STOCK OPTION PLAN AND WARRANTS (Tables)

6 Months Ended

Jun. 30, 2015

A summary of the status of stock options outstanding under the Plan as of June 30, 2015 and December 31, 2014 is as follows:

	6/30/2015					12/31/2014
	Number of Options			Weighted Average Exercise Price		Number of Options			Weighted Average Exercise Price
Outstanding at beginning of year		11,033,675		$	1.05		9,583,762		$	1.16
Granted		2,899,600		$	0.27		2,372,800		$	0.58
Exercised		-		$	-		-		$	-
Expired and Cancelled		(3,125,240	)	$	1.17		(922,887	)	$	0.99
		10,808,035					11,033,675

Outstanding, end of period		10,808,035		$	0.81		11,033,675		$	1.05

Exercisable at end of period		7,908,435		$	0.95		11,033,675		$	1.05

	6/30/2015
Weighted average fair value per option granted	$	0.1431
Risk-free interest rate		1.51	%
Expected dividend yield		0.00	%
Expected lives		2.688
Expected volatility		86.22	%

Stock options outstanding at June 30, 2015 are as follows:

Range of Exercise Prices	Options Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Options Exercisable
$0.01-$1.50		8,869,167		2.9	$	0.38		5,969,567
$1.51-$3.00		1,813,868		2.5	$	1.67		1,813,868
$3.01-$5.00		125,000		2.3	$	3.11		125,000
		10,808,035		2.8	$	0.81		7,908,435

The summary of the status of the warrants issued by the Company as of June 30, 2015 and December 31, 2014 are as follows:

	6/30/2015					12/31/2014
	Number of Warrants			Weighted Average Exercise Price		Number of Warrants			Weighted Average Exercise Price
Outstanding at beginning of year		16,446,351		$	1.45		16,688,265		$	1.44
Granted		85,615,638		$	0.41		-		$	-
Exercised		(53,095,204	)	$	0.66		-		$	-
Cashless Exercises		-		$	-		-		$	-
Expired and Cancelled		(218,571	)	$	0.66		(241,914	)	$	0.87
		48,748,214					16,446,351

Outstanding, end of period		48,748,214		$	0.50		16,446,351		$	1.45

Exercisable at end of period		48,748,214		$	0.50		16,446,351		$	1.45