SHARE BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2013

SHARE BASED COMPENSATION [Abstract]

Stock option awards granted

Our Board granted the following incentive stock option awards to executives or employees and nonstatutory stock option awards to directors or non-employees for the three months ended March 31:

	Three Months Ended March 31,
	2013		2012
Incentive Stock Options
Quantity		232,500		---
Weighted average fair value per share	$	0.24		---
Fair value	$	56,112		---
Nonstatutory Stock Options
Quantity		735,000		---
Weighted average fair value per share	$	0.24		---
Fair value	$	177,388		---

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

We account for share-based compensation under FASB ASC Topic 718, Stock Compensation, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, consultants, and directors based on estimated fair values 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 three months ended March 31:

	2013			2012(4)
Incentive Stock Options
Expected volatility  (1)		103.55	%		---
Risk-free interest rate %  (2)		0.81	%		---
Expected term (in years)		5.0			---
Dividend yield  (3)		---			---
Forfeiture rate		---			---
Nonstatutory Stock Options
Expected volatility  (1)		103.55	%		---
Risk-free interest rate %  (2)		0.81	%		---
Expected term (in years)		5.0			---
Dividend yield  (3)		---			---
Forfeiture rate		---			---

(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 shared-based compensation for the three months ended March 31, 2012.

Allocated share-based compensation expense

The following table summarizes share-based compensation related to stock options for the three months ended March 31:

	Three Months Ended  March 31,
	2013		2012
Research and development	$	648	$	6,280
Selling, general and administrative		8,333		15,671
Total share-based compensation expense	$	8,981	$	21,951

The following table summarizes share-based compensation related to restricted stock awards for the three months ended March 31:

	Three Months Ended  March 31,
	2013	2012
Research and development	$       444	$    1,594
Selling, general and administrative	547	1,118
Total share-based compensation expense	$       991	$    2,712

Stock option activity

The following table summarizes the stock options outstanding and the number of shares of common stock subject to exercise as of March 31, 2013 and the changes therein during the three months then ended:

	Stock Options			Weighted Average Exercise Price per Share
Outstanding as of December 31, 2012		158,409		$	12.32
Granted		967,500			0.33
Forfeited/cancelled		(2,668	)		1.80
Exercised		---			---
Outstanding as of March 31, 2013		1,123,241		$	2.02

Stock option grants outstanding and exercisable

The following table presents the stock option grants outstanding and exercisable as of March 31, 2013:

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
	967,500	$	0.33		10.0		122,500	$	0.33
	86,668		2.45		5.9		60,001		2.40
	30,002		14.40		4.0		30,002		14.40
	39,071		33.35		4.6		39,071		33.35
	1,123,241	$	2.02		9.3		251,574	$	7.63

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 March 31, 2013 and the changes therein during the three months then ended:

	Restricted stock			Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2012		300		$	34.59
Shares granted		---			---
Shares forfeited/cancelled		---			---
Shares exercised/issued		(300	)		34.59
Outstanding as of March 31, 2013		---		$	---