Firefly Neuroscience (AIFF) 10-Q 13 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 10, 2015
Document And Entity Information
Entity Registrant Name	INFORMATION ANALYSIS INC
Entity Central Index Key	803,578
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		11,201,760
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 2,375,326	$ 2,450,006
Accounts receivable, net	989,194	970,621
Prepaid expenses and other current assets	305,245	759,982
Note receivable, current	0	3,896
Total current assets	3,669,765	4,184,505
Property and equipment, net	41,927	53,675
Note receivable, long term	0	5,102
Other assets	6,281	6,281
Total assets	3,717,973	4,249,563
Current liabilities:
Accounts payable	264,552	32,327
Commissions payable	906,566	1,017,047
Deferred revenue	280,861	737,994
Accrued payroll and related liabilities	251,995	255,703
Other accrued liabilities	194,000	116,097
Total liabilities	1,897,974	2,159,168
Stockholders' equity:
Common stock, par value $0.01, 30,000,000 shares authorized; 12,844,376 shares issued, 11,201,760 shares outstanding as of September 30, 2015 and December 31, 2014	128,443	128,443
Additional paid-in capital	14,621,713	14,613,887
Accumulated deficit	(11,999,946)	(11,721,724)
Treasury stock, 1,642,616 shares at cost	(930,211)	(930,211)
Total stockholders' equity	1,819,999	2,090,395
Total liabilities and stockholders' equity	$ 3,717,973	$ 4,249,563

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Stockholders Equity
Common Stock shares par value	$ 0.01	$ 0.01
Common Stock shares Authorized	30,000,000	30,000,000
Common Stock shares Issued	12,844,376	12,844,376
Common Stock shares Outstanding	11,201,760	11,201,760
Treasury Stock	1,642,616	1,642,616

STATEMENTS OF OPERATIONS AND CO

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Professional fees	$ 1,217,234	$ 944,131	$ 3,329,766	$ 2,608,445
Software sales	241,655	413,016	915,119	952,819
Total revenues	1,458,889	1,357,147	4,244,885	3,561,264
Cost of revenues
Cost of professional fees	788,066	520,857	2,023,609	1,498,436
Cost of software sales	226,566	232,138	856,561	687,230
Total cost of revenues	1,014,632	752,995	2,880,170	2,185,666
Gross profit	444,257	604,152	1,364,715	1,375,598
Selling, general and administrative expenses	434,954	407,048	1,301,322	1,278,856
Commissions expense	109,630	171,551	349,295	335,303
(Loss) income from operations	(100,327)	25,553	(285,902)	(238,561)
Other income	2,585	2,435	7,680	7,731
(Loss) income before provision for income taxes	(97,742)	27,988	(278,222)	(230,830)
Provision for income taxes	0	0	0	0
Net (loss) income	(97,742)	27,988	(278,222)	(230,830)
Comprehensive (loss) income	$ (97,742)	$ 27,988	$ (278,222)	$ (230,830)
Net (loss) income per common share:
Basic:	$ (0.01)	$ 0	$ (0.02)	$ (0.02)
Diluted:	$ (0.01)	$ 0	$ (0.02)	$ (0.02)
Weighted average common shares outstanding
Basic	11,201,760	11,201,760	11,201,760	11,201,760
Diluted	11,201,760	11,347,107	11,201,760	11,201,760

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (278,222)	$ (230,830)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	22,475	23,662
Stock-based compensation	7,826	12,067
Bad debt expense	107	1,458
Forgiveness of note receivable	7,863	0
Changes in operating assets and liabilities
Accounts receivable	(18,680)	573,885
Prepaid expenses and other current assets	454,737	249,824
Accounts payable, accrued payroll and related liabilities, and other accrued liabilities	306,420	(530,377)
Commissions payable	(110,481)	(132,893)
Deferred revenue	(457,133)	(243,960)
Net cash used in operating activities	(65,088)	(277,164)
Cash flows from investing activities:
Acquisition of furniture and equipment	(10,727)	(20,903)
Payments received on note receivable	1,135	5,296
Net cash used in investing activities	(9,592)	(15,607)
Net decrease in cash and cash equivalents	(74,680)	(292,771)
Cash and cash equivalents, beginning of the period	2,450,006	2,359,527
Cash and cash equivalents, end of the period	2,375,326	2,066,756
Supplemental cash flow information
Interest paid	0	0
Income taxes paid	$ 0	$ 0

