Stock Options

6 Months Ended

Jun. 30, 2011

Note 8: Stock options

On December 30, 2009, the Company approved 2009 Global Stock Incentive Plan (the “stock option plan”), under which 35,000,000 shares of common stock are authorized for issuance. As of June 30, 2011 26,250,200 stock options were granted under the Stock Option Plan.

The Company accounts for stock based compensation using the fair value recognition provisions of ASC No. 718 “Compensation – stock compensation”.

The fair value of the stock options is estimated based upon grant date fair value using the Black-Scholes option-pricing model with the following weighted average assumptions used for 2011 grants:

Annual dividends of	$	0.00
expected volatility of		151.54	%
risk-free interest rate of		1.92	%
expected average options expiration		6.52

	For the six months ended
	June 30, 2011
	Number of options		Weighted Average Exercise Price
Outstanding at the beginning of the period		3,550,200	$	0.15
Granted		22,700,000		0.11
Exercised		-		-
Forfeited		-		-
Outstanding at the end of the period		26,250,200	$	0.12

Exercisable at the end of the period

13,993,263

0.17

	For the six months ended
	June 30, 2010
	Number of options		Weighted Average Exercise Price
Outstanding at the beginning of the period		1,550,200	$	0.15
Granted		2,000,000		0.15
Exercised		-		-
Forfeited		-		-
Outstanding at the end of the period		3,550,200	$	0.15

Exercisable at the end of the period

2,000,198

0.15

Suspect Detection Systems, Inc. 10-Q/A