SHARE BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2012

SHARE BASED COMPENSATION [Abstract]

Weighted average assumptions to estimate the fair value of share based awards

We account for share-based compensation under ASC Topic 718, Stock Compensation, which requires the measurement and recognition of compensation expense in the financial statements for all share-based payment awards made to employees, consultants, and directors is measured based on the estimated fair value of the award on the grant date.  We use the Black-Scholes option-pricing model to estimate the fair value of share-based awards with the following weighted average assumptions for the years ended December 31:

	2012		2011
Incentive Stock Options  (4)
Expected volatility  (1)		---		94.6	%
Risk-fee interest rate %  (2)		---		1.93	%
Expected term (in years)		---		6.0
Dividend yield  (3)		---		0.0	%
Nonstatutory Stock Options  (5)
Expected volatility  (1)		---		---
Risk-fee interest rate %  (2)		---		---
Expected term (in years)		---		---
Dividend yield  (3)		---		---

(1)	Expected volatility assumption was based upon a combination of historical stock price volatility measured on a daily basis and an estimate of expected future stock price volatility.
(2)	Risk-free interest rate assumption is based upon U.S. Treasury bond interest rates appropriate for the term of the stock options.
(3)	The Company does not currently intend to pay cash dividends, thus has assumed a 0% dividend yield.
(4)	The Company did not award any incentive stock options for the year ended December 31, 2012.
(5)	The Company did not award any nonstatutory stock options for the years ended December 31, 2012 and 2011, respectively.

Stock option awards granted

Our Board of Directors granted the following incentive stock option awards to executives or employees and nonstatutory stock option awards to directors or non-employees for the years ended December 31:

	2012		2011
Incentive Stock Options (1)
Quantity		---		1,334
Weighted average fair value per share		---	$	1.15
Fair value		---	$	1,534
Nonstatutory Stock Options (2)
Quantity		---		---
Weighted average fair value per share		---		---
Fair value		---		---

(1)	The Company did not award any incentive stock options for the year ended December 31, 2012.
(2)	The Company did not award any nonstatutory stock options for the years ended December 31, 2012 and 2011, respectively.

Allocated share-based compensation expense

The following table summarizes share-based compensation related to stock options for the years ended December 31:

	2012		2011
Research and development	$	6,280	$	53,330
Selling, general and administrative		31,617		90,108
Total share-based compensation expense	$	37,897	$	143,438

The following table summarizes share-based compensation related to restricted stock awards for the years ended December 31:

	2012		2011
Research and development	$	3,762	$	16,205
Selling, general and administrative		4,535		11,483
Total share-based compensation expense	$	8,297	$	27,688

Stock option activity

The following table summarizes the stock options 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:

	Stock Options			Weighted Average Exercise Price per Share
Outstanding as of December 31, 2010		290,411		$	16.76
Granted		1,334			1.50
Forfeited/cancelled		(4,000	)		2.40
Exercised		---			---
Outstanding as of December 31, 2011		287,745			16.89
Granted		---			---
Forfeited/cancelled		(129,336	)		22.49
Exercised		---			---
Outstanding as of December 31, 2012		158,409		$	12.32

Stock option grants outstanding and exercisable

The following table presents the stock option grants outstanding and exercisable as of December 31, 2012:

Options Outstanding						Options Exercisable
Stock Options Outstanding		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life in Years		Stock Options Exercisable		Weighted Average Exercise Price per Share
	118,671	$	5.37		5.7		90,837	$	6.24
	19,335		23.80		4.7		19,335		23.80
	16,069		34.52		5.1		16,069		34.52
	4,334		69.22		4.3		4,334		69.22
	158,409	$	12.32		5.5		130,575	$	14.41

Nonvested restricted stock awards

The following table summarizes the non-vested restricted stock awards outstanding and the number of shares of common stock subject to potential issue as of December 31, 2012 and the changes therein during the two years then ended:

	Restricted Stock			Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2010		6,336		$	14.23
Granted		---			---
Forfeited/cancelled		---			---
Exercised/issued		(5,240	)		8.53
Outstanding as of December 31, 2011		1,096		$	41.47
Granted		---			---
Forfeited/cancelled		(97	)		34.59
Exercised/issued		(699	)		45.39
Outstanding as of December 31, 2012		300		$	34.59