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, 2013

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, 2013 and 2012 are as follows:

	2013			2012

Risk-free interest rate		.34%-1.52%			.36	%
Expected volatility		76	%		77	%
Expected life (in years)		2-3.5			3.67
Dividend rate		0			0
Weighted-average estimated fair value per award	$	.28		$	.05

Schedule of stock option activity for the year

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

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

Outstanding at January 1, 2013		2,234,000		$	.60		2.4 years	$	.13
Granted		855,000		$	.71		3.4 years	$	.27
Exercised		(14,461	)	$	—		—	$	—
Forfeited/expired/canceled		(833,439	)	$	—		—		—
Outstanding at December 31, 2013		2,241,100		$	.57		2.1 years	$	.08
Vested and exercisable at December 31, 2013		1,572,767		$	.57		2.1 years	$	.06

A summary of stock option activity for the year ended December 31, 2012 is presented as follows:

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

Outstanding at January 1, 2012		752,667	$	1.01		2.4 years	$	.47
Granted		1,800,000	$	.50		3.7 years	$	.05
Exercised		—		—		—		—
Forfeited/expired/canceled		(318,667)	$	—		—		—
Outstanding at December 31, 2012		2,234,000	$	.60		2.4 years	$	.13
Vested and exercisable at December 31, 2012		1,242,026	$	.68		2.14 years	$	.19