7. Share-based Compensation (Tables)

9 Months Ended

Sep. 30, 2014

Notes to Financial Statements

Summary of stock option activity

	Nine Month Period Ended
	September 30, 2014
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		1,417,309		$	1.36
Granted		85,000			3.49
Exercised		(65,842	)		1.22
Forfeited		(49,002	)		1.52
Expired		(3,124	)		2.23
Outstanding at September 30, 2014		1,384,341		$	1.49
Stock options exercisable at September 30, 2014		1,209,061		$	1.28

Weighted average assumptions of share based payment

	Three Month Period Ended				Nine Month Period Ended
	September 30,				September 30,
	2014		2013		2014		2013
Risk free interest rate		1.93%		2.25%		2.02%		2.25%
Dividend yield		0.0%		0.0%		0.0%		0.0%
Expected term (in years)		7		7		7		7
Volatility		105.20%		105.20%		105.20%		105.20%

Stock compensation expense

	Three Month Period Ended				Nine Month Period Ended
	September 30,				September 30,
	2014		2013		2014		2013
Research and development costs	$	1,064	$	5,893	$	18,550	$	19,801
Sales and marketing costs		7,624		1,265		12,910		2,525
General and administrative costs		46,671		71,294		111,947		120,608
Cost of product sales		18,966		9,782		40,094		32,853
Total	$	74,325	$	88,234	$	183,501	$	175,787