3. Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Black-Scholes option pricing model assumptions

	Three Months ended September 30,					Nine Months ended September 30,
	2013			2012		2013			2012
Risk free interest rate		1.36	%		n/a		0.70 – 1.36	%		0.75 – 2.31	%
Dividend yield		0	%		n/a		0	%		0	%
Expected term	5 years				n/a	5 years			5-10 years
Expected volatility		57.3	%		n/a		57.3 - 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
Options granted		20,000			0.18
Options exercised, expired or forfeited		(226,000	)		0.22
Balance at June 30, 2013		976,500		$	0.29
Options granted		32,000			0.16
Options exercised, expired or forfeited		(7,500	)		0.19
Balance at September 30, 2013		1,001,000		$	0.29

	Options outstanding
	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 granted		42,500			0.15
Options exercised		(5,000	)		0.07
Options expired or forfeited		(20,000	)		0.20
Balance at June 30, 2012		1,057,500		$	0.29
Options exercised, expired or forfeited		(27,000	)		0.30
Balance at September 30, 2012		1,030,500		$	0.29

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
	1,001,000	$	0.29		5.73	$	3,148		765,750	$	0.32		4.61	$	2,708

Nonvested Stock awards

	Nonvested
	Number of shares			Weighted average grant 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
Granted		20,000			0.09
Vested		(39,000	)		0.08
Balance at June 30, 2013		203,250		$	0.08
Granted		32,000			0.08
Balance at September 30, 2013		235,250		$	0.08