Note 5 - Share-Based Compensation

12 Months Ended

Dec. 31, 2013

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

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

Note 5 – Share-Based Compensation

2007 Stock Incentive Option Plan

In October 2007, March 2008 and July 2009, the Company issued options to purchase 420,000, 10,000 and 345,000 shares, respectively, of the Company’s common stock under the Company’s 2007 Stock Incentive Plan.  The options vest over a five year period and are exercisable at $0.20 to $0.62 per share, the last sales price of the Company’s common stock as reported on the OTCBB on the date of grant.  There were 35,000 shares issued during the year ended December 31, 2013. No shares were issued during 2012.  A summary of the status of the Company’s 2007 Stock Incentive Plan as of December 31, 2013 and 2012 is presented below.

	2013
	Options			Weighted Exercise Price		Weighted Life (in years)
Options outstanding - beginning of year		690,000		$	0.39		5.61
Granted		35,000			0.05
Exercised		-			-
Forfeited / Cancelled		(80,000	)		0.37
Options outstanding - end of year		645,000		$	0.38		4.79
Options exercisable - December 31, 2013		605,000		$	0.39		4.56

	2012
	Options		Weighted Exercise Price		Weighted Life (in years)
Options outstanding - beginning of year		690,000	$	0.39		6.60
Granted		-		-
Exercised		-		-
Forfeited / Cancelled		-		-
Options outstanding - end of year		690,000	$	0.39		5.61
Options exercisable - December 31, 2012		588,000	$	0.42		5.46

The aggregate intrinsic value of options outstanding at December 31, 2013 and 2012 under the 2007 Stock Incentive Plan was $1,750 and $0, respectively.

The aggregate intrinsic value of stock options above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the options) that would have been received by the option holders had they exercised their options on December 31, 2013 and 2012.  The aggregate intrinsic value of stock options changes based on the changes in the market value of the Company’s common stock.  The fair value (present value of the estimated future benefit to the option holder) of each option grant is estimated on the date of the grant using the Black-Scholes Merton option pricing model.

There were a total of 40,000 and 102,000 unvested options at December 31, 2013 and 2012, respectively.  The total fair value of unvested options as of December 31, 2013 and 2012 was approximately $1,300 and $19,140, respectively.  For the year ended December 31, 2013 and 2012, the Company recognized share-based compensation expense of $9,552 and $26,159, respectively.  As of December 31, 2013 and 2012, there was approximately $4,181 and $15,839, respectively, of unamortized stock option compensation expense.

Restricted Stock

The Company did not grant any restricted stock awards during 2013 or 2012. During 2013 and 2012 there were restricted shares forfeitures of 27,000 and 5,000, respectively.   There were 56,000 and 59,000 restricted shares that vested during 2013 and 2012, respectively.  For the years ended December 31, 2013 and 2012, the Company recognized $4,015 and $5,275 of share-based compensation expense.  As of December 31, 2013, there were 103,000 restricted stock awards outstanding and $6,328 of unrecognized share-based compensation expense that will be recognized in future periods.