NOTE 5 - STOCK OPTIONS

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

NOTE 5 - STOCK OPTIONS

NOTE 5 – STOCK OPTIONS

During the three months ended March 31, 2014, the Company issued 450,000 options to the Company’s directors. The directors, Bernard Stolar, Robert Fireman and Edward Gildea each received 100,000 options for serving as board members in 2014. Edward Gildea joined the board on January 10, 2014 and received an additional 150,000 options for joining the Company’s board.

During the three months ended March 31, 2014, the company extended the expiration date on the CEO’s 7,500,000 options. They were set to expire on March 31, 2014 but were extended two years to March 31, 2016. No stock options or warrants were exercised during the three months ended March 31, 2014.

During the three months ended March 31, 2013, the Company issued 4,535,714 warrants as part of the senior secured convertible notes. No stock options were issued. During the three months ended March 31, 2013, 523,333 stock options were exercised for cash proceeds of $78,500.

During the three months ended March 31, 2014, the Company recorded an option expense of $1,186,310, equal to the estimated fair value of the options at the date of grants. The fair market value was calculated using the Black-Scholes options pricing model, assuming approximately 0.93% risk-free interest, 0% dividend yield, 210% volatility, and expected life of 5 years for the Director’s options and 2 years for the CEO’s options.

Stock Warrants and Options
Stock warrants/options outstanding and exercisable on March 31, 2014 are as follows:
Exercise Price per Share		Shares Under Option/warrant		Remaining Life in Years
	Outstanding
$	1.00		4,535,714		3.96
$	0.19		200,000		3.75
$	0.155		200,000		4.75
$	0.15		737,500		0.75
$	0.14		250,000		4.97
$	0.115		300,000		3.58
$	0.11		150,000		1.05
$	0.076		7,500,000		2.00
$
	Exercisable
$	1.00		4,535,714		3.96
$	0.19		200,000		3.75
$	0.15		737,500		0.75
$	0.115		300,000		3.58
$	0.11		150,000		1.05
$	0.076		7,500,000		2.00