3. Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Black-Scholes option pricing model assumptions

	Three Months ended March 31,
	2016	2015
Risk free interest rate	1.15% - 1.55%	1.61% - 1.97%
Dividend yield	0%	0%
Expected term	5 years	5-10 years
Expected volatility	34.9% - 35.0%	41.2% - 54.2%

Options outstanding

	Options outstanding
	Number of shares			Weighted average exercise price per share
Balance at December 31, 2015		1,193,000		$	0.24
Options granted		50,000			0.14
Options exercised		-			-
Options expired or forfeited		(3,000	)		0.70
Balance at March 31, 2016		1,240,000		$	0.24

	Options outstanding
	Number of shares			Weighted average exercise price per share
Balance at December 31, 2014		1,264,000		$	0.26
Options granted		20,000			0.20
Options exercised		-			-
Options expired or forfeited		(1,000	)		0.24
Balance at March 31, 2015		1,283,000		$	0.26

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
	1,240,000	$	0.24		4.82	$	7,093		1,145,500	$	0.25		4.49	$	6,073

Nonvested Stock awards

	Nonvested
	Number of shares			Weighted average grant date fair value
Balance at December 31, 2015		49,500		$	0.07
Granted		50,000			0.04
Vested		(5,000	)		0.08
Expired before vesting		-			-
Balance at March 31, 2016		94,500		$	0.05