5. STOCKHOLDERS DEFICIT (Tables)

9 Months Ended

Sep. 30, 2012

Equity [Abstract]

Schedule of Stock Options

The following is a summary of the stock option activity for the nine months ended September 30, 2012:

	Shares Outstanding			Weighted Average Exercise Price
BALANCE, December 31, 2011		301,900		$	2.25
Granted		167,500			1.46
Exercised		-			-
Canceled		(8,500	)		1.10
BALANCE, September 30, 2012		460,900		$	2.00

Schedule of Stock Options Outstanding

The following table summarizes information about stock options outstanding at September 30, 2012:

Exercise Price		Number of  Options  Outstanding		Average  Remaining  Contractual  Life (Years)		Weighted  Average  Exercise  Price		Currently Exercisable Number of  Shares		Weighted  Average  Exercise  Price
$	0.90		8,400		9.2	$	.90		2,100	$	.90
$	1.10		50,000		8.3	$	1.10		25,000	$	1.10
$	1.14		132,500		8.8	$	1.14		87,500	$	1.14
$	1.35		20,000		9.2	$	1.35		20,000	$	1.35
$	1.39		5,000		9.8	$	1.39		1,250	$	1.39
$	1.45		75,000		10.0	$	1.45		-	$	1.45
$	1.49		5,000		9.9	$	1.49		-	$	1.49
$	1.50		75,000		9.8		1.50		-	$	1.50
$	2.50		5,000		3.8	$	2.50		5,000	$	2.50
$	3.25		15,000		6.3	$	3.25		15,000	$	3.25
$	3.50		25,000		1.8	$	3.50		25,000	$	3.50
$	5.00		25,000		2.8	$	5.00		25,000	$	5.00
$	8.55		20,000		3.1	$	8.55		20,000	$	8.55
Totals			460,900		6.7	$	2.00		225,850	$	2.67