WARRANTS

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Note 14. WARRANTS

In May 2007 the Company closed a $3,042,455 private placement with institutional investors. The Company sold 936,140 units at a price of $3.25 per unit. Each unit consisted of one share of common stock and one-half warrant with a three year term and an exercise price of $4.50 per share. The Company also issued 21,970 warrants with the same terms for investment banking services related to this transaction.

In February 2010, the Company amended the warrants granted in 2007 to a per share exercise price of $3.00 and extended the exercise term until December 31, 2010.

The following table summarizes the Company’s warrant activity for the three years ended December 30, 2010:

	Number of Shares		Exercise price per share		Weighted average exercise price
Balance December 31, 2007 and 2008		1,477,440	$	4.50	$	4.50
Granted		-		-		-
Exercised		-		-		-
Cancelled/Expired		987,400	$	4.50	$	4.50
Balance December 31, 2009		490,040	$	3.00	$	3.00
Granted
Exercised
Cancelled/Expired		490,040	$	3.00	$	3.00
Balance December 31, 2010		-		-		-