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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2012
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 4 – Stock-Based Compensation

 

There were no stock options issued to employees during the three months ended March 31, 2012.

  

Total stock-based compensation expense recorded in the statement of operations was $7,200 and $27,000 for the three months ended March 31, 2012 and 2011, respectively.

 

We used the following assumptions to value the stock options granted during the three months ended March 31, 2011:

 

    March 31,  
    2011  
Volatility     156-169%  
Expected dividends     -  
Expected term (in years)     5.79  
Risk-free rate     2.7-2.89%  

 

A summary of the transactions and status of our granted, vested and exercisable options during the three months ended March 31, 2012 follows:

 

                      Weighted-  
                      Average  
          Weighted-           Contractual  
          Average     Aggregate     Life  
          Exercise     Intrinsic     Remaining  
    Shares     Price     Value     in Years  
    (in thousands)           (in thousands)        
Outstanding at December 31, 2011     1,127     $ 0.02                  
Granted     -     $ -                  
Exercised     -     $ -                  
Forfeited     (23 )   $ 0.03                  
Outstanding at March 31, 2012     1,104     $ 0.02     $ -       9.5  
Exercisable at March 31, 2012     526     $ 0.02     $ -       9.3  

 

A summary of the status of our non-vested options as of March 31, 2012 and changes during the three months ended is presented below:

          Weighted  
          Average  
          Grant Date  
Nonvested Shares   Shares     Fair Value  
    (in thousands)        
Nonvested at December 31, 2011     667     $ 0.01  
Granted     -     $ -  
Vested     (66 )   $ 0.04  
Forfeited     (23 )   $ 0.03  
Nonvested at March 31, 2012     578     $ 0.01  

  

The following table summarizes information about our stock options outstanding at March 31, 2012:

 

Options Outstanding     Options Exercisable  
Exercise Prices     Number of Shares     Weighted-
Average
Remaining
Life		     Weighted-
Average Exercise
Price		     Number of Shares     Weighted-
Average
Exercise Price		  
      (in thousands)     (in years)           (in thousands)        
                                 
$0.014 to $0.017       1,000       9.5     $ 0.02       449     $ 0.02  
$0.05       89       9.2     $ 0.05       67     $ 0.05  
$0.09       5       9.3     $ 0.09       5     $ 0.09  
$0.14       10       8.9     $ 0.14       5     $ 0.14  
          1,104       9.5     $ 0.02       526     $ 0.02  

 

There were no stock options exercised during the three months ended March 31, 2012.

 

On April 2, 2012 and April 25, 2012, the Board approved and issued two option agreements for a total of 25,000 shares and 50,000 shares, respectively, of our common stock from our 2011 Stock Incentive Plan at an exercise price of $0.03 per share and $0.01 per share, respectively. Each of these grantees’ options vest over four years from the grant date.