Stock Options and Warrants

3 Months Ended

Mar. 31, 2017

Stockholders Equity Note [Abstract]

Stockholders Equity Note Disclosure [Text Block]

NOTE F – Stock Options and Warrants

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.

During the First Quarter 2017, the Company issued 0 options to purchase shares of common stock. During the First Quarter 2016, the Company issued options to purchase 750,000 shares of common stock under the Fiscal 2001 Plan to its Chief Executive Officer/Principal Financial Officer.

Stock option activity for the First Quarter 2017 and the First Quarter 2016 is summarized as follows (the figures contained within the tables below have been rounded to the nearest thousand):

	First Quarter 2017						First Quarter 2016
					Aggregate						Aggregate
			Weighted		Intrinsic				Weighted		Intrinsic
			Average		Value as of				Average		Value as of
			Exercise		March 31,				Exercise		March 31,
	Shares		Price		2017		Shares		Price		2016
Options outstanding at beginning of period		2,107,000	$	0.13				1,435,000	$	0.14
Granted		0		NA				750,000	$	0.11
Exercised		0		NA				0		NA
Cancelled/expired		0		NA				0		NA
Options outstanding at end of period		2,107,000	$	0.13	$	15,000		2,185,000	$	0.13	$	17,000
Options exercisable at end of period		1,485,000	$	0.13				1,037,000	$	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 the First Quarter 2017 and the First Quarter 2016:

	First Quarter
	2017		2016
Volatility		NA		62	%
Expected term (years)		NA		10 yrs
Risk-free interest rate		NA		1.94	%
Dividend yield		NA		0	%

The Company recognized $11,000 in share based payment expense in the First Quarter 2017 and $19,000 in share based payment expense in the First Quarter 2016. As of March 31, 2017, there was approximately $33,000 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 3 to 14 months.

Warrants

Warrant activity for the First Quarter 2017 and the First Quarter 2016 is summarized as follows:

	First Quarter 2017						First Quarter 2016
					Aggregate						Aggregate
			Weighted		Intrinsic				Weighted		Intrinsic
			Average		Value as of				Average		Value as of
			Exercise		March 31,				Exercise		March 31,
	Shares		Price		2017		Shares		Price		2016
Warrants outstanding at beginning of period		2,060,000	$	0.18				2,385,000	$	0.17
Granted		0		NA				0		NA
Exercised		0		NA				0		NA
Cancelled/expired		0		NA				0		NA
Warrants outstanding at end of period		2,060,000	$	0.18		None		2,385,000	$	0.17		None
Warrants exercisable at end of period		2,060,000	$	0.18				2,385,000	$	0.17

In the First Quarter 2017 and the First Quarter 2016, the Company recognized $0 in debt issuance and deferred finance costs related to the issuance of the above warrants outstanding. As of March 31, 2017, there was $0 of total unrecognized expense.