Shareholders' Equity

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Shareholders' Equity

Note 6: Shareholders’ Equity

In 2005, we adopted a stock option plan for our employees, officers and directors (the “2005 Plan”). At the Annual Shareholders’ Meeting in May 2011, shareholders approved an amendment to the 2005 Plan to increase the number of shares issuable under the plan from 1,500,000 shares to a total of 3,000,000 shares. Options granted before May 2011 are granted at not less than current market price of the stock on the date of grant and are exercisable from five to ten years from the grant date. Options granted after May 2011, pursuant to the plan amendment in May 2011, are required to be granted at not less than the higher of (1) 120% of current market price on the date of grant or (2) the average of market price over the prior 30 trading days. Except for the grant of 30,000 options to one of our board members in 2014 and the grant of 90,000 options to three of our board members in 2013 that vested upon the date of grant, the options granted in 2014 and 2013 vest each month over 48-60 months or upon a change in control.

Stock option activity under the 2005 Plan is as follows:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Maximum number of shares under the plan	3,000,000
Outstanding, December 31, 2012	1,263,350		$	0.22		2.1 years		$	73,600
Granted in 2013	285,000			0.52
Exercised in 2013	(509,830	)		0.21
Cancelled/Expired in 2013	(344,000	)		0.21
Outstanding, December 31, 2013	694,520		$	0.35		3.1 years		$	211,100
Granted in 2014	377,500			0.84
Exercised in 2014	(102,958	)		0.41
Cancelled/Expired in 2014	(50,093	)		0.51
Outstanding, December 31, 2014	918,969		$	0.53		4.4 years		$	374,600
Exercisable, December 31, 2014	442,414		$	0.33		2.0 years		$	269,800
Available for issuance, December 31, 2014	2,081,031

A summary of the status of non-vested shares underlying the options outstanding as of December 31, 2014 under the 2005 Plan is as follows:

	Number of Options		Weighted Average Exercise Price
Non-vested, December 31, 2012	445,192		$	0.22
Granted in 2013	285,000			0.52
Vested in 2013	(304,844	)		0.21
Cancelled/Expired in 2013	(110,663	)		0.21
Non-vested, December 31, 2013	314,685		$	0.35
Granted in 2014	377,500			0.84
Vested in 2014	(194,214	)		0.41
Cancelled/Expired in 2014	(21,416	)		0.51
Non-vested, December 31, 2014	476,555		$	0.53

A summary of additional information related to the options outstanding as of December 31, 2014 under the 2005 Plan is as follows:

Range of Exercise Prices	Number of Options	Weighted Average Remaining Contractual Life		Weighted Average Exercise Price
$0.17-$0.39	353,525	1.2 years 1.2 years	$	0.23
$0.40-$0.62	167,944	3.4 years	$	0.45
$0.63-$0.86	397,500	7.7 years	$	0.83
Total	918,969	4.4 years	$	0.53

We have an Employee Stock Ownership Plan (“Plan”) to provide retirement benefits for our employees. The Plan is designed to invest primarily in our common stock and is non-contributory on the part of our employees. Contributions to the Plan are discretionary as determined by our Board of Directors. We expense the cost of contributions to the Plan. No contributions were made to the Plan in 2014 or 2013. At December 31, 2014 and 2013, a total of 830,682 and 860,053 shares of our common stock, respectively, have been allocated and earned by our employees.