Quarterly report pursuant to sections 13 or 15(d)

Capital Stock and Stock Options

v2.4.0.6
Capital Stock and Stock Options
 9 Months Ended
Sep. 30, 2012
Capital Stock and Stock Options [Abstract]  
Capital Stock and Stock Options
6.
Capital Stock and Stock Options

During the nine months ended September 30, 2012, we issued 117,873 shares of our Common Stock under our 2003 Outside Directors Stock Plan to our outside directors as compensation for serving on our Board of Directors.  Effective second quarter of 2012, we increased the quarterly fees paid to each of our outside directors from $6,500 to $8,000 for serving as a member of our Board of Directors.  The Audit Committee Chairman receives an additional quarterly fee of $5,500 due to the position's additional responsibility.  In addition, our Research and Development Committee Chairman receives an additional quarterly fee of $1,000 due to the additional time commitment to the position.   Each board member is also paid $1,000 for each board meeting attendance as well as $500 for each telephonic conference call.  As a member of the Board of Directors, each director elects to receive either 65% or 100% of the director's fee in shares of our Common Stock.  The number of shares received is calculated based on 75% of the fair market value of our Common Stock determined on the business day immediately preceding the date that the quarterly fee is due.  The balance of each director's fee, if any, is payable in cash.

The summary of activity of the Company's total stock options under the Company's Stock Plans and a Non-Qualified Stock Option Agreement as of September 30, 2012 as compared to September 30, 2011, and changes during the periods then ended, are presented below.  The Company's Plans consist of the 1993 Non-Qualified Stock Option Plan, the 2004 and 2010 Stock Option Plans, and the 1992 and 2003 Outside Directors Stock Plans:
 
Shares
Weighted Average Exercise Price
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
Options outstanding Janury 1, 2012
3,039,833
$
1.98
 
 
 
Granted
60,000
1.10
 
 
 
Exercised
-
-
 
$
-
Forfeited/Expired
(425,333
 )
1.90
 
 
Options outstanding End of Period (1)
2,674,500
1.97
3.7
$
-
Options Exercisable at September 30, 2012(2)
2,164,500
$
2.10
2.8
$
-
Options Vested and expected to be vested at September 30, 2012
2,674,500
$
1.97
3.7
$
-
 
Shares
Weighted Average Exercise Price
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
Options outstanding Janury 1, 2011
2,755,525
$
2.09
Granted
390,000
1.53
Exercised
-
-
$
-
Forfeited/Expired
(303,692
 )
1.84
Options outstanding End of Period (3)
2,841,833
2.04
3.4
$
-
Options Exercisable at September 30, 2011 (4)
2,365,166
$
2.13
2.9
$
-
Options Vested and expected to be vested at September 30, 2011
2,841,833
$
2.04
3.4
$
-
(1) Options with exercise prices ranging from $1.10 to $2.95
 
(2) Options with exercise prices ranging from $1.41 to $2.95
(3) Options with exercise prices ranging from $1.41 to $2.98
 
(4) Options with exercise prices ranging from $1.42 to $2.98