STOCK-BASED COMPENSATION PLAN AND WARRANTS (Tables)

3 Months Ended

Mar. 31, 2014

STOCK-BASED COMPENSATION PLAN AND WARRANTS [Abstract]

Summary of the status of stock options

A summary of the status of stock options under the Plan as of March 31, 2014 and December 31, 2013 is as follows:

	3/31/2014					12/31/2013
	Number of Shares			Weighted Average Exercise Price		Number of Shares			Weighted Average Exercise Price
Outstanding at beginning of year		9,583,762		$	1.16		7,728,877		$	1.01
Granted		1,844,300		$	0.56		2,176,535		$	1.67
Exercised		-		$	-		(293,650	)	$	0.98
Expired and Cancelled		(80,000	)	$	1.02		(28,000	)	$	2.18
		11,348,062					9,583,762
Outstanding, end of period		11,348,062		$	1.06		9,583,762		$	1.16
Exercisable at end of period		9,964,837		$	1.14		9,536,262		$	1.17

Stock option valuation assumptions

3/31/2014
Weighted average fair value per option granted	$	0.4968
Risk-free interest rate		1.75	%
Expected dividend yield		0.00	%
Expected lives		2.688
Expected volatility		98.91	%

Stock options outstanding by price range

Stock options outstanding at March 31, 2014 are as follows:

				Weighted
				Average		Weighted
				Remaining		Average
		Options		Contractual		Exercise		Options
Range of Exercise Prices		Outstanding		Life		Price		Exercisable
$	0.01-$1.50		8,874,527		2.4	$	0.77		7,491,302
$	1.51-$3.00		2,348,535		3.5	$	1.67		2,348,535
$	3.01-$5.00		125,000		3.6	$	3.11		125,000
			11,348,062		2.7	$	1.07		9,964,837

Summary of warrant activity

The summary of the status of the warrants issued by the Company as of March 31, 2014 and December 31, 2013 are as follows:

	3/31/2014					12/31/2013
	Number of Warrants			Weighted Average Exercise Price		Number of Warrants			Weighted Average Exercise Price
Outstanding at beginning of year		16,688,265		$	1.44		23,392,811		$	1.46
Granted		-		$	-		4,010,295		$	1.18
Exercised		-		$	-		(2,287,730	)	$	1.43
Cashless Exercises		-		$	-		(8,082,535	)	$	1.43
Expired and Cancelled		(97,914	)	$	0.01		(344,576	)	$	0.88
		16,590,351					16,688,265
Outstanding, end of period		16,590,351		$	1.44		16,688,265		$	1.44
Exercisable at end of period		16,590,351		$	1.44		16,688,265		$	1.44