1. Basis of Presentation

1. Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Basis Of Presentation
1. Basis of Presentation	Organization and Business Information Analysis Incorporated (“IAI”, or the “Company”) was incorporated under the corporate laws of the Commonwealth of Virginia in 1979 to develop and market computer applications software systems, programming services, and related software products and automation systems. The Company provides services to customers throughout the United States, with a concentration in the Washington, D.C. metropolitan area. Unaudited Interim Financial Statements The accompanying unaudited financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the unaudited financial statements include all adjustments necessary (which are of a normal and recurring nature) for the fair and not misleading presentation of the results of the interim periods presented. These unaudited financial statements should be read in conjunction with our audited financial statements for the year ended December 31, 2014 included in the Annual Report on Form 10-K filed by the Company with the SEC on March 20, 2015 (the “Annual Report”). The accompanying December 31, 2014 financial information was derived from our audited financial statements included in the Annual Report. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. There have been no changes in the Company’s significant accounting policies as of September 30, 2015 as compared to the significant accounting policies disclosed in Note 1, "Summary of Significant Accounting Policies" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31. 2014 that was filed with the SEC on March 20, 2015. Use of Estimates and Assumptions The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results can, and in many cases will, differ from those estimates. Income Taxes As of September 30, 2015, there have been no material changes to the Company’s uncertain tax position disclosures as provided in Note 7 of the Annual Report. The Company does not anticipate that total unrecognized tax benefits will significantly change prior to September 30, 2015.

2. Recent Accounting Pronouncem

2. Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2015
Recent Accounting Pronouncements
2. Summary of Significant Accounting Policies	From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB"), or other standard setting bodies that the Company adopts as of the specified effective date. In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09 ("Topic 606"), Revenue from Contracts with Customers . In July 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date

3. Stock-Based Compensation

3. Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Stock-based Compensation
3. Stock-Based Compensation	At September 30, 2015, the Company had two stock-based compensation plans described in Note 9 of the Annual Report. Total compensation expense related to these plans was $2,112 and $3,262 for the quarters ended September 30, 2015 and 2014, respectively, none of which related to options awarded to non-employees. Total compensation expense related to these plans was $7,826 and $12,067 for the nine months ended September 30, 2015 and 2014, respectively. The Company estimates the fair value of options granted using a Black-Scholes valuation model to establish the expense. When stock-based compensation is awarded to employees, the expense is recognized ratably over the vesting period. When stock-based compensation is awarded to non-employees, the expense is recognized over the period of performance. The fair values of option awards granted in the three months and nine months ended September 30, 2015 and 2014, were estimated using the Black-Scholes option pricing model using the following assumptions: Three Months ended September 30, Nine Months ended September 30, 2015 2014 2015 2014 Risk free interest rate n/a 1.78% 1.61 - 1.97% 1.77-1.78% Dividend yield n/a 0% 0% 0% Expected term n/a 5 years 5-10 years 5 years Expected volatility n/a 43.3% 41.2 - 54.2% 43.3 - 47.3% The status of the options issued as of September 30, 2015 and changes during the nine months ended September 30, 2015 and 2014 were as follows: Options outstanding Number of shares Weighted average exercise price per share Balance at December 31, 2014 1,264,000 $ 0.26 Options granted 20,000 0.20 Options exercised -- -- Options expired or forfeited (1,000 ) 0.24 Balance at March 31, 2015 1,283,000 $ 0.26 Options granted -- -- Options exercised -- -- Options expired or forfeited (5,000 ) 0.52 Balance at June 30, 2015 1,278,000 $ 0.25 Options granted -- -- Options exercised -- -- Options expired or forfeited (10,000 ) 0.38 Balance at September 30, 2015 1,268,000 $ 0.25 Options outstanding Number of shares Weighted average exercise price per share Balance at December 31, 2013 1,187,000 $ 0.26 Options granted -- -- Options exercised -- -- Options expired or forfeited -- -- Balance at March 31, 2014 1,187,000 $ 0.26 Options granted 1,000 0.24 Options exercised -- -- Options expired or forfeited (3,000 ) 0.11 Balance at June 30, 2014 1,185,000 $ 0.26 Options granted 20,000 0.17 Options exercised -- -- Options expired or forfeited -- -- Balance at September 30, 2014 1,205,000 $ 0.26 The following table summarizes information about options at September 30, 2015: Options outstanding Options exercisable Total shares Weighted average exercise price Weighted average remaining contractual life in years Aggregate intrinsic value Total shares Weighted average exercise price Weighted average remaining contractual life in years Aggregate intrinsic value 1,268,000 $ 0.25 4.92 $ 11,968 1,090,500 $ 0.27 4.33 $ 8,776 Nonvested stock awards as of September 30, 2015 and changes during the nine months ended September 30, 2015 were as follows: Nonvested Number of shares Weighted average grant date fair value Balance at December 31, 2014 209,500 $ 0.07 Granted 20,000 0.11 Vested (5,000 ) 0.08 Expired before vesting (1,000 ) 0.10 Balance at March 31, 2015 223,500 $ 0.08 Granted -- -- Vested (10,000 ) 0.09 Expired before vesting -- -- Balance at June 30, 2015 213,500 $ 0.07 Granted -- -- Vested (36,000 ) 0.09 Expired before vesting -- -- Balance at September 30, 2015 177,500 $ 0.07 As of September 30, 2015 and 2014, unrecognized compensation cost associated with non-vested share-based compensation totaled $1,846 and $6,156, respectively, which are expected to be recognized over weighted average periods of six months and seven months, respectively.

