Annual report pursuant to Section 13 and 15(d)

K. STOCK OPTIONS AND WARRANTS (Tables)

v2.4.0.8
K. STOCK OPTIONS AND WARRANTS (Tables)
12 Months Ended
Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Employee Stock Options

The following table summarizes the changes in options outstanding and the related exercise prices for the stock options issued to employees of the Company under the Plan.  

 

Options Outstanding     Options Exercisable  
Exercise Prices    

Number

Outstanding

   

Weighted Average

Remaining

Contractual Life

 (Years)

   

Weighted Average

Exercise Price

   

Number

Exercisable

   

Weighted Average

Exercise Price

 
$ 0.01 - $0.15       175,000       3.82     $ 0.14       175,000     $ 0.14  
$ 0.16 - $0.99       1,420,225       8.73       0.18       1,195,225       0.18  
$ 1.00 - $5.99       140,000       2.45       3.29       140,000       3.29  
          1,735,225       7.73     $ 0.43       1,510,225     $ 0.47  

 

Transactions involving stock options issued to employees are summarized as follows:

 

    Number of
Shares
    Weighted Average
Price Per Share
 
Outstanding at January 1, 2012     685,000     $ 1.45  
Granted     915,642       0.19  
Exercised            
Cancelled or expired     (320,000 )     1.16  
Outstanding at December 31, 2012     1,280,642     $ 0.62  
Granted     504,583       0.18  
Exercised            
Cancelled or expired     (50,000 )     2.69  
Outstanding at December 31, 2013     1,735,225     $ 0.43  

Fair value of options granted

The following table summarizes the assumptions used to estimate the fair value of options granted during the years ended December 2013 and 2012, using the Black-Scholes option-pricing model:

 

    2013     2012  
Expected life of option (years)     10       10  
Risk-free interest rate     1.72%       1.64-2.22%  
Assumed volatility     124%       95-105%  
Expected dividend rate     0       0  
Expected forfeiture rate     6%       17%  
Warrants

The following table summarizes the changes in warrants outstanding and the related exercise prices for the warrants issued to non-employees of the Company.

 

      Warrants Outstanding           Warrants Exercisable  
Exercise Prices    

Number

Outstanding

   

Weighted Average

Remaining

Contractual Life

(Years)

   

Weighted Average

Exercise Price

   

Number

Exercisable

   

Weighted Average

Exercise Price

 
$ 0.13       7,230,778       2.11     $ 0.13       7,230,778     $ 0.13  
  0.33       1,628,800       0.88       0.33       1,628,800       0.33  
  3.00       500,336       1.61       3.00       500,336       3.00  
          9,359,914       1.87     $ 0.32       9,359,914     $ 0.32  

  

Transactions involving warrants are summarized as follows:

 

    Number of
Shares
    Weighted Average
Exercise Price
 
Outstanding at January 1, 2012     14,921,920     $ 0.50  
Issued            
Exercised     (3,115,390 )     0.13  
Canceled or expired     (976,114 )     2.20  
Outstanding at December 31, 2012     10,830,416     $ 0.45  
Issued            
Exercised     (86,472 )     0.13  
Canceled or expired     (1,384,030 )     1.36  
Outstanding at December 31, 2013     9,359,914     $ 0.32