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STOCK OPTION PLANS
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12 Months Ended |
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Dec. 31, 2013
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| STOCK OPTION PLANS [Abstract] | |
| STOCK OPTION PLANS |
NOTE 11 - STOCK OPTION PLANS
We account for stock based compensation expense in accordance with FASB ASC 718, Stock Based Compensation. We have two stock-based compensation plans under which incentive and non-incentive qualified stock options and restricted shares may be granted to employees, directors and consultants. We measure the cost of the employee/director/consultant services received in exchange for an award of equity instruments based on the grant date fair value of the award.
Our stock-based employee compensation plans described below:
2005 Equity Incentive Plan
We have a stock awards plan, (the 2005 Equity Incentive Plan), under which 25,000,000 shares of our authorized but unissued common stock were reserved for issuance to employees, consultants, or to non-employee members of the Board or to any board of directors (or similar governing authority) of any affiliate of the Company. The 2005 Equity Incentive Plan replaced the previously approved stock option plan (the 1995 Stock Awards Plan).
For the 2005 Equity Incentive Plan, the fair value of options was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in fiscal 2012: dividend yield of 0%; volatility of 98%; risk-free interest rate of 0.45%; and expected lives of 5.5 years. The weighted average fair value of options granted was $0.29 per share during 2012. No options were granted in 2013.
Summarized information for the 2005 Equity Incentive Plan is as follows:
Weighted-
average
exercise
Options price
Outstanding options at January 1, 2012 2,266,784 $ 2.17
Granted, fair value of $ 0.29 per share 1,235,000 0.39
Exerpiredforfeited (838,000) 2.14
Outstanding options at December 31, 2012 2,663,784 1.36
Expired/forfeited (1,099,584) 1.75
Exercised (125,000) 0.23
Outstanding options at December 31, 2013 1,439,200 1.18
Exercisable at December 31, 2013 1,407,950 1.20
The intrinsic value of options under this plan related to the outstanding and exercisable options were $11,000 and $10,000 at December 31, 2013, respectively. The intrinsic value of options under this plan related to the outstanding and exercisable options were $7,000 and $1,000, respectively at December 31, 2012.
The total intrinsic value of options exercised during 2013 was $3,000 and during 2012 was none.
Further information regarding options outstanding under the 2005 Equity Incentive Plan at December 31, 2013 is summarized below:
Number of Weighted average Number of Weighted-average
options Remaining Exercise options Remaining Exercise
Range of exercise prices outstanding life in years price exercisable life in years price
$0.23 525,000 9.0 $0.23 493,750 9.0 $0.23
$0.61 - 0.85 320,000 7.4 $0.63 320,000 7.4 $0.63
$1.38 70,000 6.0 $1.38 70,000 6.0 $1.38
$2.27 – 3.15 524,200 7.7 $2.43 524,200 7.7 $2.43
1,439,200 1,407,950
1995 Stock Awards Plan
Under the 1995 Stock Awards Plan, as amended, 500,000 shares of our authorized but unissued common stock were reserved for issuance to optionees including officers, employees, and other individuals performing services for us. At December 31, 2013, there were no additional shares available for grant under the 1995 Stock Awards Plan. A total of 5,000 options were outstanding under this plan at December 31, 2013.
Options granted under all the plans generally vest ratably over a four to five year period and are generally exercisable over a ten-year period from the date of grant. Stock options were generally granted with an exercise price equal to the market value at the date of grant.
Summarized information for the 1995 Stock Awards Plan is as follows:
Weighted-
average
exercise
Options price
Outstanding options at January 1, 2012 57,500 $ 16.58
Expired (18,000) 18.14
Outstanding options at December 31, 2012 39,500 15.87
Expired (34,500) 15.21
Outstanding options at December 31, 2013 5,000 20.45
Exercisable at December 31, 2013 5,000 20.45
There was no intrinsic value related to outstanding or exercisable options under this plan at December 31, 2013 or 2012.
Further information regarding options outstanding under the 1995 Stock Awards Plan at December 31, 2013 is summarized below:
Number of Weighted average Number of Weighted-average
optionsRemaining Exercise options Remaining Exercise
Range of exercise prices outstanding life in years price exercisable life in years price
$12.40 2,500 2.0 $12.40 2,500 2.0 $12.40
$28.50 2,500 1.0 $28.50 2,500 1.0 $28.50
5,000 5,000
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