Stock Options and Warrants

9 Months Ended

Sep. 30, 2014

Stock Options and Warrants [Abstract]

Stock Options and Warrants

4.

Stock Options and Warrants

For the three months and nine months ended September 30, 2014 and September 30, 2013, respectively, the Company recorded stock-based compensation expense of $17,050, $29,636, $62,531, and $101,265, 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, 2014 and 2013 for the options is $132,794 and $146,221, respectively, and will be recognized through September 30, 2018.

• In July 2014 an employee  exercised a total of 66,666 employee stock options with an exercise price of $0.14 per share The Company received net proceeds of $9,333 upon the exercise.
• In September 2014 an employee  exercised a total 25,000 employee stock options with an exercise price of $0.21 per share The Company received net proceeds of $5,250 upon the exercise.
• In September 2014 an employee  exercised a total 26,666 employee stock options with an exercise price of $0.14 per share The Company received net proceeds of $3,733 upon the exercise.

On July 11, 2014, the Company board of directors resolved to extend the expiration date by an additional two years past the original individual expiration dates of 482,830 Class A warrants to purchase common stock at a price of $.35 per share, which were previously awarded to certain stockholder as part of private offerings.

A summary of the Company's stock option plans as of September 30, 2014, and changes during the nine-month period then ended is presented below:

	Nine Months Ended September 30,
	Number of  Options			Weighted Average Exercise Price		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value
Options outstanding at December 31, 2013		4,194,972		$	.25
Options granted		30,000			.27
Options exercised		(118,332)			.15
Options forfeited		(45,418	)		.15
Options expired		(452,825	)		.33
Options at end of period		3,608,397			.24
Options exercisable at September 30, 2014		2,776,717			.26		5.07	$	721,946

Changes in the Company's nonvested options for the nine months ended September 30, 2014 are summarized as follows:

	Nine Months Ended September 30, 2014
	Number of  Options			Weighted Average Exercise Price
Nonvested options at December 31, 2013		1,311,674		$	.18
Options granted		30,000			.27
Options vested		(464,576	)		.19
Options forfeited		(45,418	)		.15
Nonvested options at September 30, 2014		831,680		$	.16

	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		3,608,397		5.07	$	.24		2,776,717	$	.26
Totals		3,608,397		5.07	$	.24		2,776,717	$	.26

A summary of the Company's warrant activity as of September 30, 2014 and changes during the nine month period then ended is presented below:

	Nine Months Ended September 30,
	Warrants			Weighted Average Exercise Price		Weighted- average remaining contractual terms (in years)	Aggregate intrinsic value
Warrants outstanding at December 31, 2013		2,271,483		$	.46
Granted		—			—
Exercised		—			—
Expired		(1,266,398	)		.50
Warrants outstanding at September 30, 2014		1,005,085		$	.40	1.53	$	—

	Warrants Outstanding
Range of Exercise Price	Number Outstanding		Remaining Average Contractual Life (In Years)		Weighted Average Exercise Price
$0.35 – 0.75		1,005,085		1.53	$	.40
Totals		1,005,085		1.53	$	.40