3. Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

Notes to Financial Statements

Black-Scholes option pricing model assumptions

Risk free interest rate		0.88 – 0.90	%
Dividend yield		0	%
Expected term	5 years
Expected volatility		62.8	%

Options outstanding

	Options outstanding
	Number of shares		Weighted average exercise price per share
Balance at December 31, 2013		1,187,000	$	0.26
Options granted, exercised, expired or forfeited		--		--
Balance at March 31, 2014		1,187,000	$	0.26

	Options outstanding
	Number of shares			Weighted average exercise 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 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
	1,187,000	$	0.26		6.00	$	60,518		910,750	$	0.30		4.98	$	35,483

Nonvested Stock awards

	Nonvested
	Number of shares			Weighted average grant date fair value
Balance at December 31, 2013		431,250		$	0.08
Vested		(155,000	)		0.08
Balance at March 31, 2014		276,250		$	0.08