STOCK-BASED COMPENSATION PLAN AND WARRANTS (Tables)

6 Months Ended

Jun. 30, 2014

A summary of the status of stock options under the Plan as of June 30, 2014 and December 31, 2013 is as follows:

	6/30/2014					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		2,069,300		$	0.57		2,176,535		$	1.67
Exercised		-		$	-		(293,650	)	$	0.98
Expired and Cancelled		(160,000	)	$	1.36		(28,000	)	$	2.18
		11,493,062					9,583,762

Outstanding, end of period		11,493,062		$	1.05		9,583,762		$	1.16

Exercisable at end of period		10,420,912		$	1.11		9,536,262		$	1.17

	6/30/2014
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 at June 30, 2014 are as follows:

The summary of the status of the warrants issued by the Company as of June 30, 2014 and December 31, 2013 are as follows:

	6/30/2014					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	)	$	1.28
Cashless Exercises		-		$	-		(8,082,535	)	$	1.43
Expired and Cancelled		(196,914	)	$	0.74		(344,576	)	$	0.88
		16,491,351					16,688,265

Outstanding, end of period		16,491,351		$	1.44		16,688,265		$	1.44

Exercisable at end of period		16,491,351		$	1.44		16,688,265		$	1.44