3. Stock Options (Tables)

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Black-Scholes option pricing model assumptions

	Three Months ended March 31,
	2013	2012
Risk free interest rate	0.88 – 0.90%	1.20 – 2.31%
Dividend yield	0%	0%
Expected term	5 years	5-10 years
Expected volatility	62.8%	62.8 – 67.9%

Options outstanding

	Options outstanding
	Number of shares		Weighted average price per share
Balance at December 31, 2012		1,032,500	$	0.29
Options granted		160,000		0.16
Options exercised, expired or forfeited		(10,000)		0.15
Balance at March 31, 2013		1,182,500	$	0.28

	Number of shares		Weighted average price per share
Balance at December 31, 2011		1,003,000	$	0.31
Options granted		65,000		0.15
Options exercised, expired or forfeited		(28,000)		0.36
Balance at March 31, 2012		1,040,000	$	0.30

Options Summary

Options outstanding								Options exercisable
Total shares		Weighted average exercise price		Weighted average remaining contractual life in years		Aggregate intrinsic value		Total shares		Weighted average exercise price		Weighted average remaining contractual life in years		Aggregate intrinsic value
	1,182,500	$	0.28		4.90	$	1,770		960,250	$	0.30		3.81	$	1,770

Nonvested Stock awards

	Nonvested
	Number of shares		Weighted average g rant date fair value
Balance at December 31, 2012		112,250	$	0.08
Granted		160,000		0.08
Vested		50,000		0.08
Balance at March 31, 2013		222,250	$	0.08