SHARE BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 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 and nine months ended September 30:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012 (3)
Incentive Stock Options  (1)
Quantity		---		---		232,500		---
Weighted average fair value per share		---		---	$	0.24		---
Fair value		---		---	$	56,112		---
Nonstatutory Stock Options  (2)
Quantity		---		---		735,000		---
Weighted average fair value per share		---		---	$	0.24		---
Fair value		---		---	$	177,388		---

(1)	The Company did not award any incentive stock options for the three months ended September 30, 2013 and 2012, respectively.
(2)	The Company did not award any nonstatutory stock options for the three months ended September 30, 2013 and 2012, respectively.
(3)	The Company did not award any shared-based compensation for the nine months ended September 30, 2012.

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

We use the Black-Scholes option-pricing model to estimate the fair value of share-based awards with the following weighted average assumptions:

		Nine Months Ended September 30,
		2013	2012
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.

Allocated share-based compensation expense

The following table summarizes share-based compensation related to stock options for the three and nine months ended September 30:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Research and development	$	5,425	$	---	$	11,438	$	6,280
Selling, general and administrative		19,662		6,760		44,414		25,753
Total share-based compensation expense	$	25,087	$	6,760	$	55,852	$	32,033

The following table summarizes share-based compensation related to restricted stock awards for the three and nine months ended September 30:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Research and development	$	---	$	( 391	)	$	444	$	2,814
Selling, general and administrative		---		1,143			547		3,392
Total share-based compensation expense	$	---	$	752		$	991	$	6,206

Stock option activity

The following table summarizes the stock options outstanding and the number of shares of common stock subject to exercise as of September 30, 2013 and the changes therein during the nine 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		(111,002	)		1.03
Exercised		---			---
Outstanding as of September 30, 2013		1,014,907		$	2.12

Stock option grants outstanding and exercisable

The following table presents the stock option grants outstanding and exercisable as of September 30, 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
	892,500	$	0.33		9.5		197,500	$	0.33
	53,334		2.38		4.7		46,668		2.36
	30,002		14.40		3.5		30,002		14.40
	39,071		33.35		4.1		39,071		33.35
	1,014,907	$	2.12		8.8		313,241	$	6.10

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 September 30, 2013 and the changes therein during the nine 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 September 30, 2013		---		$	---