STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2012

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

NOTE 14. STOCKHOLDERS' EQUITY

Common Stock

As of December 31, 2012, we had 10,074,448 shares of common stock issued and outstanding.  We issued 2,805,385 shares of common stock for the year ended December 31, 2012 comprised of 699 shares of common stock issued for the vesting of certain restricted stock awards, 325,000 shares of common stock issued for consulting services, 491,636 shares of common stock issued for the equity raise with Ironridge pursuant to the Common Stock Agreement, 1,987,992 shares of common stock issued for installment payments due on the June 2012 Note with Inter-Mountain, and an adjustment of 58 shares of common stock for fractional shares not issued from our reverse stock split in June 2011.

Preferred Stock

As of December 31, 2012, we had 65 shares of Series A preferred stock issued and outstanding.  For the year ended December 31, 2012, we issued 40 shares of Series A preferred stock to Ironridge Global pursuant to the Series A Agreement.

Warrants

The following table summarizes the warrants outstanding and the number of shares of common stock subject to exercise as of December 31, 2012 and the changes therein during the two years then ended:

	Number of Shares of Common Stock Subject to Exercise			Weighted – Average Exercise Price
Balance as of December 31, 2010		635,873		$	6.69
Warrants issued		203,056			1.43
Warrants exercised		---			---
Warrants cancelled		(226,335	)		13.46
Balance as of December 31, 2011		612,594		$	2.45
Warrants issued (1)		1,428,571			0.35
Warrants exercised		---			---
Warrants cancelled		---			---
Balance as of December 31, 2012		2,041,165		$	0.98

(1 ) As part of the June 2012 Note, Inter-Mountain received a total of seven warrants to purchase, if they all vest, an aggregate of 3,142,857 shares of common stock, which number of shares could increase based upon the terms and conditions of the warrants.  The warrants have an exercise price of $0.35 per share, subject to certain pricing adjustments, and are exercisable, subject to vesting provisions and ownership limitations, until June 27, 2017.  Warrants for 785,714 shares of common stock and 392,857 shares of common stock vested on June 27, 2012 and December 31, 2012, respectively, and only such shares of common stock have been included in this Table, based upon an exercise price of $0.35 per share of common stock.  Each of the other five warrants vest upon the payment by Inter-Mountain of a related Investor Note.

For the year ended December 31, 2012, we issued warrants to purchase up to an aggregate of 1,428,571 shares of our common stock which consisted of (i) a warrant issued for consulting services to purchase up to an aggregate of 250,000 shares of our common stock at an exercise price of $0.35 per share, and (ii) two warrants issued to Inter-Mountain to purchase up to an aggregate of 1,178,571 shares of our common stock at an exercise price of $0.35 per share.

Of the warrant shares subject to exercise as of December 31, 2012, expiration of the right to exercise is as follows:

Date of Expiration	Number of Warrant Shares of Common Stock Subject to Expiration
July 23, 2014		69,050
May 15, 2015		357,155
June 13, 2016		35,000
July 16, 2016		116,667
July 28, 2016		34,722
November 21, 2016		250,000
June 27, 2017		1,178,571
Total		2,041,165