4. SHARE BASED PAYMENT

12 Months Ended

Dec. 31, 2013

Notes to Financial Statements

4. SHARE BASED PAYMENT

4. 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. As of December 31, 2013, there were no unvested options. The total expense recognized during the years ended December 31, 2013 and 2012 in the consolidated statements of operations was $2,000 and $6,000, respectively. There were no options granted during the year's ended December 31, 2013 or 2012.

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, 2013 and 2012, 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, 2011	385,000	$	0.23	6.67	$	-
Granted	-		-	-		-
Exercised	-		-	-		-
Forfeited	-		-	-		-
Outstanding at December 31, 2012	385,000		0.23	5.66		-
Granted	-		-	-		-
Exercised	-		-	-		-
Forfeited	-		-	-		-
Outstanding at December 31, 2013	385,000	$	0.23	4.66	$	-
Vested and expected to vest
at December 31, 2013	385,000	$	0.23	4.66	$	-
Exercisable at December 31, 2013	385,000	$	0.23	4.66	$	-

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.

The Company has 575,613 warrants outstanding as of December 31, 2013 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.