EQUITY COMPENSATION AND EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2013

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

NOTE 12- STOCK-BASED COMPENSATION

         Services performed and other transactions settled in the Company's common stock are recorded at the estimated fair value of the stock issued if that value is more readily determinable, than the fair value of the consideration received.

We have stock compensation plans for employees and directors. We recognize the stock-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. All of our stock-based compensation is accounted for as an equity instrument.

-	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Options exercisable and outstanding at December 31, 2012		28,691		$	0.44		5.0		--
Options forfeited and expired		(16,643	)						--
Options exercisable and outstanding at December 31, 2013		12,048		$	0.40		4.0		--

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of our stock exceeded the exercise price of the options at December 31, 2013 for those options for which the quoted market price was in excess of the exercise price ("in-the-money­ options"). There were no options in the money at December 31, 2013.

As of December 31, 2013, total compensation cost of unvested employee stock options is $611,000.  This cost is expected to be recognized through December 31, 2016. We recorded no income tax benefits for stock-based compensation expense arrangements for the years ended December 31, 2013 and 2012, as we have cumulative operating losses.