Annual report pursuant to section 13 and 15(d)

NOTE 13 - STOCK OPTIONS, STOCK INCENTIVES AND WARRANTS

v2.4.0.6
NOTE 13 - STOCK OPTIONS, STOCK INCENTIVES AND WARRANTS
12 Months Ended
Dec. 31, 2011
Shareholders' Equity and Share-based Payments [Text Block]
NOTE 13 - STOCK OPTIONS AND WARRANTS

2005 Stock Incentive Plan

The Company adopted the 2005 Stock Incentive as amended Plan (the “2005 Plan”) in order to attract and retain qualified employees, directors, independent contractors or agents of the Company.  Under the Plan, the Board of Directors (the “Board”), in its discretion may grant stock options (either incentive or non-qualified stock options) to employees, directors, independent contractors or agents to purchase the Company’s common stock at no less than 50% of the fair market price on the date the option is granted.  Options generally vest over four years and have a maximum term of ten years.

2007 Consultant Stock Incentive Plan

The Company adopted the 2007 Consultant Stock Incentive Plan (the “2007 Plan”) to: (i) provide long-term incentives, payment in stock in lieu of cash and rewards to consultants, advisors, attorneys, independent contractors or agents ("Eligible Participants") of the Company; (ii) assist the Company in attracting and retaining independent contractors or agents with experience and/or ability on a basis competitive with industry practices; and (iii) associate the interests of such independent contractors or agents with those of the Company's stockholders.  Total shares issuable under this plan may not exceed twenty (20) percent of the issued and outstanding shares of the Company’s Class A Common Stock

2004 Directors’ and Officers’ Stock Incentive Plan

The Company adopted the 2004 Directors’ and Officers’ Stock Incentive Plan (the “2004 D&O Plan”) in order to provide long-term incentive and rewards to officers and directors of the Company and subsidiaries and to attract and retain qualified employees, directors, independent contractors or agents of the Company.  Under the Plan, the Board, in its discretion may grant stock options (either incentive or non-qualified stock options) to employees, directors, independent contractors or agents to purchase the Company’s common stock at no less than 50% of the market price on the date the option is granted.  Options generally vest over four years and have a maximum term of ten years.

No securities were issued under these plans for the years ended December 31, 2011 and 2010, and there were no options issued or outstanding as of December 31, 2011 and 2010.

Warrants Outstanding

During 2011 the Company issued approximately 552,000 warrants for services with a fair value of approximately $107,000. The estimated fair value of the warrant has been calculated based on a Black-Scholes pricing model using the following assumptions: a) fair market value of stock of $0.22638; b) exercise price of $0.1811; c) Dividend yield of 0%; d) Risk free interest rate of 0.30%; e) expected volatility of 230.47%; f) Expected life of 1.5 years..

Unexpired warrants outstanding are as follows as of December 31, 2011:

Expiration Date
 
Exercise Price
   
Shares
 
             
July 11, 2012
    27.17       2,000  
 November 7, 2012
    0.18       552,000  
                 
              554,000  

The following table summarizes the warrants transactions:

 
 
Warrants
Outstanding
   
Weighted Average
Exercise Price
 
             
Balance, January 1, 2010
    2,000     $ 29.572  
Granted
    -     $ .000  
Exercised
    -     $ .000  
Canceled
    -     $ .000  
Balance, December 31, 2010
    2,000     $ 29.572  
                 
Granted
    552,000     $ .1811  
Exercised
    -     $ .0000  
Canceled
    -     $ .0000  
Balance, December 31, 2011
    554,000     $ .2711  
 
               
Outstanding and Exercisable,
               
December 31, 2011
    554,000     $ .2694  
                 
Outstanding and Exercisable,
               
December 31, 2010
    2,000     $ 28.976