Note 6 - Share-Based Compensation

3 Months Ended

Mar. 31, 2014

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

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

NOTE 6 – Share Based Compensation

During the three months ended March 31, 2014 and 2013, the Company issued 0 and 35,000 stock option awards, respectively. For the three months ended March 31, 2014, 7,000 shares were exercised for proceeds in the amount of $350.  In accordance with the recognition provisions of the Financial Accounting Standards Board’s Accounting Standards Codification 718, Share-Based Payments, the Company recorded the fair value of the options issued at $0.02 per share.  The fair value of the options granted in 2013 was determined using the Black-Scholes option pricing model with the following assumptions: no dividend yield, risk-free interest rate of 0.75%, volatility of 123.3%, and an expected term of 6.5 years.  The Company recognized stock-based compensation expense for stock options of $3,027 and $2,545 for the three months ended March 31, 2014 and 2013, respectively.  As of March 31, 2014 and 2013, there were outstanding options to purchase 638,000 and 725,000 shares of common stock, respectively. The intrinsic value of the options as of March 31, 2014 is $1,372.

As of March 31, 2014 and 2013, there were 103,000 and 245,000 restricted stock awards outstanding, respectively.  The Company recognized stock-based compensation expense for restricted stock of $821 and of $1,328 for the three months ended March 31, 2014 and 2013, respectively.  

As of March 31, 2014, there was $2,480 of unrecognized stock-based compensation expense related to all outstanding equity awards that will be recognized in future periods.