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Stock Options and Warrants

12 Months Ended

Dec. 31, 2011

NOTE 11 - Stock Options and Warrants

Stock Options Plan

The activity in the Company’s stock option plan was as follows for the dates indicated:

	Number of Options		Range of Exercise Prices		Weighted Average Exercise Price

Balance outstanding, January 1, 2010	838,745		$	2.00-37.50	$	3.72

Expired in 2010	(570	)	17.00-37.50		25.18

Balance outstanding, December 31, 2010	838,175		$	2.00-22.00	$	3.75

Expired in 2011	(500	)	3.00-12.00		5.40

Balance outstanding, December 31, 2011	837,675		$	2.00-22.00	$	3.80

Exercisable, December 31, 2011	735,175		$	2.00-22.00	$	3.84

On January 4, 2008, pursuant to the Company’s 2004 Equity Incentive Plan and as part of his compensation package, we granted our Managing Director of Operations, who is a resident of the Czech Republic and is not a named executive officer of the Company, options to purchase 10,000 shares of the Company’s Common Stock. The seven-year options vest in four equal parts, with the first part vesting on the date of grant and each subsequent part on the next succeeding anniversary of the grant date. The exercise price for these options, vested and unvested, is $4.10 per share, the market closing price at the date of grant.

On May 26, 2009, we also granted options to purchase 410,000 shares of the Company’s Common Stock to 10 KMEs. The seven-year options vest in four equal parts, with the first part on the date of grant and each subsequent part on the anniversary of the grant date. The exercise price for these options, vested and unvested, is $3.50 per share, the market closing price at the date of grant.

In each instance, the option exercise price per share was equal to or above the market value of the underlying stock on the date of grant. Options generally expire between five and ten years after the date of grant or earlier upon termination of employment, as defined in the plan or agreements.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the below assumptions related to risk-free interest rates, expected dividend yield, expected lives and expected stock price volatility. No new grants were issued in 2011 and 2010.

Additional information about the Company’s outstanding stock options at December 31, 2011 is as follows:

	Options Outstanding
		Weighted
		Average
		Remaining	Weighted
		Contractual	Average
Range of	Number of	Life	Exercise
Exercise Prices	Shares	(in Years)	Price

$0.01 to $2.50	60,150	2.59	$	2.50
$2.51 to $3.50	413,150	5.39	$	3.50
$3.51 to $4.50	235,525	1.95	$	3.94
$4.51 to $5.00	1,500	1.53	$	5.00
$5.01 to $10.00	126,850	3.79	$	5.07
$10.01 to $25.00	500	1.80	$	15.50

	837,675	3.97	$	3.80

Warrants

The activity in the Company’s warrants is as follows:

Exercise Price

Balance,

per

Warrants

January 1,

Granted

Exercised

Expired

December 31,

Granted

Exercised

Expired

December 31,

Warrants

Expiring

2010 (1)

2010

2011

3.00

11/30/2014

75,000

—

75,000

—

75,000

(1) On November 30, 2009, TWC granted 75,000 five-year warrants to purchase TWC Common Stock at the then market price of $3.00 per share, in connection with the Company’s engagement of a capital markets advisor, Hurricana Capital LLC. The warrants vest over two-year period, with the first of three equal parts vested immediately upon the grant date, and the remaining parts upon the next succeeding anniversary dates of the grant. As of December 31, 2011, all warrants have been vested. (See also “Note 8 — Stockholders’ Equity” above).