13. Warrants

At December 31, 2012 and 2011, 3,899,758 and 4,096,476 shares, respectively, of common stock have been reserved for issuance under outstanding warrants. All of the warrants are fully vested and have expiration dates ranging from March 24, 2013 to July 31, 2016. Information concerning the Company's warrant activity is as follows:


	2012				2011
	Weighted Average Exercise				Weighted Average Exercise
	Warrants		Price		Warrants			Price
Outstanding, at the beginning of year		4,096,476	$	.73		4,558,975		$	.97
Granted		-				92,791			.50
Exercised		196,718		.35		(83,504	)		.17
Expired		-				(471,786	)		1.25
Outstanding, at the end of year		3,899,758	$	.77		4,096,476		$	.73


	Warrants Outstanding - December 31, 2012
Range of Exercise Price	Number Outstanding		Remaining Average Contractual Life (In Years)		Weighted Average Exercise Price
$0.35 - $0.75		2,446,483		2.24	$	.48
$1.25		1,453,275		.70		1.25
Totals		3,899,758		1.82	$	.77

During March, 2003, in consideration of the stockholder loan agreement, the Company granted the stockholder a total of 475,000 common stock purchase warrants at an exercise price equal to the closing market price of the Company's stock on the dates of grant. On March 28, 2002, the Company recorded a deferred charge of $318,000. On March 14, 2003, the Company recorded a deferred charge of $212,500. The deferred charges were initially amortized over the commitment period and subsequently revised to include the repayment period, as amended. During the years ended December 31, 2012 and 2011, the Company had amortized $503 and $1,007, respectively, of such costs, which are included in interest expense in the accompanying consolidated statements of operations.

The Company granted 39,342 bonus shares in connection with the warrant modification agreement of November 21, 2011 for warrants exercised in January, 2012.