Capital Transaction

3 Months Ended

Mar. 31, 2015

Capital Transaction [Abstract]

Capital Transaction

E)  Capital Transaction

[1]   Stock based compensation:

At March 31, 2015, the Company has one stock-based compensation plan, the 2006 Stock Option Plan, under which the Company is authorized to issue incentive stock options and non-qualified stock options to purchase up to an aggregate of 25,000,000 shares of common stock. At March 31, 2015, there were 8,361,000 options available for grant under this plan.  The exercise price is determined by the Compensation Committee of the Board of Directors at the time of the granting of an option. Options vest over a period not greater than five years, and expire no later than ten years from the date of grant.

There were no options granted during the three month periods ended March 31, 2015 and 2014, respectively.

The following summarizes the activities of the Company’s stock options for the three months ended March 31, 2015 (shares in thousands):

	Shares		Weighted Average  Exercise Price		Weighted Average Remaining  Contractual Term		Aggregate Intrinsic Value
Number of shares under option plans:
Outstanding at January 1, 2015		17,971	$	0.14		1.6 Years
Cancelled, expired or forfeited		738		0.62
Granted		-		-		-
Outstanding at March 31, 2015		17,233	$	0.12		1.3 Years	$	0
Exercisable at March 31, 2015		17,133	$	0.12		1.3 Years
Vested and expected to vest at March 31, 2015		17,133	$	0.12		1.3 Years	$	0

As of March 31, 2015, all stock compensation related to outstanding awards has been recognized.

The Company has recorded a charge of $1,000 in general and administrative expense for the three months ended March 31, 2014 for the pro-rata share of the fair value of the unvested options granted during September 2011 that vest through September 2014. There was no charge recorded for the current year period.

At March 31, 2015, the Company had 100,000 options outstanding which vest upon the achievement of certain performance criteria. These options have a term of 10 years from date of grant and an exercise price of $0.80.

[2]   Warrants:

As of March 31, 2015, the following warrants were outstanding to purchase up to 6,276,306 shares of the Company’s Common Stock:  

6,276,306	exercisable at $0.055 per share which expire on September 30, 2016
6,276,306