4. Loss Per Share

4. Loss Per Share	9 Months Ended
	Sep. 30, 2015
Net (loss) income per common share:
4. Loss Per Share	Basic (loss) income per share excludes dilution and is computed by dividing loss available to common shareholders by the weighted-average number of shares outstanding for the period. Diluted (loss) income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, except for periods when the Company reports a net loss because the inclusion of such items would be antidilutive. The following is a reconciliation of the amounts used in calculating basic and diluted net (loss) income per common share: Net Loss Shares Per Share Amount Basic net loss per common share for the three months ended September 30, 2015: Loss available to common stockholders $ (97,742 ) 11,201,760 $ (0.01 ) Effect of dilutive stock options - - - Diluted net loss per common share for the three months ended September 30, 2015 $ (97,742 ) 11,201,760 $ (0.01 ) Basic net income per common share for the three months ended September 30, 2014: Income available to common stockholders $ 27,988 11,201,760 $ 0.00 Effect of dilutive stock options - 145,347 - Diluted net income per common share for the three months ended September 30, 2014 $ 27,988 11,347,107 $ 0.00 Net Loss Shares Per Share Amount Basic net loss per common share for the nine months ended September 30, 2015: Loss available to common stockholders $ (278,222 ) 11,201,760 $ (0.02 ) Effect of dilutive stock options - - - Diluted net loss per common share for the nine months ended September 30, 2015 $ (278,222 ) 11,201,760 $ (0.02 ) Basic net loss per common share for the nine months ended September 30, 2014: Loss available to common stockholders $ (230,830 ) 11,201,760 $ (0.02 ) Effect of dilutive stock options - - - Diluted net loss per common share for the nine months ended September 30, 2014 $ (230,830 ) 11,201,760 $ (0.02 )

5. Financial Instruments

5. Financial Instruments	9 Months Ended
	Sep. 30, 2015
Financial Instruments
Financial Instruments	Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in the principal or most advantageous market in an orderly transaction. To increase consistency and comparability in fair value measurements, the FASB established a three-level hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of fair value measurements are: ● Level 1—Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. ● Level 2—Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. ● Level 3—Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The inputs used in measuring the fair value of cash and cash equivalents are considered to be Level 1 in accordance with the three-tier fair value hierarchy. The fair market values are based on period-end statements supplied by the various banks and brokers that held the majority of the Company’s funds. The fair value of short-term financial instruments (primarily accounts receivable, prepaid expenses, accounts payable, accrued expenses, and other current assets and liabilities) approximate their carrying values because of their short-term nature. The carrying value of financial instruments including cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of these items.

