Quarterly report pursuant to sections 13 or 15(d)

10. Stock Options

10. Stock Options
3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
Stock Options

The Company has adopted the provisions of ASC 718 – Compensation which requires companies to measure the cost of employee services received in exchange for equity instruments based on the grant date fair value of those awards and to recognize the compensation expense over the requisite service period during which the awards are expected to vest.


On December 29, 2008, the Company adopted the Pacific Entertainment Corporation 2008 Stock  Option Plan (the “Plan”), which provides for the issuance of qualified and non-qualified stock options to officers, directors, employees and other qualified persons. The Plan is administered by the Board of Directors of the Company or a committee appointed by the Board of Directors. The number of shares of the Company’s common stock initially reserved for issuance under the Plan was 11 million. On September 2, 2011, the shareholders holding a majority of the Company’s outstanding common stock adopted an amendment to the Company’s 2008 Stock Option Plan to increase the number of shares of common stock issuable under the plan to 50 million.  


As of March 31, 2013, options to purchase up to 120,000 shares of the Company’s common stock previously issued in 2009 through 2012 expired due to the termination of employees.


The following schedule summarizes the changes in the Company’s stock option plan for the three months ended March 31, 2013:


                Weighted           Weighted  
    Options Outstanding     Average           Average  
    Number     Exercise     Remaining     Aggregate     Exercise  
    of     Price     Contractual     Intrinsic     Price  
    Shares     per Share     Life     Value     per Share  
Balance at December 31, 2012     15,845,000     $ 0.06-0.55     3.55 years           $ 0.42  
Options Granted                            
Options Exercised                              
Options Expired     (120,000)       0.34-0.55                   0.44  
Balance at March 31, 2013     15,725,000     $ 0.06-0.55     3.30 years           $ 0.42  
Exercisable March 31, 2013     13,925,000     $ 0.06-0.55     2.92 years           $ 0.41