SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2011

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 12. SHARE-BASED COMPENSATION

Warrants:

As discussed in Note 9, on January 31, 2011, BigString entered into a separate Agreement and Release with each of the Releasors. Pursuant to the terms of each Agreement and Release, the Releasors have each agreed to forfeit the Warrants held by each of them to BigString for cancellation. Warrants to purchase 8,125,000 shares of BigString’s common stock, exercisable at $0.015 per share of common stock, were cancelled, resulting in a reduction of additional paid in capital of $203,349. The Company valued the warrants based on fair market value as estimated on the date of the Agreement and Release using the Black-Scholes option-pricing model.

Information regarding the warrants outstanding, all of which are exercisable, for 2011 and 2010 is as follows:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Term		Value
Warrants outstanding at January 1, 2010		16,393,545		$	0.14
Warrants granted		-		$	-
Warrants exercised		-		$	-
Warrants cancelled/forfeited/expired		(2,343,545	)	$	0.18
Warrants outstanding at December 31, 2010		14,050,000		$	0.13		3.2	$	175,500
Warrants granted		-		$	-
Warrants exercised		-		$	-
Warrants cancelled/forfeited/expired		(8,675,000	)	$	0.06
Warrants outstanding at December 31, 2011		5,375,000		$	0.25		2.7	$	-
Warrants exercisable at December 31, 2011		5,375,000		$	0.25		2.7	$	-

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate difference between the closing stock prices of BigString’s common stock at the specified dates and the exercise prices for in-the-money warrants) that would have been received by the warrant holders if all in-the-money warrants had been exercised on the specified dates.

No warrants were granted during the years ended December 31, 2011 and 2010.

No warrants were exercised and no cash received during the years ended December 31, 2011 and 2010.

During the years ended December 31, 2011 and 2010, 8,125,000 and 0 warrants were cancelled, respectively, with an aggregate intrinsic value of $121,875 and $0, respectively, at the date of cancellation. During the years ended December 31, 2011 and 2010, 550,000 and 2,343,545 warrants were forfeited or expired, respectively, with an aggregate intrinsic value of $0 and $0, respectively, at the date of forfeit or expiration.

Equity Incentive Plan and Stock Options Issued to Consultants:

For the years ended December 31, 2011 and 2010, BigString recorded stock-based option compensation expense of $0 and $361, respectively. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Stock-based compensation expense was recorded net of estimated forfeitures.

Information regarding the stock options outstanding during the years ended December 31, 2011 and 2010 is as follows:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Term		Value
Options outstanding at January 1, 2010		9,150,100		$	0.33
Options granted		-		$	-
Options exercised		-		$	-
Options cancelled/forfeited/expired		(2,200,000	)	$	0.26
Options outstanding at December 31, 2010		6,950,100		$	0.36		3.4	$	-
Options granted		-		$	-
Options exercised		-		$	-
Options cancelled/forfeited/expired		(1,825,100	)	$	0.32
Options outstanding at December 31, 2011		5,125,000		$	0.37		3.4	$	-
Options exercisable at December 31, 2011		5,125,000		$	0.37		3.4	$	-

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate difference between the closing stock prices of BigString’s common stock at the specified dates and the exercise prices for in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on the specified dates.

No options were granted during the years ended December 31, 2011 and 2010.

No options were exercised and consequently no cash was received from, and no tax benefit was attributable to, option exercises and no cash was received from purchases of shares for the years ended December 31, 2011 and 2010.

During the years ended December 31, 2011 and 2010, options to purchase a total of 1,825,100 and 2,200,000 shares of BigString’s common stock, respectively, were cancelled, forfeited or expired with an aggregate intrinsic value of $0 and $0, respectively, at the date of expiration.

The fair value of each option award is estimated on the date of grant using the Black-Scholes valuation model, consistent with the provisions of ASC 718. Because option-pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options. BigString has limited relevant historical information to support the expected exercise behavior because no exercises have taken place.

The following table presents the weighted-average assumptions used to estimate the fair values of the stock options granted in the periods presented:

	Years Ended
	December 31,
	2011			2010
Risk-free interest rate		-	%		-	%
Expected volatility		-	%		-	%
Expected life (in years)		-			-
Dividend yield		-			-

The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the awards in effect at the time of the grant. BigString estimates the volatility of its common stock at the date of the grant based on historical volatility, expected volatility and publicly traded peer companies. The expected life of stock options granted under the Equity Incentive Plan is based on management judgment, historical experience and publicly traded peer companies. BigString has no history or expectations of paying cash dividends on its common stock.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

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-Name Statement of Position (SOP)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef

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-Name Statement of Financial Accounting Standard (FAS)

-Number 123R

-Paragraph 64, 65, A240

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

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+ Details

BigString CORP 10-K