7. Stock Options and Warrants (Tables)

3 Months Ended

Mar. 31, 2013

Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]

Changes in our outstanding stock options

Changes in our outstanding stock options during the three months ended March 31, 2013 were as follows:

	Number of Stock Options		Weighted Average Price		Weighted Average Remaining Contractual Term
Outstanding at December 31, 2012		54,065,045	$	0.12
Granted		4,820,000		0.03
Exercised		–		–
Cancelled or expired		–		–
Outstanding at March 31, 2013		58,885,045	$	0.12		4.82
Exercisable at March 31, 2013		20,547,297	$	0.12
Vested and expected to vest at March 31, 2013		58,885,045	$	0.12		4.82

Stock based compensation expense allocation

Stock based compensation is allocated as follows (in thousands):

Stock-based compensation expense:

	Three Months Ended March 31,
	2013		2012
Sales and marketing	$	131	$	99
General and administrative		264		101
Research and development		75		95
	$	470	$	295

Outstanding warrants to purchase common stock

Changes in outstanding warrants were as follows during the three months ended March 31, 2103:

	Shares of Common Stock
	Issuable from Warrants
	Outstanding as of
Date of Issue	March 31, 2013	Exercise Price	Expiration
November 1, 2009	175,000	$3.50	November 1, 2013
July 1, 2009	600,000	$3.20	February 2014
February 1, 2009	644,166	$1.00	February 1, 2014
July 30, 2012	6,627,000	$0.05	July 30, 2017
August 3, 2012	2,667,000	$0.05	August 3, 2017
August 21, 2012	2,625,000	$0.05	August 21, 2017
February 15, 2013	12,000,000	$0.05	February 15, 2018
	25,338,166