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5. SHARE BASED PAYMENT
 12 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
5. SHARE BASED PAYMENT

5. SHARE BASED PAYMENT

The Company has outstanding stock options issued to employees and Board members which are exercisable at $0.23 per share. The options vest 20% each year over a five year period and expire after ten years. The total expense recognized during the years ended December 31, 2012 and 2011 in the consolidated statements of operations was $6,000 and $37,000, respectively. There were no options granted during the year's ended December 31, 2012 or 2011.

On June 16, 2010, the Company's stockholders approved the 2010 Equity Incentive Plan, which provided for available awards up to 23,000,000 shares. No awards have been issued pursuant to this plan.

 

A summary of option activity as of December 31, 2012 and 2011, and changes during the years then ended is presented below.

 

            Weighted-      
        Weighted-   Average      
        Average   Remaining     Aggregate
        Exercise   Contractual     Intrinsic
  Options     Price   Life (Years)     Value
                   
Outstanding at December 31, 2010 1,961,400    $ 0.23    7.67    $ - 
Granted -      -     -      - 
Exercised -      -     -      - 
Forfeited (1,576,400)     0.23    -      - 
Outstanding at December 31, 2011 385,000      0.23    6.67      - 
Granted -      -     -       - 
Exercised -      -     -       - 
Forfeited -      -     -      - 
Outstanding at December 31, 2012 385,000    $ 0.23    5.66    $ - 
                   
Vested and expected to vest                  
     at December 31, 2012 385,000    $ 0.23    5.66    $ - 
                   
Exercisable at December 31, 2012 308,000    $ 0.23    5.66    $ - 

 

The aggregate intrinsic value in the table above is before applicable income taxes and represents the closing stock price as of the reporting dates less the exercise price, multiplied by the number of options that have an exercise price that is less than the closing stock price.

 

As of December 31, 2012, there were 77,000 unvested options and total unrecognized stock-based compensation expense related to these options of approximately $2,000, which is expected to be recognized through August 2013.

 

The Company has 575,613 warrants outstanding as of December 31, 2012 which entitle the holders to immediately purchase one share of the Company's common stock at an exercise price of $0.44 per share. The warrants expire on November 13, 2014.