Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLAN (Tables)

STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLAN (Tables)

12 Months Ended

Dec. 31, 2014

Stock-based Compensation And Employee Benefit Plan Tables

Schedule of weighted average estimated fair value of stock option grants

The weighted average estimated fair value of stock option grants and the weighted average assumptions that were used in calculating such values for the years ended December 31, 2014 and 2013 are as follows:

	2014	2013

Risk-free interest rate	1.52-1.7%	.34%-1.52%
Expected volatility	42.11-45.8%	76%
Expected life (in years)	3-4	2-3.5
Dividend rate	0	0
Weighted-average estimated fair value per award	$.51	$.28

Schedule of stock option activity for the year

A summary of stock option activity for the year ended December 31, 2014 is presented as follows:

						Weighted		Weighted
				Weighted		Average		Average
	Number			Average		Remaining		Grant
	Of			Exercise		Contractual		Date
	Shares			Price		Life		Fair Value

Outstanding at January 1, 2014		2,281,100		$	.57		2.1 years	$	.08
Granted		720,000		$	1.02			$	.51
Exercised		(796,700	)	$	.50				—
Forfeited/expired/canceled		(187,000	)	$	.50				—
Outstanding at December 31, 2014		2,017,400		$	.72		2.6 years	$	.23
Vested and exercisable at December 31, 2014		1,489,065		$	.64		1.9 years	$	.16

A summary of stock option activity for the year ended December 31, 2013 is presented as follows:

						Weighted		Weighted
				Weighted		Average		Average
	Number			Average		Remaining		Grant
	Of			Exercise		Contractual		Date
	Shares			Price		Life		Fair Value

Outstanding at January 1, 2013		2,294,000		$	.60		2.4 years	$	.13
Granted		855,000		$	.71		—	$	.24
Exercised		(45,900	)	$	.50		—		—
Forfeited/expired/canceled		(822,000	)	$	1.00		—		—
Outstanding at December 31, 2013		2,281,100		$	.57		2.1 years	$	.08
Vested and exercisable at December 31, 2013		1,612,800		$	.57		2.1 years	$	.06