7. Share-based Compensation (Tables)

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

Summary of stock option activity

	Six Month Period Ended
	June 30, 2014
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		1,417,309		$	1.36
Granted		65,000			3.70
Exercised		(65,842	)		1.22
Forfeited		(49,002	)		1.52
Expired		––			––
Outstanding at June 30, 2014		1,367,465		$	1.38
Stock options exercisable at June 30, 2014		1,192,545		$	1.20

Weighted average assumptions of share based payment

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2014		2013		2014		2013
Risk free interest rate		2.14%		––		2.14%		––
Dividend yield		0.0%		––		0.0%		––
Expected term (in years)		7		––		7		––
Volatility		105.20%		––		105.20%		––

Stock compensation expense

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2014		2013		2014		2013
Research and development costs	$	9,351	$	6,954	$	17,486	$	13,908
Sales and marketing costs		2,563		630		5,286		1,260
General and administrative costs		39,111		1,378		65,276		49,314
Cost of product sales		6,532		11,209		21,128		23,071
Total	$	57,557	$	20,171	$	109,176	$	87,553