Note 9 - Warrants

3 Months Ended

Mar. 31, 2013

Stockholders' Equity Note Disclosure [Text Block]

Note 9.  Warrants

Warrants Issued to Investors

The fair value of the warrants was determined using the Monte Carlo Simulation model and the following weighted average assumptions were used:

	March 31, 2013			March 31, 2012
Stock Price	$	2.80		$	3.60
Exercise Price	$	15.36		$	15.36
Expected Volatility		82	%		107	%
Expected Dividend Yield	None			None
Expected Term (in years)		3.3			4.3
Risk-free Interest Rate		0.57	%		0.36	%

As of March 31, 2013, the value of the warrant liabilities were $220,000 and the change in fair value during the three months ended March 31, 2013 was a loss of $130,000. The loss was recorded as other expense in the statement of operations.

Warrant activity for the three months ended March 31, 2013 and 2012 is summarized as follows:

	2013				2012
	Warrants		Weighted Average Exercise Price		Warrants		Weighted Average Exercise Price
Outstanding at January 1,		412,779	$	14.11		412,779	$	14.11
Issued
Expired
Warrant redemption
Exercised
Outstanding at March 31,		412,779	$	14.11		412,779	$	14.11
Currently exercisable		412,779	$	14.11		412,779	$	14.11

The following table summarizes information about warrants outstanding at March 31, 2013:

Warrants Outstanding and Exercisable
Range of Exercise Prices				Warrants		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price
$	13.80				112,779		3.1	$	13.80
$	13.86	to	$24.00		300,000		3.2		15.36
					412,779		3.2	$	14.11

The warrants expire on various dates ranging to September 2016.