Stock Option Grants / Warrant Grants

9 Months Ended

Sep. 30, 2014

Stockholders Equity Note [Abstract]

Stockholders Equity Note Disclosure [Text Block]

Note F - Stock Option / Warrant Grants

Stock Options

We currently have three non-statutory stock option plans, the Fiscal 2000 Non-statutory Stock Option Plan (the “2000 Plan”), the Fiscal 2001 Non-statutory Stock Option Plan (the “2001 Plan”) and the 2013 Equity Compensation Plan (the “2013 Plan”). 

During the nine months ended September 30, 2014, we issued options to purchase 80,000 shares of common stock to employees and directors, under the 2001 Plan. During the nine months ended September 30, 2013, we issued options to purchase 677,000 shares of common stock to employees and non-employee directors, respectively, under the 2001 Plan.

Stock option activity for the nine months ended September 30, 2014 and the nine months ended September 30, 2013 is summarized as follows:

	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value as of September 30, 2014
Options outstanding at beginning of year	3,316,000	$	0.69
Granted	80,000	$	0.12
Exercised	0		NA
Cancelled/expired	(838,000)	$	1.07
Options outstanding at September 30, 2014	2,558,000	$	0.22	6.63 yrs	$	6,150
Options exercisable at September 30, 2014	2,209,000	$	0.23

The following table summarizes weighted-average assumptions using the Black-Scholes option-pricing model used on the date of the grants issued during the nine months ended September 30, 2014 and 2013:

	Nine months ended September 30,
	2014	2013
Volatility	197%	69% - 85%
Expected term (years)	7.5 yrs	5 – 10 yrs
Risk-free interest rate	0.87%	1.8%
Dividend yield	0%	0%

     

As of September 30, 2014, there was approximately $35,000 of total unrecognized compensation cost related to non-vested stock options, which vest over time. That cost is expected to be recognized over a period ranging from six to twenty months.

Warrants

Warrant activity for the nine months ended September 30, 2014 and the nine months ended September 30, 2013 is summarized as follows:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value as of September 30, 2014
Warrants outstanding at beginning of year		3,303,000	$	0.17
Granted		0		NA
Exercised		0		NA
Cancelled/expired		(79,000)	$	0.14
Warrants outstanding at September 30, 2014		3,224,000	$	0.17	3.80 yrs		NONE
Warrants exercisable at September 30, 2014		3,224,000	$	0.17

As of September 30, 2014, there was approximately $125,000 of total unrecognized debt issuance costs associated with the issuance of the above warrants outstanding, which will be expensed ratably over the next 15 months.