Annual report pursuant to section 13 and 15(d)

10. Stock Options (Tables)

v2.4.0.6
10. Stock Options (Tables)
 12 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
Stock Options Valuation Assumptions

The Company used the Black-Scholes valuation model to estimate the grant date fair value of the options granted in 2011.  The Company used the following assumptions for the 2011 valuations:

 

Risk-free interest rate     .85% – 2.20%  
Expected life in years     5-10  
Dividend yield     0  
Expected volatility     59.19% - 61.68%  

  

The Company used the Black-Scholes valuation model to estimate the grant date fair value of the options granted in 2012.  The Company used the following assumptions for the 2012 valuations:

 

Risk-free interest rate     .64% – .89%  
Expected life in years     5  
Dividend yield     0  
Expected volatility     59.15% - 67.62%  
Stock Option Plan
    Options Outstanding Number     Exercise   Weighted Average Remaining   Aggregate   Weighted Average Exercise  
    of     Price   Contractual   Intrinsic   Price  
    Shares     per Share   Life   Value   per Share  
                             
Balance at December 31, 2010     8,970,000     $0.34-0.55   3.25 years   –   $ 0.44  
Options Granted     6,065,000     0.18-0.50   7.22 years   –     0.39  
Options Exercised     –     –   –   –     –  
Options Expired     (40,000 )   0.34-0.55   –   –     –  
Balance at December 31, 2011     14,995,000     0.18-0.55   4.47 years   –     0.43  
Options Granted     1,105,000     0.06-0.50   5.18 years   –     0.26  
Options Exercised     –     –   –   –     –  
Options Expired     (255,000 )   0.18-0.55   –   –     –  
Balance at December 31, 2012     15,845,000     $0.06-0.55   3.55 years   –   $ 0.42  
                             
Exercisable December 31, 2012     13,045,000     0.06-0.55   2.81 years   –   $ 0.41