Stockholders' Equity

12 Months Ended

Dec. 31, 2015

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 11 – STOCKHOLDERS’ EQUITY

Common stock issued for services

During 2014, the Company issued 65,500 shares of common stock pursuant to its amended 2010 long-term incentive plan, including 20,000 shares to the chief executive officer, 15,000 shares to the then chief financial officer and 3,500 shares to an independent director.  The shares were valued at fair market value using the reported closing share price on the dates of grant, and the Company recorded stock-based compensation of $362,215 in 2014.

During 2015, the Company issued 84,000 shares of common stock pursuant to its amended 2010 long-term incentive plan, including 20,000 shares to the chief executive officer, 12,000 shares to the chief executive officer’s wife, who the Company employs in its sales department, 18,000 shares to the chief financial officer and 4,000 shares to a director. The shares were valued at fair market value using the reported closing share price on the dates of grant, and the Company recorded stock-based compensation of $285,560 in 2015.

Common stock sold for cash – related parties

On June 2, 2014, the Company sold 290,984 shares of its common stock to its chief executive officer and his wife for $1,623,691. The purchase price per share was the highest closing price per share during the period from the date of the chief executive officer advised the board of his proposal to advance the funds, which was May 2, 2014, until June 2, 2014, when the Company’s independent directors approved the terms of the stock sale.

2010 long-term incentive plan

In January 2010, the Company’s board of directors adopted, and in March 2010, the stockholders approved the Company’s 2010 long-term incentive plan, which initially covered 200,000 shares of common stock.  In October 2013, the Company’s board of directors adopted, and in December 2013, the stockholders approved, an amendment to the 2010 long-term incentive plan to increase the number of shares of common stock subject to the plan, to 500,000 shares. The plan provides for the grant of incentive and non-qualified options and stock grants to employees, including officers, directors and consultants. The plan is to be administered by a committee of not less than three directors, each of whom is to be an independent director.  In the absence of a committee, the plan is administered by the board of directors.   Members of the committee are not eligible for stock options or stock grants pursuant to the plan unless such stock options or stock grant are granted by a majority of the Company’s independent directors other than the proposed grantee.  As of December 31, 2015, the Company had issued a total of 327,491 shares of common stock under the plan.