EQUITY COMPENSATION PLANS

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Note 9. EQUITY COMPENSATION PLANS

In March 2003, the Company’s stockholders approved its 2003 Stock Option and Incentive Plan (the “2003 Plan”). Pursuant to the 2003 Plan, the Company’s Board of Directors (or its committees and/or executive Officers delegated by the Board of Directors) may grant incentive and nonqualified Stock Options, restricted stock, and other stock-based awards to the Company’s employees, Officers, Directors, consultants and advisors. As of September 30, 2014, there were 10,000 restricted shares of Common Stock issued and options to purchase an aggregate of 39,000 shares of Common Stock outstanding under the 2003 Plan and no shares are available for future grants due to the 2003 Plan’s expiration.

In May 2008, the Company’s stockholders approved the 2008 Equity Compensation Plan, as amended (the “2008 Plan”). The 2008 Plan provides for grants of incentive Stock Options to employees and nonqualified Stock Options and restricted stock to employees, consultants and non-employee Directors of the Company. The maximum number of shares available under the 2008 Plan is 10,000,000 shares. As of September 30, 2014, there were 108,550 restricted shares of Common Stock issued and Stock Options to purchase 644,154 shares of Common Stock outstanding under the 2008 Plan and 9,234,296 shares available for future grants.

For the nine months ended September 30, 2014, no Stock Option grants were issued outside of an equity compensation plan.

The following table shows the remaining shares available for future grants for each plan and outstanding shares:

	Equity Compensation Plans						Not Pursuant to a Plan
	2003 Plan			2008 Plan
Shares Available For Issuance
Total reserved for stock options and restricted stock		160,000			10,000,000
Net restricted stock issued net of cancellations		(10,000	)		(108,550	)
Stock options granted		(154,449	)		(1,700,883	)
Add back options cancelled before exercise		79,849			1,043,729
Less shares no longer available due to Plan expiration		(75,400	)		—
Remaining shares available for future grants at September 30, 2014		—			9,234,296
Stock options granted		154,449			1,700,883			310,000
Less:Stock options cancelled		(79,849	)		(1,043,729	)		(188,333	)
Stock options exercised		(35,600	)		(13,000	)		(66,667	)
Net options outstanding before restricted stock		39,000			644,154			55,000
Net restricted stock issued net of cancellations		10,000			108,550			6,485
Outstanding options and restricted shares at September 30, 2014		49,000			752,704			61,485