STOCK OPTION PLAN AND WARRANTS (Tables)

12 Months Ended

Dec. 31, 2012

STOCK OPTION PLAN AND WARRANTS [Abstract]

Summary of warrant activity

A summary of the status of the warrants issued by the Company as of December 31, 2012 and 2011 are as follows:

	Year Ended					Year Ended
	12/31/2012					12/31/2011
	Number of Warrants			Weighted Average Exercise Price		Number of Warrants			Weighted Average Exercise Price
Outstanding at beginning of year		23,736,108		$	1.55		18,779,753		$	1.59
Granted		650,000		$	0.83		5,130,046		$	1.66
Exercised		(490,424	)	$	0.62		(56,489	)	$	0.06
Cashless Exercises		(335,541	)	$	0.91		-
Expired and Cancelled		(183,893	)	$	14.73		(117,202	)	$	13.72
		23,376,250					23,736,108
Outstanding, end of period		23,376,250		$	1.46		23,736,108		$	1.55
Exercisable at end of period		23,376,250		$	1.46		23,736,108		$	1.55

Summary of the status of stock options

A summary of the status of stock options issued by the Company as of December 31, 2012 and 2011 are as follows:

	12/31/2012					12/31/2011
				Weighted					Weighted
	Number			Average		Number			Average
	of			Exercise		of			Exercise
	Shares			Price		Shares			Price
Outstanding at beginning of year		5,645,202		$	1.10		3,484,833		$	1.26
Granted		2,354,275		$	0.80		2,298,702		$	1.02
Exercised		(230,600	)	$	1.09		-		$	-
Expired and Cancelled		(40,000	)	$	0.86		(138,333	)	$	3.69
Outstanding at end of period		7,728,877		$	1.01		5,645,202		$	1.10
Exercisable at end of period		7,582,022		$	1.03		5,317,003		$	1.13

Stock option valuation assumptions

The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option valuation model.  This model uses the assumptions listed in the table below.  Expected volatilities are based on the historical volatility of the Company's stock.  The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

	2012			2011
Weighted average fair value per option granted	$	0.38		$	0.97
Risk-free interest rate		0.34 - 0.42	%		0.6 - 0.9	%
Expected dividend yield		0.00	%		0.00	%
Expected lives		2.695			2.875 - 5
Expected volatility		97.72 - 103	%		101 - 245	%

Stock options outstanding by price range

Stock options outstanding at December 31, 2012 are as follows:

			Weighted
			Average		Weighted
			Remaining		Average
	Options		Contractual		Exercise		Options
Range of Exercise Prices	Outstanding		Life		Price		Exercisable
$0.01-$1.50		7,383877		3.2	$	1.13		7,237,022
$1.51-$3.00		210,000		2.4	$	1.49		210,000
$3.00-$5.00		135,000		5.3	$	3.11		135,000
		7,728,877		3.6		1.02		7,582,022

Stock options outstanding at December 31, 2011 are as follows:

			Weighted
			Average		Weighted
			Remaining		Average
	Options		Contractual		Exercise		Options
Range of Exercise Prices	Outstanding		Life		Price		Exercisable
$0.01-$1.50		5,435,202		3.9	$	1.18		5,107,003
$1.51-$3.00		210,000		2.0	$	1.49		210,000
		5,645,202		4.0		1.13		5,317,003