Stock Options and Warrants

3 Months Ended

Mar. 31, 2014

Stock Options and Warrants [Abstract]

Stock Options and Warrants

4.

Stock Options and Warrants

For the three months ended March 31, 2014 and March 31, 2013, respectively, the Company recorded stock-based compensation expense of $27,305 and $39,478, 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 March 31, 2014 and 2013 for the options is $115,744 and $175,857, respectively, and will be recognized through March 30, 2018.

A summary of the Company's stock option plans as of March 31, 2014, and changes during the three month period then ended is presented below:  

	Three Months Ended March 31,
	Number of Options		Weighted Average Exercise Price
Options outstanding at December 31, 2013		4,194,972	$	.25
Options granted		-		-
Options exercised		-		-
Options cancelled		-		-
Options expired		-		-
Options at end of period		4,194,972		.25
Options exercisable at March 31, 2014		3,280,374	$	.27

Changes in the Company's nonvested options for the three months ended March 31, 2014 are summarized as follows:

	Three Months Ended March 31, 2014
	Number of Options			Weighted Average Exercise Price
Nonvested options at December 31, 2013		1,311,674		$	.18
Options granted		-			.18
Options forfeited		(397,076	)		-
Nonvested options  at March 31, 2014		914,598		$	.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
$.17 - 1.70		4,194,972		5.22	$	.25		3,280,374	$	.27
Totals		4,194,972		5.22	$	.25		3,280,374	$	.27

A summary of the Company's warrant activity as of March 31, 2014 and changes during the three month period then ended is presented below:

	Three months ended March 31, 2014
	Weighted Average Exercise
	Warrants			Price
Warrants outstanding at December 31, 2013		2,271,483		$	.46
Granted		-			-
Exercised		-			-
Expired		(525,000	)		.50
Warrants outstanding at March 31, 2014		1,746,483		$	.45

	Warrants Outstanding
Range of Exercise Price	Number Outstanding		Remaining Average Contractual Life (In Years)		Weighted Average Exercise Price
$0.35 - 0.75		1,746,483		.86	$	.45
Totals		1,746,483		.86	$	.45