Stock Options and Warrants

3 Months Ended

Mar. 31, 2015

Stockholders Equity Note [Abstract]

Stockholders Equity Note Disclosure [Text Block]

Note F – Stock Options and Warrants

The Company currently has 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 First Quarter 2015, the Company issued options to purchase 10,000 shares of common stock under the 2001 Plan to its President and former Chairman of the Board. During the First Quarter 2014, the Company did not issue any stock options.

Stock option activity for the First Quarter 2015 and the First Quarter 2014 is summarized as follows (the figures contained within the tables below have been rounded to the nearest thousand):

	First Quarter 2015						First Quarter 2014
	Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value as of March 31, 2015		Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value as of March 31, 2014
Options outstanding at beginning of period		1,295,000	$	0.31				3,316,000	$	0.44
Granted		10,000	$	0.13				0		NA
Exercised		0		NA				0		NA
Cancelled/expired		(57,000)	$	1.01				(110,000)	$	0.97
Options outstanding at end of period		1,248,000	$	0.23	$	13,000		3,206,000	$	0.42	$	12,000
Options exercisable at end of period		889,000	$	0.26				2,706,000	$	0.47

The following table summarizes weighted-average assumptions using the Black-Scholes option-pricing model used on the date of the grants issued during the First Quarter 2015 and the First Quarter 2014:

	First Quarter
	2015			2014
Volatility		64	%		NA
Expected term (years)		10 yrs			NA
Risk-free interest rate		1.92	%		NA
Dividend yield		0	%		NA

The Company recognized $11,000 in share based payment expense in the First Quarter 2015 and $10,000 in share based payment expense in the First Quarter 2014. As of March 31, 2015, there was approximately $17,000 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 5 to 14 months.

Warrants

Warrant activity for the First Quarter 2015 and the First Quarter 2014 is summarized as follows:

	First Quarter 2015						First Quarter 2014
	Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value as of March 31, 2015		Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value as of March 31, 2014
Warrants outstanding at beginning of period		3,303,000	$	0.17				3,303,000	$	0.17
Granted		0		NA				0		NA
Exercised		0		NA				0		NA
Cancelled/expired		0		NA				0		NA
Warrants outstanding at end of period		3,303,000	$	0.17	$	0		3,303,000	$	0.17	$	0
Warrants exercisable at end of period		3,303,000	$	0.17				3,303,000	$	0.17

The Company recognized $25,000 in debt issuance and deferred finance costs related to the issuance of the above warrants outstanding in the First Quarter 2015, and $25,000 in costs in the First Quarter 2014. As of March 31, 2015, there was approximately $75,000 of total unrecognized debt issuance costs associated with the issuance of the above warrants outstanding, which will be expensed ratably over the next 9 months.