Quarterly report pursuant to Section 13 or 15(d)

Equity

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Equity
 9 Months Ended
Sep. 30, 2013
Equity [Abstract]  
Equity
Note 7 – Equity
 
Approval of the 2013 Stock Plan
 
The Board approved the Company’s 2013 Stock Plan.  The expiration date of the plan is September  9, 2023  and the total number of underlying shares of the Company’s common stock available for grant to employees, directors and consultants of the Company under the plan is 2,750,000 shares.
Approval of the Equity Incentive Plan
 
The Board approved the Company’s 2013 Equity Incentive Plan. The expiration date of the plan is September  9, 2023  and the total number of shares of the Company’s common stock available for grant to employees, directors and consultants of the Company under the plan is 450,000 shares.
 
Options
 
The following is a summary of option activities:
 
 
 
  
 
  
Weighted
  
 
  
 
 
  
 
  
Average
  
 
  
 
 
  
Weighted
  
Remaining
  
Aggregate
  
 
Number of
  
Average
  
Contractual
  
Intrinsic
  
 
Units
  
Exercise Price
  
Term (in years)
  
Value
  
 
 
  
 
  
 
  
 
  
Outstanding, December 31, 2012
     2,330,134     $ 0.96       8.91     $ 685,800  
                                 
Cancellation
     (49,950 )                        
 
                                
Outstanding, September 30, 2013
     2,280,184     $ 0.95       8.17     $ 1,609,035  
 
All options issued and outstanding are being amortized over their respective vesting periods. The unrecognized compensation expense at September 30, 2013 was $1,014,474.
 
Warrants
The following is a summary of warrant activities:
 
               
Weighted
        
               
Average
        
         
Weighted
    
Remaining
    
Aggregate
  
   
Number of
    
Average
    
Contractual
    
Intrinsic
  
   
Units
    
Exercise Price
    
Term (in years)
    
Value
  
   
 
    
 
          
 
  
Outstanding, December 31, 2012
     12,770,636     $ 0.97       4.48     $   6,114,768  
Warrants exercised
     (2,304,910 )   $ 1.65                  
Warrants expired
     (1,023,784 )   $ 1.65                  
Outstanding, September 30, 2013
     9,441,942     $ 0. 77       5.09     $ 9,611,403  
 
During the three months ended September 31, 2013 and 2012, the Company recorded option and warrant expenses of $95,971, and $72,100, respectively. During the nine months ended September 31, 2013 and 2012, the Company recorded option and warrant expenses of $284,371 and $168,000, respectively.