1. Basis of Presentation (Polic

1. Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Organization and Business	Information Analysis Incorporated (“IAI”, or the “Company”) was incorporated under the corporate laws of the Commonwealth of Virginia in 1979 to develop and market computer applications software systems, programming services, and related software products and automation systems. The Company provides services to customers throughout the United States, with a concentration in the Washington, D.C. metropolitan area.
Unaudited Interim Financial Statements	The accompanying unaudited financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the unaudited financial statements include all adjustments necessary (which are of a normal and recurring nature) for the fair and not misleading presentation of the results of the interim periods presented. These unaudited financial statements should be read in conjunction with our audited financial statements for the year ended December 31, 2014 included in the Annual Report on Form 10-K filed by the Company with the SEC on March 20, 2015 (the “Annual Report”). The accompanying December 31, 2014 financial information was derived from our audited financial statements included in the Annual Report. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. There have been no changes in the Company’s significant accounting policies as of September 30, 2015 as compared to the significant accounting policies disclosed in Note 1, "Summary of Significant Accounting Policies" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31. 2014 that was filed with the SEC on March 20, 2015.
Use of Estimates and Assumptions	The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results can, and in many cases will, differ from those estimates.
Income Taxes	As of September 30, 2015, there have been no material changes to the Company’s uncertain tax position disclosures as provided in Note 7 of the Annual Report. The Company does not anticipate that total unrecognized tax benefits will significantly change prior to September 30, 2015.

3. Stock Based Compensation (Ta

3. Stock Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Black-Scholes option pricing model assumptions	Three Months ended September 30, Nine Months ended September 30, 2015 2014 2015 2014 Risk free interest rate n/a 1.78% 1.61 - 1.97% 1.77-1.78% Dividend yield n/a 0% 0% 0% Expected term n/a 5 years 5-10 years 5 years Expected volatility n/a 43.3% 41.2 - 54.2% 43.3 - 47.3%
Options outstanding	Options outstanding Number of shares Weighted average exercise price per share Balance at December 31, 2014 1,264,000 $ 0.26 Options granted 20,000 0.20 Options exercised -- -- Options expired or forfeited (1,000 ) 0.24 Balance at March 31, 2015 1,283,000 $ 0.26 Options granted -- -- Options exercised -- -- Options expired or forfeited (5,000 ) 0.52 Balance at June 30, 2015 1,278,000 $ 0.25 Options granted -- -- Options exercised -- -- Options expired or forfeited (10,000 ) 0.38 Balance at September 30, 2015 1,268,000 $ 0.25 Options outstanding Number of shares Weighted average exercise price per share Balance at December 31, 2013 1,187,000 $ 0.26 Options granted -- -- Options exercised -- -- Options expired or forfeited -- -- Balance at March 31, 2014 1,187,000 $ 0.26 Options granted 1,000 0.24 Options exercised -- -- Options expired or forfeited (3,000 ) 0.11 Balance at June 30, 2014 1,185,000 $ 0.26 Options granted 20,000 0.17 Options exercised -- -- Options expired or forfeited -- -- Balance at September 30, 2014 1,205,000 $ 0.26
Options Summary	Options outstanding Options exercisable Total shares Weighted average exercise price Weighted average remaining contractual life in years Aggregate intrinsic value Total shares Weighted average exercise price Weighted average remaining contractual life in years Aggregate intrinsic value 1,268,000 $ 0.25 4.92 $ 11,968 1,090,500 $ 0.27 4.33 $ 8,776
Nonvested Stock awards	Nonvested Number of shares Weighted average grant date fair value Balance at December 31, 2014 209,500 $ 0.07 Granted 20,000 0.11 Vested (5,000 ) 0.08 Expired before vesting (1,000 ) 0.10 Balance at March 31, 2015 223,500 $ 0.08 Granted -- -- Vested (10,000 ) 0.09 Expired before vesting -- -- Balance at June 30, 2015 213,500 $ 0.07 Granted -- -- Vested (36,000 ) 0.09 Expired before vesting -- -- Balance at September 30, 2015 177,500 $ 0.07

4. (Loss) Income Per Share (Tab

4. (Loss) Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Reconciliation of Loss per Share	The following is a reconciliation of the amounts used in calculating basic and diluted net (loss) income per common share: Net Loss Shares Per Share Amount Basic net loss per common share for the three months ended September 30, 2015: Loss available to common stockholders $ (97,742 ) 11,201,760 $ (0.01 ) Effect of dilutive stock options - - - Diluted net loss per common share for the three months ended September 30, 2015 $ (97,742 ) 11,201,760 $ (0.01 ) Basic net income per common share for the three months ended September 30, 2014: Income available to common stockholders $ 27,988 11,201,760 $ 0.00 Effect of dilutive stock options - 145,347 - Diluted net income per common share for the three months ended September 30, 2014 $ 27,988 11,347,107 $ 0.00 Net Loss Shares Per Share Amount Basic net loss per common share for the nine months ended September 30, 2015: Loss available to common stockholders $ (278,222 ) 11,201,760 $ (0.02 ) Effect of dilutive stock options - - - Diluted net loss per common share for the nine months ended September 30, 2015 $ (278,222 ) 11,201,760 $ (0.02 ) Basic net loss per common share for the nine months ended September 30, 2014: Loss available to common stockholders $ (230,830 ) 11,201,760 $ (0.02 ) Effect of dilutive stock options - - - Diluted net loss per common share for the nine months ended September 30, 2014 $ (230,830 ) 11,201,760 $ (0.02 )

