STOCK OPTION PLAN AND WARRANTS (Tables)

12 Months Ended

Dec. 31, 2014

STOCK OPTION PLAN AND WARRANTS [Abstract]

Summary of the status of stock options

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

	12/31/2014					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		2,372,800		$	0.58		2,176,535		$	1.67
Exercised		-		$	-		(293,650	)	$	0.98
Expired and Cancelled		(922,887	)	$	0.99		(28,000	)	$	2.18
		11,033,675					9,583,762
Outstanding, end of period		11,033,675		$	1.05		9,583,762		$	1.16
Exercisable at end of period		11,033,675		$	1.05		9,536,262		$	1.17

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 for stock options granted in 2014.  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.

	12/31/2014		12/31/2013
Weighted average fair value per option granted	$	0.31 - $0.50	$	1.04
Risk-free interest rate		.86 - 1.75%		0.65 - 0.81%
Expected dividend yield		0.00%		0.00%
Expected lives		2.6875		2.695
Expected volatility		82.11 - 98.91%		99.79 - 108%

Stock options outstanding by price range

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

Range of Exercise Prices	Options Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Options Exercisable
$0.01-$1.50		8,716,807		2.1	$	0.73		8,716,807
$1.51-$3.00		2,191,868		3.0	$	1.67		2,191,868
$3.01-$5.00		125,000		3.1	$	3.11		125,000
		11,033,675		2.3	$	1.05		11,033,675

Stock options outstanding at December 31, 2013 are as follows:

Range of Exercise Prices	Options Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Options Exercisable
$0.01-$1.50		7,090,227		2.8	$	0.97		7,090,227
$1.51-$3.00		2,368,535		4.5	$	1.67		2,321,035
$3.01-$5.00		125,000		4.6	$	3.11		125,000
		9,583,762		3.3	$	1.17		9,536,262

Summary of warrant activity

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

	12/31/2014					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	)	$	1.28
Cashless Exercises		-		$	-		(8,082,535	)	$	1.43
Expired and Cancelled		(241,914	)	$	0.87		(344,576	)	$	0.88
		16,446,351					16,688,265
Outstanding, end of period		16,446,351		$	1.44		16,688,265		$	1.44
Exercisable at end of period		16,446,351		$	1.44		16,688,265		$	1.44