SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2012

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

On or about March 15, 2012, the Company was served with a Charge of Discrimination filed with the Equal Employment Opportunity Commission by Richard Rothmaller, a former employee of the Company.  Rothmaller claims that the Company failed to accommodate his alleged disability and ultimately terminated him on October 13, 2011 because of his alleged disability.  On or about April 19, 2012, the parties resolved the matter, the case has been dismissed and proper amounts have been accrued at the period ended March 31, 2012.

As of March 31, 2012, we had$120,000 worth of convertible notes that remain outstanding, and which come due in 2012.  As of April 19, 2012 those notes, plus $30,979 were converted into 150,979 shares of Common Stock.

On May 8, 2012, we entered into a private placement subscription agreement with Brightline Ventures I-B, LLC, a Delaware Limited Liability Company pursuant to which we sold 744,711 shares of Common Stock, for a price of $1.50 per share and received gross proceeds of $1,117,067.

On April 11, 2012, an employee of the Company purchased 2,500 shares of common stock under the Stock Option Plan at $0.65 per share.

On February 23, 2012, we entered into a private placement subscription agreement with Brightline Ventures I-B, LLC, a Delaware Limited Liability Company pursuant to which we sold 311,545 shares of Common Stock, for a price of $1.50 per share and received gross proceeds of $467,318.  These shares were issued subsequent to March 31, 2012.

On March 29, 2012, we entered into a private placement subscription agreement with Brightline Ventures I-B, LLC, a Delaware Limited Liability Company pursuant to which we sold 437,380 shares of Common Stock, for a price of $1.50 per share and received gross proceeds of $656,070. These shares were issued subsequent to March 31, 2012.