XML 52 R20.htm IDEA: XBRL DOCUMENT

6. Share-based Compensation (Tables)

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Weighted average assumptions of share based payment

The fair value of share-based payments made to employees and non-employee directors was estimated on the measurement date using the Black-Scholes model using the following weighted average assumptions:

		Three Month Period Ended
		March 31,
		2013				2012
Risk free interest rate			––				0.83%
Dividend yield			––				0.0%
Expected term (in years)			––				6.0
Volatility			––				101%

Stock compensation expense

We recorded stock compensation expense of $67,382 and $46,688 for the three month periods ended March 31, 2013 and 2012, respectively, as follows:

		Three Month Period Ended
		March 31,
		2013				2012
Research and development costs		$	6,954			$	6,368
Sales and marketing costs			630				––
General and administrative costs			47,936				37,299
Cost of product sales			11,862				3,021
Total		$	67,382			$	46,688

Summary of stock option activity

The following is a summary of stock option activity for the three month period ended March 31, 2013, and the status of stock options outstanding at March 31, 2013:

		Three Month Period Ended
		March 31, 2013
						Wtd. Avg.
						Exercise
		Shares				Price
Outstanding at beginning of year			20,379,602			$	0.09
Granted			––				––
Exercised			(355,856	)			(0.08	)
Forfeited			(150,000	)			(0.08	)
Outstanding at March 31, 2013			19,873,746			$	0.09

Stock options exercisable at March 31, 2013			15,285,695			$	0.08

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References+ Details