STOCK OPTION PLAN AND WARRANTS (Tables)

12 Months Ended

Dec. 31, 2015

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

	12/31/2015					12/31/2014
	Number of Shares			Weighted Average Exercise Price		Number of Shares			Weighted Average Exercise Price
Outstanding at beginning of year		11,033,675		$	1.05		9,583,762		$	1.16
Granted		6,299,600		$	0.29		2,372,800		$	0.58
Exercised		-					-		$	-
Expired and Cancelled		(6,230,000	)	$	0.77		(922,887	)	$	0.99
		11,103,275					11,033,675

Outstanding, end of period		11,103,275		$	0.78		11,033,675		$	1.05


Exercisable at end of period		10,328,925		$	0.82		11,033,675		$	1.05

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.

	12/31/2015	12/31/2014
Weighted average fair value per option granted	$0.14 - $0.36	$0.31 - $0.50
Risk-free interest rate	1.00% - 1.54%	0.86 - 1.75%
Expected dividend yield	0.00%	0.00%
Expected lives	2.688 - 3.000	2.6875
Expected volatility	86.22% - 120.51%	82.11 - 98.91%

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

	12/31/2015					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		87,825,204		$	0.42		-		$	-
Exercised		(53,095,204	)	$	0.66		-		$	-
Cashless Exercises		-			-		-		$	-
Expired and Cancelled		(218,571	)	$	0.66		(241,914	)	$	0.87
		50,957,780		$	0.52		16,446,351			-

Outstanding, end of period		50,957,780		$	0.52		16,446,351		$	1.44

Exercisable at end of period		50,957,780		$	0.52		16,446,351		$	1.44