3. Stock-Based Compensation (De

3. Stock-Based Compensation (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock-based Compensation Details
Risk free interest rate, minimum	1.78%	1.61%	1.77%
Risk free interest rate, maximum	1.78%	1.97%	1.78%
Dividend yield	0.00%	0.00%	0.00%
Expected term, minimum	5 years	5 years	5 years
Expected term, maximum	5 years	10 years	5 years
Expected volatility, minimum	43.30%	41.20%	43.30%
Expected volatility, maximum	43.30%	54.20%	47.30%

3. Stock-Based Compensation (15

3. Stock-Based Compensation (Details 1) - $ / shares	3 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014
Ending Balance	1,268,000
Weighted average price per share, ending balance	$ 0.25
Options
Beginning Balance	1,278,000	1,283,000	1,264,000	1,185,000	1,187,000	1,187,000
Options granted	0	0	20,000	20,000	1,000	0
Options exercised	0	0	0	0	0	0
Options expired or forfeited	10,000	5,000	1,000	0	3,000	0
Ending Balance	1,268,000	1,278,000	1,283,000	1,205,000	1,185,000	1,187,000
Weighted average price per share, beginning balance	$ 0.25	$ 0.26	$ 0.26	$ 0.26	$ 0.26	$ 0.26
Weighted average price per share, Options granted	0	0	0.20	0.17	0.24	0
Weighted average price per share, Options exercised	0	0	0	0	0	0
Weighted average exercise price per share, Options expired or forfeited	0.38	0.52	0.24	0	0.11	0
Weighted average price per share, ending balance	$ 0.25	$ 0.25	$ 0.26	$ 0.26	$ 0.26	$ 0.26

3. Stock-Based Compensation (16

3. Stock-Based Compensation (Details 2)	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Stock-based Compensation Details 2
Options outstanding | shares	1,268,000
Weighted Average Price per share	$ 0.25
Weighted average remaing contractual life in years	4 years 11 months 1 day
Aggregate intrinsic value | $	$ 11,968
Options exercisable | shares	1,090,500
Options exercisable weighted average exercise price	$ 0.27
Options exercisable weighted average remaining contractual life	4 years 3 months 29 days
Options exercisable aggregate intrinsic value | $	$ 8,776

3. Stock-Based Compensation (17

3. Stock-Based Compensation (Details 3) - $ / shares	3 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015
Number of Shares
Nonvested Stock Awards Beginning Balance	213,500	223,500	209,500
Granted	0	0	20,000
Vested	36,000	10,000	5,000
Expired before Vesting	0	0	1,000
Nonvested Stock Awards Ending Balance	177,500	213,500	223,500
Weighted Average Grant Date Fair Value
Nonvested Stock Awards Beginning Balance	$ 0.07	$ 0.08	$ 0.07
Granted	0	0	0.11
Vested	0.09	0.09	0.08
Expired before Vesting	0	0	0.10
Nonvested Stock Awards Ending Balance	$ 0.07	$ 0.07	$ 0.08

3. Stock-Based Compensation (18

3. Stock-Based Compensation (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock-based Compensation Details Narrative
Total compensation expense for stock options	$ 2,112	$ 3,262	$ 7,826	$ 12,067
Unrecognized compensation cost associated with non-vested share-based compensation	$ 1,846	$ 6,156	$ 1,846	$ 6,156

4. (Loss) Income Per Share (Det

4. (Loss) Income Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Loss Income Per Share Details
Basic net loss	$ (97,742)	$ 27,988	$ (278,222)	$ (230,830)
Basic shares	11,201,760	11,201,760	11,201,760	11,201,760
Basic net loss per common share	$ (0.01)	$ 0	$ (0.02)	$ (0.02)
Effect of dilutive stock options		145,347
Diluted shares	11,201,760	11,347,107	11,201,760	11,201,760
Diluted earnings per share	$ (0.01)	$ 0	$ (0.02)	$ (0.02)