STOCK OPTIONS AND WARRANTS

9 Months Ended

Sep. 30, 2013

Stock Options And Warrants

STOCK OPTIONS AND WARRANTS

Warrants

During the nine months ended September 30, 2013, the Company issued warrants to purchase an aggregate total of 1,919,321 shares of the Company’s Common Stock to certain accredited investors participating in the Offering that commenced on June 20, 2013. The Company issued 683,106 Warrants to a financial institution in connection with the Offering. Each warrant is exercisable over the course of a five-year term to $1.10 per share.

During the nine months ended September 30, 2013, the Company extended the expiration date on 860,086 warrants from April 30, 2013 to November 29, 2013. Costs related to the modification of the warrants are immaterial.

A summary of the Company’s warrant activity for the nine months ended September 30, 2013 is presented below:

	Warrants Outstanding		Weighted Average Exercise Price
Outstanding, December 31, 2012		132,340	$	42.53
Granted		3,462,513		0.549
Exercised		-		-
Expired		(12,387)		187.09
Outstanding, September 30, 2013		3,582,466	$	1.86

As of September 30, 2013, the Company had the following outstanding warrants to purchase its Common Stock:

Warrants Outstanding		Weighted Average Exercise Price Per Share		Weighted Average Remaining Life (Yrs)
	118,953	$	27.58		1.56
	1,000	$	30.00		2.17
	860,086	$	0.55		0.16
	2,602,427	$	1.10		4.77
	3,582,466	$	1.86		3.56

Non-Qualified Stock Options

The Company granted 245,739 non-qualified stock options to employees during the nine months ended September 30, 2013.

Stock option activity during the nine months ended September 30, 2013 is summarized as follows:

	Options Outstanding		Weighted-Average Exercise Price
Options outstanding at December 31, 2012		3,870,389	$	0.69
Exercised		-		-
Granted		245,739		1.10
Forfeited		(122,870)		1.02
Expired		-		-
Options outstanding at September 30, 2013		3,993,258	$	0.70

 The following table summarizes information about the Company’s stock options outstanding as of September 30, 2013:

		Outstanding Options
				Weighted Average				Exercisable Options
				Remaining		Aggregate				Aggregate
Range of				Contractual Life		Intrinsic				Intrinsic
Exercise Prices		Number		(Years)		Value		Number		Value
$	0.61		3,133,173		1.79	$	-		1,310,610	$	-
$	1.02		614,346		1.63	$	-		184,305		-
$	1.10		245,739		2.75	$	-		-	$	-
Totals			3,993,258		1.88	$	-		1,494,915	$	-