STOCK OPTIONS AND RESTRICTED STOCK (Tables)

3 Months Ended

Sep. 30, 2012

Stock Options And Restricted Stock Tables

Share based compensation options

As of September 30, 2012, there were restricted shares of Common Stock issued and options to purchase an aggregate of 4,181,781 shares of Common Stock outstanding under the 2008 Plan and 5,688,219 shares available for future grants.

	Stock Option Plans
	2003 Plan		2008 Plan
Shares Available For Issuance
Total reserved for stock options and restricted stock	1,600,000		10,000,000
Net restricted stock issued net of cancellations	(161,250	)	(2,411,781	)
Stock options granted	(1,544,491	)	(2,275,000	)
Add back options cancelled before exercise	678,491		375,000
Options cancelled by plan vote	—		—
Remaining shares available for future grants	572,750		5,688,219
					Not Pursuant to a Plan
Total granted	1,544,491		2,275,000		3,100,000
Less:  Restricted stock cancelled	—		—		—
Options cancelled	(678,491	)	(375,000	)	(1,383,334	)
Options exercised	(356,000	)	(130,000	)	(666,666	)
Net shares outstanding before restricted stock	510,000		1,770,000		1,050,000
Net restricted stock issued net of cancellations	161,250		2,411,781		284,844
Outstanding shares at September 30, 2012	671,250		4,181,781		1,334,844

Assumption used for stock option granted

he assumptions used principally for stock options granted to employees and members of the Company’s Board of Directors in the nine months ended September 30, 2012 and 2011 were as follows:

	2012			2011
Risk-free interest rate		0.94% — 2.05	%		1.91% — 3.47	%
Expected dividend yield		—			—
Expected term	6.5 years			6.0 — 10.0 years
Forfeiture rate (excluding fully vested stock options)		15	%		0% — 15	%
Expected volatility		129% — 137	%		138% — 142	%

Share based compensation restricted stock

A summary of the Company’s nonvested restricted stock activity as of and for the nine months ended September 30, 2012, is as follows:

Restricted Stock	Shares			Weighted- Average Grant-Date Fair Value
Nonvested at January 1, 2012		1,819,594		$	1.72
Granted this period		907,031			1.89
Grants made in prior periods, now becoming restricted		220,000			0.92
Vested		(126,667	)		2.17
Forfeited		—			—
Nonvested at September 30, 2012		2,819,958		$	1.69

Stock option activity

A summary of stock option activity as of and for the nine months ended September 30, 2012 is as follows:

Stock Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2012		3,395,103		$	1.68
Granted		430,000			1.84
Exercised		(237,666	)		0.94
Forfeited or expired		(257,437	)		4.58
Outstanding at September 30, 2012		3,330,000		$	1.53	7.0 years	$	1,773,880
Exercisable at September 30, 2012		2,167,163		$	0.98	6.0 years	$	1,773,800