Equity Transactions

3 Months Ended

Mar. 31, 2012

Equity Transactions [Abstract]

Equity Transactions

9. Equity Transactions

Warrants

In March 2012, the Company entered into a consulting agreement and pursuant to such consulting agreement, the Company issued a warrant to the consultant to purchase an aggregate of 500,000 shares of the Company's common stock at an exercise price of $2.50 per share. The warrant vests 25% on the last day of September 2012, December 2012, March 2013 and June 2013 and the warrant expires on March 1, 2015. The fair value of the warrants of $0.3 million was determined on the grant date using the Black-Scholes-Merton valuation method with the following assumptions: risk free interest rates of 1.17%, volatility of 77.8%, a 1 year term and no dividends yield.