Stock Based Compensation

9 Months Ended

Sep. 30, 2011

Stock Based Compensation [Abstract]

Stock Based Compensation

Note 3. Stock Based Compensation

The Company follows FASB ASC 718, Compensation — Stock Compensation, and uses the Black-Scholes option pricing model to calculate the grant-date fair value of an award.

In February 2009, the Board of Directors of the Company, under the Company’s 1999 Stock Option Plan, granted options to acquire 200,000 shares of its common stock to five employees of the Company, options to acquire 75,000 shares of its common stock to two consultants and options to acquire 50,000 shares of its common stock to an officer of the Company at $0.12 per share. The options vested in February 2010 and expire five years from the date of grant. In accordance with the fair value method as described in the accounting requirements of FASB ASC 718, expense of approximately $22,900 was recognized over the vesting period of the options through February 2010 to account for the cost of services received by the Company in exchange for the grant of stock options. There was no compensation expense recognized during the three months and nine months ended September 30, 2011. There was no compensation expense recognized during the three months ended September 30, 2010. During the nine months ended September 30, 2010, compensation expense of approximately $3,000 was recognized. There was no unrecognized portion of expense at September 30, 2011. The Company’s stock option plans terminated prior to 2010, and no further stock options can be granted under the plans; however, stock options granted before the termination dates may be exercised through their expiration dates.

The following table summarizes all stock option activity of the Company since December 31, 2010:

					Weighted Average
	Number		Exercise		Exercise
	of Shares		Price		Price
Outstanding options - December 31, 2010		945,000		$.12 to $.45	$	.29
Options expired		300,000		$.22	$	.22
Outstanding options - September 30, 2011		645,000		$.12 and $.45	$	.32
Weighted average remaining contractual life (years)		1.89
Exercisable options - September 30, 2011		645,000		$.12 and $.45	$	.32