warrants

9 Months Ended

Sep. 30, 2013

Stock Options [Abstract]

Stock Options and Warrants

4.

Stock Options and Warrants

For the three months and nine months ended September 30, 2013 and September 30, 2012, respectively, the Company recorded stock-based compensation expense of $29,636, $101,265, $40,672 and $131,105 respectively, relating to employee stock options.   

Stock options and warrants issued to consultants and other non-employees as compensation for services provided to the Company are accounted for based on the fair value of the services provided or the estimated fair market value of the option or warrant, whichever is more reliably measurable in accordance with FASB ASC 505, Equity, and FASB ASC 718, Compensation - Stock Compensation. The related expense is recognized over the period the services are provided. Unrecognized expense remaining at September 30, 2013 and 2012 for the options is $146,221 and $220,122, respectively, and will be recognized through September 30, 2017.

A summary of the Company's stock option plans as of  September 30, 2013, and changes during the nine-month period then ended is presented below:

	Nine Months Ended September 30, 2013
	Number of Options			Weighted Average Exercise Price
Options outstanding at December 31, 2012		3,863,972		$	.27
Options granted		15,000			.18
Options exercised		-			-
Options cancelled		-			-
Options expired		(169,000	)		1.66
Options at end of period		3,709,972			.26
Options exercisable at September 30, 2013		2,853,298		$	.28

Changes in the Company's unvested options for the nine months ended September 30, 2013 are summarized as follows:

	Nine Months Ended September 30, 2013
	Number of Options			Weighted Average Exercise Price
Nonvested options at December 31, 2012		1,702,000		$	.13
Options granted		15,000			.15
Options vested		(860,326	)		(.17	)
Options cancelled		-			-
Non-Vested options at September 30, 2013		856,674		$	.18

	Options Outstanding						Options Exercisable
Range of Exercise Price	Number Outstanding		Remaining Average Contractual Life (In Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$0.11 - $1.70		3,709,972		5.95	$	.26		2,853,298	$	.28
Totals		3,709,972		5.95	$	.26		2,853,298	$	.29

Warrants

At September 30, 2013, 2,829,816 warrants with an average exercise price of $0.77 remain outstanding and were fully vested.

A summary of the Company's warrant activity as of September 30, 2013 and changes during the nine month period then ended is presented below:

	Nine months ended September 30, 2013
	Weighted Average Exercise
	Warrants			Price
Warrants outstanding at December 31, 2012		3,899,758		$	.77
Granted		-			-
Exercised		-			-
Expired		(1,069,942	)		(1.25	)
Warrants outstanding at September 30, 2013		2,829,816		$	.58

		Warrants Outstanding
Range of Exercise Price		Number Outstanding		Remaining Average Contractual Life (In Years)		Weighted Average Exercise Price
$	0.35 - $0.75		2,446,483		1.06	$	.48
$	1.25		383,333		.08		1.25
Totals			2,829,816		.92	$	.58