Stock-based Compensation

9 Months Ended

Sep. 30, 2013

Stock-based Compensation [Text Block]

Note 4 – Stock-based Compensation

At September 30, 2013 the Company maintained six stock-based compensation plans, which are described more fully in Note 14 to the audited consolidated financial statements for the year ended December 31, 2012, contained in the Company’s most recently filed Annual Report on Form 10-K.

During the first nine months of 2013 the Company issued 150,000 options to an officer of the Company in accordance with his employment agreement, and 50,000 options to the Company’s independent directors as part of their annual compensation. During the first nine months of 2012, the Company issued a total of 990,000 options to officers and employees, including the 625,000 options issued to the former owners of HGP as part of the acquisition, and 50,000 options to the Company’s independent directors.

During the first nine months of 2013, primarily associated with the departure of the Co-CEOs and several employees of HG LLC, 1,530,000 options were forfeited. Additionally, 408,198 vested options that had not been exercised reached maturity and therefore expired. In 2012, employee departures resulted in the forfeiture of 250,000 options, and 1,250 options expired unexercised.

The following summarizes the changes in common stock options for the nine months ended September 30, 2013 and 2012:

				Weighted
				Average
				Exercise
	Options			Price
Outstanding at December 31, 2012	3,898,198		$	1.75
Granted	200,000		$	1.00
Exercised	(30,000	)	$	0.51
Forfeited	(1,530,000	)	$	1.91
Expired	(408,198	)	$	0.85
Outstanding at September 30, 2013	2,130,000		$	1.75
Options exercisable at September 30, 2013	930,000		$	1.69

				Weighted
				Average
				Exercise
	Options			Price
Outstanding at December 31, 2011	3,141,198		$	1.65
Granted	1,040,000		$	2.04
Exercised	(31,750	)	$	0.61
Forfeited	(250,000	)	$	1.83
Expired	(1,250	)	$	1.40
Outstanding at September 30, 2012	3,898,198		$	1.75
Options exercisable at September 30, 2012	1,298,198		$	1.39