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STOCK BASED COMPENSATION
 6 Months Ended 12 Months Ended
Jun. 30, 2013
Dec. 31, 2012
STOCK BASED COMPENSATION [Abstract]    
STOCK BASED COMPENSATION
NOTE 7 - STOCK BASED COMPENSATION

The Company uses the Black-Scholes option pricing model to calculate the grant-date fair value of an award, with the following assumptions for 2013: no dividend yield, expected volatility, based on the Company's historical volatility, 111% to 113%, risk-free interest rate 0.94% to 1.86% and expected option life of five to ten years in 2013.

As of June 30, 2013, there was $545,282 of unrecognized compensation expense related to non-vested market-based share awards that is expected to be recognized through June 2015.

The following tables summarize all stock option and warrant activity of the Company during the three months ended June 30, 2013:

   
Non-Qualified Stock Options and Warrants Outstanding and Exercisable
  
                   
   
Number of
    
Exercise
    
Weighted Average
  
   
Shares
    
Price
    
Exercise Price
  
                   
Outstanding, December 31, 2012
     8,773,500     $0.25 - $1.75     $ 1.13  
                       
Granted
     185,000     $1.00 - $1.16     $ 1.07  
Expired
                      
Forfeited
     (343,750 )   $0.73 - $1.25     $ 0.95  
Exercised
     (32,500 )   $0.345 - $1.25     $ 0.69  
                       
Outstanding, June 30, 2013
     8,582,250     $0.25 - $1.75     $ 1.14  
                       
Exercisable, June 30, 2013
     7,778,503     $0.25 - $1.75     $ 1.16  

Non-Qualified Stock Options and Warrants Outstanding
   
Number Outstanding
  
Weighted Average
  
Weighted Average
Range of
  
Currently Exercisable
  
Remaining
  
Exercise Price of Options and
Exercise Prices
  
at June 30, 2013
  
Contractual Life
  
Warrants Currently Exercisable
             
$0.25 - $1.75
  
7,778,503
  
2.51 Years
  
$1.16
 

NOTE 8 - STOCK BASED COMPENSATION


The Company uses the Black-Scholes option pricing model to calculate the grant-date fair value of an award, with the following assumptions for 2012 and 2011: no dividend yield in both years, expected volatility, based on the Company's historical volatility, between 77% and 217% in 2012 and between 115% and 125% in 2011, risk-free interest rate between 0.13% and 2.26% in 2012 and between 0.82% and 2.15% in 2011 and expected option life of two to ten years in 2012 and three to five years in 2011.


As of December 31, 2012, there was $829,247 of unrecognized compensation expense related to non-vested market-based share awards that is expected to be recognized through December 2014.  


The following tables summarize all stock option and warrant activity of the Company since December 31, 2004:


             

 

 

Non-Qualified Stock Options and Warrants Outstanding and Exercisable

 

 

 

 

 

 

 

 

 

Number of

 

Exercise

 

Weighted Average

 

 

Shares

 

Price

 

Exercise Price

 

 

 

 

 

 

 

Outstanding, December 31, 2004

 

- 

 

 $                 -   

 

$

- 

 

 

 

 

 

 

 

Granted

 

680,000 

 

 $0.25 - $2.10

 

$

0.99 

Exercised

 

(300,000)

 

 $            0.25

 

$

0.25 

 

 

 

 

 

 

 

Outstanding, December 31, 2005

 

380,000 

 

 $1.40 - $2.10

 

$

0.68 

 

 

 

 

 

 

 

Granted

 

1,425,000 

 

 $0.25 - $1.00

 

$

0.70 

Cancelled

 

(260,000)

 

 $1.40 - $2.10

 

$

(0.48)

Expired

 

(70,000)

 

 $1.40 - $2.00

 

$

(0.12)

 

 

 

 

 

 

 

Outstanding, December 31, 2006

 

1,475,000 

 

 $0.25 - $2.00

 

$

0.83 

 

 

 

 

 

 

 

Granted

 

5,768,971 

 

 $0.25 - $0.72

 

$

0.48 

Rescinded

 

(200,000)

 

 $            0.50

 

$

0.50 

Forfeited

 

(125,019)

 

 $            1.00

 

$

1.00 

Expired

 

(574,981)

 

 $            1.00

 

$

1.00 

 

 

 

 

 

 

 

Outstanding, December 31, 2007

 

6,343,971 

 

 $0.25 - $2.00

 

$

0.48 

 

 

 

 

 

 

 

Granted

 

3,495,001 

 

 $0.001 - $1.75

 

$

1.16 

Expired

 

(115,000)

 

 $0.50 - $2.00

 

$

0.07 

Forfeited

 

(750,000)

 

 $            0.72

 

$

0.72 

Exercised

 

(807,770)

 

$0.25 - $0.50

 

$

0.53 

 

 

 

 

 

 

 

Outstanding, December 31, 2008

 

8,166,202 

 

 $0.001 - $1.75

 

$

0.79 

 

 

 

 

 

 

 

Granted

 

939,000 

 

 $0.25 - $0.45

 

$

0.30 

Expired

 

(1,304,451)

 

 $0.25 - $1.00

 

$

0.59 

Forfeited

 

- 

 

 

 

 

Exercised

 

(1,488,384)

 

$0.001 - $1.00

 

$

0.20 

 

 

 

 

 

 

 

Outstanding, December 31, 2009

 

6,312,367 

 

 $0.25 - $1.75

 

$

0.71 

 

 

 

 

 

 

 

Granted

 

1,860,000 

 

 $0.25 - $1.51

 

$

1.20 

Expired

 

(16,667)

 

 $            1.00

 

$

1.00 

Forfeited

 

- 

 

                      -

 

- 

Exercised

 

(1,279,700)

 

 $0.25 - $1.00

 

$

0.42 

 

 

 

 

 

 

 

Outstanding, December 31, 2010

 

6,876,000 

 

 $0.25 - $1.75

 

$

1.01 

 

 

 

 

 

 

 

Granted

 

2,085,000 

 

 $0.63 - $1.30

 

$

1.09 

Expired

 

- 

 

                      -

 

- 

Forfeited

 

(162,500)

 

 $            1.51

 

$

1.51 

Exercised

 

- 

 

                      -

 

- 

 

 

 

 

 

 

 

Outstanding, December 31, 2011

 

8,798,500 

 

 $0.25 - $1.75

 

$

1.02 

 

 

 

 

 

 

 

Granted

 

1,210,000 

 

 $0.90 - $1.69

 

$

1.19 

Expired

 

(25,000)

 

 $              1.25

 

$

1.25 

Forfeited

 

 

 

                      -

 

- 

Exercised

 

(1,210,000)

 

 $0.25 - $1.25

 

$

0.37 

 

 

 

 

 

 

 

Outstanding, December 31, 2012

 

8,773,500 

 

 $0.25 - $1.75

 

$

1.13 

 

 

 

 

 

 

 

Exercisable, December 31, 2012

 

7,714,850 

 

 $0.25 - $1.75

 

$

1.15 




             

Non-Qualified Stock Options and Warrants Outstanding

 

 

Number Outstanding

 

Weighted Average

 

Weighted Average

Range of

 

Currently Exercisable

 

Remaining

 

Exercise Price of Options and

Exercise Prices

 

at December 31, 2012

 

Contractual Life

 

Warrants Currently Exercisable

 

 

 

 

 

 

 

$0.25 - $1.75

 

7,714,850

 

2.71

 

$

1.15