Annual report pursuant to section 13 and 15(d)

STOCK-BASED COMPENSATION (Tables)

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2013

Assumptions used to value the options granted

The fair value of the director stock options granted (no employees were granted options in 2013 and 2012) and the related assumptions used in the Black-Scholes option pricing model used to value the options granted for fiscal year 2013 and 2012 were as follows after giving effect to the reverse stock split:

	Outside Director Stock Options Granted
	For Year Ended
	2013		2012
Weighted-average fair value per share	$	2.06	$	3.55
Risk -free interest rate ⁽¹⁾		2.66% - 2.92%		1.75%
Expected volatility of stock ⁽²⁾		58.88% - 59.76%		56.74%
Dividend yield		None		None
Expected option life (in years) ⁽³⁾		10.0		10.0

Stock-based compensation recognized for employee and director stock options

The following table summarizes stock-based compensation recognized for the fiscal year 2013 and 2012.

	Year Ended
	2013		2012
Employee Stock Options	$	80,000	$	140,000
Director Stock Options		45,000		51,000
Total	$	125,000	$	191,000

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

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