Stock Option Plans

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 4. Stock Option Plans

The Company has approved stock options plans covering up to an aggregate of 8,608,833 shares of common stock. Such options may be designated at the time of grant as either incentive stock options or nonqualified stock options. Stock based compensation includes expense charges related to all stock-based awards to employees, directors and consultants. Such awards include options, warrants and stock grants.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following assumptions were used for the six months ended June 30, 2012 and 2011.

	2012	2011
Risk-free interest rate	.92% - 1.10%	2.13% - 2.46%
Expected dividend yield	0%	0%
Expected stock price volatility	75%	75%
Expected life of options	5.75 years	5.75 years

The Company recorded expense for options issued to employees and independent service providers of $19,189 and $21,686 for the three months ended June 30, 2012 and 2011, respectively, and $39,261 and $38,014 for the six months ended June 30, 2012 and 2011, respectively.

A summary of all stock option activity for the six months ended June 30, 2012 follows:

	Number of Options		Weighted Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2011		6,889,500	$	.20
Options granted		150,000	$	.17
Outstanding at June 30, 2012		7,039,500	$	.20		6.0 years	$	564,355
Exercisable at June 30, 2012		5,338,833	$	.22		5.1 years	$	373,630

The weighted average fair value of options granted during the six months ended June 30, 2012 was approximately $.09 ($.06 during the six months ended June 30, 2011). No options were exercised during the six months ended June 30, 2012 and 2011.

At June 30, 2012, there was approximately $91,000 of unrecognized compensation cost related to non-vested options. This cost is expected to be recognized over a weighted average period of approximately two years. The total fair value of shares that vested during the six months ended June 30, 2012 was approximately $62,000.

In July 2012, we granted options to purchase an aggregate of 100,000 shares of our common stock at an exercise price of $.225. These grants were exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended.