STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2015

Stockholders Equity Note [Abstract]

Stockholders Equity Note Disclosure [Text Block]

NOTE H – STOCKHOLDERS’ EQUITY

[1]  Stock option plans: The Company currently has two non-statutory stock option plans, the Fiscal 2001 Non-statutory Stock Option Plan (the “2001 Plan”) and the 2013 Equity Compensation Plan (the “2013 Plan”). Both plans have been adopted by our Board of Directors and approved by our shareholders. Both the 2001 Plan and the 2013 Plan have options available for future issuance. Any common shares issued as a result of the exercise of stock options would be new common shares issued from our authorized issued shares.

[2]  Stock options: During Fiscal 2015 and Fiscal 2014, the Company issued options to purchase 340,000 and 80,000 shares of common stock, respectively. Options issued in Fiscal 2015 were all issued under the 2001 Plan; 90,000 options were issued to non-employee members of our board of directors and 250,000 options were issued to our Chief Executive Officer, Melissa Waterhouse. Options issued in Fiscal 2014 were issued under the 2001 Plan; that is 80,000 options were issued to non-employee members of our Board of Directors.

As of December 31, 2015, there were 1,435,000 options issued and outstanding under the 2001 Plan. There were no options issued under the 2013 Plan, making the total issued and outstanding options 1,435,000 as of December 31, 2015. Of the total options issued and outstanding, 1,027,000 are fully vested as of December 31, 2015. As of December 31, 2015, there were 2,282,000 options available for issuance under the 2001 Plan and 4,000,000 options available for issuance under the 2013 Plan.

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

	Year Ended December 31,2015						Year Ended December 31, 2014
					Aggregate						Aggregate
			Weighted		Intrinsic				Weighted		Intrinsic Value
			Average		Value as of				Average		as of
			Exercise		December				Exercise		December 31,
	Shares		Price		31, 2015		Shares		Price		2014
Options outstanding at beginning of year		1,295,000	$	0.27				3,316,000	$	0.44
Granted		340,000	$	0.12				80,000	$	0.12
Exercised		0		NA				0		NA
Cancelled/expired		(200,000)	$	0.90				(2,101,000)	$	0.53
Options outstanding at end of year		1,435,000	$	0.14	$	16,400		1,295,000	$	0.27	$	9,400
Options exercisable at end of year		1,027,000	$	0.15				946,000	$	0.31

The following table presents information relating to stock options outstanding as of December 31, 2015:

	Options Outstanding						Options Exercisable
			Weighted		Weighted				Weighted
			Average		Average				Average
Range of Exercise			Exercise		Remaining				Exercise
Price	Shares		Price		Life in Years		Shares		Price
$0.07 - $0.09		280,000	$	0.09		4.92		280,000	$	0.09
$0.12 - $0.16		720,000		0.13		8.40		312,000	$	0.13
$0.18 - $0.26		432,000	$	0.20		6.36		432,000	$	0.20
$1.00 - $1.05		3,000	$	1.05		0.45		3,000	$	1.05
TOTAL		1,435,000	$	0.14		7.09		1,027,000	$	0.15

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

	Year Ended December 31
	2015			2014
Volatility		64	%		73	%
Expected term (years)		10 years			10 years
Risk-free interest rate		1.92% - 2.33	%		2.64	%
Dividend yield		0	%		0	%

The Company recognized $34,000 in share based payment expense related to stock options in Fiscal 2015 and, $40,000 in share based payment expense related to stock options in Fiscal 2014. As of December 31, 2015, there was approximately $32,000 of total unrecognized share based payment expense related to stock options. This cost is expected to be recognized over a period ranging from 2 to 29 months.

[3]            Warrants:

Warrant activity for Fiscal 2015 and Fiscal 2014 is summarized as follows. Any common shares issued as a result of the exercise of warrants would be new common shares issued from our authorized issued shares.

	Year Ended December 31,2015						Year Ended December 31, 2014
					Aggregate						Aggregate
			Weighted		Intrinsic Value				Weighted		Intrinsic Value
			Average		as of				Average		as of
			Exercise		December 31,				Exercise		December 31,
	Shares		Price		2015			Shares	Price		2014
Warrants outstanding at beginning of year		3,303,000	$	0.17				3,303,000	$	0.17
Granted		0		NA				0		NA
Exercised		0		NA				0		NA
Cancelled/expired		918,000	$	0.15				0	$	0.17
Warrants outstanding at end of year		2,385,000	$	0.16		None		3,303,000	$	0.17		None
Warrants exercisable at end of year		2,385,000	$	0.17				3,303,000	$	0.17

The Company recognized $100,000 in debt issuance and deferred finance costs related to the issuance of these warrants outstanding in Fiscal 2015, and $144,000 in debt issuance and deferred finance costs related to the issuance of these warrants outstanding in Fiscal 2014. As of December 31, 2015, there was $0 of total unrecognized debt issuance costs associated with the issuance of the above warrants outstanding due to accelerated amortization of expense in the second quarter of Fiscal 2015 (as a result of early termination of the Imperium line of credit).