STOCK-BASED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Assumptions used to Estimate Fair Value of Share Options

We estimated the fair value of each option on the grant date using a Black-Scholes option-pricing model with the following weighted average assumptions:

	Year ended December 31, 2015			Year ended December 31, 2014
Dividend yield (1)		0.0	%		0.0	%
Expected volatility (2)		159.8% - 164.5	%		118.5% - 122.24	%
Risk-free interest rates (3)		1.61	%		1.19 – 1.72	%
Expected lives (2)		5 years			4-5 years

(1) We have not paid cash dividends on our common stock since 1981, and currently do not have plans to pay or declare cash dividends. Consequently, we used an expected dividend rate of zero for the valuations.

(2) Estimated based on our historical experience. Volatility was based on historical experience over a period equivalent to the expected life in years.

(3) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the options granted.

Summary of Stock Option Activity under Stock Options

A summary of the status of all our common stock options as of December 31, 2015 and 2014, and changes during the periods then ended is presented below.

	Year ended December 31, 2015							Year ended December 31, 2014
	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Values		Shares			Weighted Average Exercise Price		Aggregate Intrinsic Values
Outstanding at beginning of period		1,692,500		$	0.44	$			1,372,000		$	0.50
Granted		350,000			0.26				362,500			0.39
Forfeited		-							(30,500	)		2.03
Exercised		-							-
Expired or terminated		(4,000	)		5.34				(11,500	)		2.87
Outstanding at end of year		2,038,500		$	0.40	$	100,550		1,692,500		$	0.44	$	80,000
Vested at end of year		1,212,500		$	0.52	$	60,550		844,500		$	0.70	$	32,000
Nonvested at end of year		826,000		$	0.21	$	40,000		848,000		$	0.18	$	48,000
Weighted average fair value per share of options issued during the year				$	0.26						$	0.26

Twenty Eleven Option Plan [Member]

Schedule of Stock Option Plan

The following information relates to the 2011 Option Plan:

	December 31, 2015		December 31, 2014
Common shares reserved for issuance on exercise of options		1,867,500		1,517,500
Shares available for future option grants		0		482,500

Nineteen Ninety Seven Employee Stock Option Plan [Member]

Schedule of Stock Option Plan

The following information relates to the 1997 Option Plan:

	December 31, 2015		December 31, 2014
Common shares reserved for issuance on exercise of options		51,000		55,000
Shares available for future option grants		-		-

Two Thousand Directors' Stock Option Plan [Member]

Schedule of Stock Option Plan

The following information relates to the 2000 Directors' Stock Option Plan:

	December 31, 2015		December 31, 2014
Common shares reserved for issuance on exercise of options		120,000		120,000
Shares available for future option grants		-		-