Annual report pursuant to Section 13 and 15(d)

EMPLOYEE STOCK OPTIONS (Tables)

v2.4.0.6
EMPLOYEE STOCK OPTIONS (Tables)
12 Months Ended
Dec. 31, 2012
EMPLOYEE STOCK OPTIONS (Tables)  
Employee Stock Options and related prices

Following is a table reflecting the issuances during 2011 and 2012 and their related exercise prices:

 

Grant date

 

 # of options

 

 Exercise price

December 1, 2011

 

 960,000

 

$

2.00

 

 

 

 

 

 

July 1, 2012

 

75,000

 

 

4.50

September 1, 2012

 

50,000

 

 

4.50

October 1, 2012

 

40,000

 

 

4.50

 

 

 

 

 

 

 

 

1,125,000

 

 

 

Stock option activity and changes

A summary of the status of the stock options as of December 31, 2012 and changes during the years ended December 31, 2012 and 2011 is as follows:

 

 

2012

 

2011

 

Options

 Weighted-Average Exercise Price

 

Options

Weighted-Average Exercise Price

Outstanding at beginning of the year

1,125,000

$

2.00

 

-

$

-

Issued

165,000

 

4.50

 

1,125,000

 

2.00

Forfeited

(165,000)

 

2.00

 

-

 

-

Exercised

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

Outstanding at end of year

1,125,000

$

2.37

 

1,125,000

$

2.00

 

 

 

 

 

 

 

 

Exercisable at end of  year

200,000

$

2.00

 

-

$

-

 

 

 

 

 

 

 

 

Weighted average fair value of

 

 

 

 

 

 

 

  options granted during the year

 

$

4.26

 

 

$

2.32

Weighted-average assumptions used for options granted

The following are the Black-Scholes weighted-average assumptions used for options granted during the periods ended December 31, 2012 and 2011:

 

 

 

October 1,

 

September 1,

 

July 1,

 

December 1,

 

 

2012

 

2012

 

2012

 

2011

 

 

 

 

 

 

 

 

 

Risk free interest rate

 

0.25%

 

0.80%

 

0.67%

 

0.97%

Expected life (years)

 

5.75

 

6.5

 

6.5

 

6.5

Dividend yield

 

-

 

-

 

-

 

-

Volatility

 

147%

 

153%

 

158%

 

32%

Stock options outstanding

The following table summarizes information related to the Company’s stock options outstanding at December 31, 2012:

 

 

 

Options Outstanding

 

 

 Exercise price

 

 Number Outstanding

 

Weighted-Average Remaining Contractual Life              (in years)

 

 Number Exercisable

2.00

 

960,000

 

8.92

 

200,000

4.50

 

165,000

 

9.49

 

-

 

 

 

 

 

 

 

 

 

1,125,000

 

9.00

 

200,000