Options And Warrants

9 Months Ended

Sep. 30, 2011

Options And Warrants [Abstract]

Options And Warrants

7. Options and warrants

The Company's 2006 Incentive Compensation Plan authorizes up to 2,000,000 shares of common stock to any employee or Consultant during any one calendar year for grants of both incentive stock options and non-qualified stock options to key employees, officers, directors, and consultants. Options granted under the Plan must be exercised within a term determined by the Board of Directors. The Option Price payable for the shares of Common Stock covered by any Option shall be determined by the Board of Directors, provided that such exercise price shall not be less than 100% of the Fair Market Value of a Share on the date of grant of the Option and shall not, in any event, be less than the par value of a Share on the date of grant of the Option. The Company granted 0 options from this plan.

The Company's 2008 Incentive Compensation Plan authorizes up to 5,000,000 shares of common stock to employees or the consultants, unless contained in the written award approved by the Board of Directors. As of September 30, 2011, The Company granted 800,000 and 1,600,000 options to consultants during the three and nine month periods ended September 30, 2011, respectively.

The Company's 2011 Incentive Compensation Plan authorizes up to 5,000,000 shares of common stock to employees or the consultants, unless contained in the written award approved by the Board of Directors. As of September 30, 2011, The Company has not granted any options from this plan.

The fair value of each option under the 2006, and 2008 Incentive Compensation Plan was estimated on the date of grant using the Black Scholes model that uses assumptions noted in the following table. Expected volatility is based on the Company's historical market price at consistent points in periods equal to the expected life of the options. The expected term of options granted is based on the Company's historical experience. The risk-free interest rate for the periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The Company estimates forfeitures; both at the date of grant as well as throughout the requisite service period, based on the Company's historical experience and future expectations.

The aggregate intrinsic value of options outstanding and exercisable at September 30, 2011, based on the Company's closing stock price of $0.10 was $0. The aggregate intrinsic value of options outstanding and exercisable at September 30, 2010, based on the Company's closing stock price of $0.20 was $90,000. Intrinsic value is the amount by which the fair value of the underlying stock exceeds the exercise price of the options.

During the three months ended September 30, 2011 and 2010, the Company issued 0 and 0 options and warrants, respectively, in conjunction with the issuance of common stock. During the nine months ended September 30, 2011 and 2010, the Company issued 800,000 and 33,000 options and warrants, respectively, in conjunction with the issuance of common stock. The warrants entitle the holder to purchase 800,000 and 33,000 shares of the Company's common stock, respectively, at any time, at an exercise price of $0.30 per share.

The following table represents our stock option and warrant activity for the nine months ended September 30, 2011:

	Shares			Range of Exercise Prices		Weighted Average Grant Date Fair Value
Outstanding and Exercisable
Outstanding at December 31, 2010		3,215,413		$	0.10 – 2.00
Options and warrants granted		1,600,000		$	0.15 – 0.30	$	0.23
Options and warrants exercised
Options and warrants cancelled or expired		(260,000	)	$	2.00
Outstanding at September 30, 2011		4,555,413		$	0.10 – 1.00
Exercisable at September 30, 2011		4,555,413		$	0.10 – 1.00

The following table summarizes information about options and warrants outstanding and exercisable as of September 30, 2011:

	Outstanding Options and Warrants						Exercisable Options and Warrants
Range of Exercise Price	Number Outstanding		Weighted Average Remaining Life		Weighted Average Price		Weighted Average Remaining Life		Number Exercisable		Weighted Average Price
$0.10 - $1.00		4,555,413		3.96	$	0.29		3.96		4,555,413	$	0.29

Net cash proceeds from the exercise of options and warrants were $0 for each of the nine months ended September 30, 2011 and 2010.