STOCK OPTIONS, WARRANTS AND DERIVATIVE LIABILITIES

Stock Option Awards

The Company grants share-based awards under the 2008 Stock and Incentive Compensation Plan ("2008 Plan") and the 2011 Non-Employee Director Stock Option Program ("Director Program"), which, among other things, (a) encourages employees and directors to help increase the profitability and growth of the Company; (b) provide competitive compensation to employees; (c) attract and retain exceptional personnel and encourage excellence in the performance of individual responsibilities; and (d) motivate key employees and directors to contribute to the Company's success.

The fair value of the share-based payments is recognized as compensation expense over the various expected lives of the different options. For the three months ended June 30, 2012 and 2011, compensation expense charged to income was $160,269 and $105,720, respectively. For the six months ended June 30, 2012 and 2011, compensation expense was $312,564 and $201,297, respectively.

The amount of unrecognized compensation expense for all share-based awards as of June 30, 2012 was approximately $2,117,801, which is expected to be recognized over a weighted-average remaining life of approximately 3.84 years.

The table below identifies the Company's June 30, 2012 and the year ended December 31, 2011 options granted for Officers, employees and Directors and the factors used to value the share-based compensation expense for each option.



Option Schedule and Valuation Assumptions for 2012 and 2011 Options
Grant Date	Expiration Date	Option Term in Years	Number of Options	Exercise Price		Market Price at Grant Date		Estimated Life for Valuation (Years)	Volatility Factor		Risk Free Return Factor		Valuation Per Option		Total Compensation Expense
2/2/2011	2/2/2021	10.00	100,000	$	2.62	$	2.62	3.5	72.15	%	1.12	%	$	1.344	$	134,350
2/2/2011	2/2/2021	10.00	100,000	$	2.62	$	2.62	4.5	72.15	%	2.10	%	$	1.523	$	152,272
2/2/2011	2/2/2021	10.00	100,000	$	2.62	$	2.62	5.5	72.15	%	2.10	%	$	1.578	$	157,843
8/15/2011	8/15/2021	10.00	50,000	$	2.96	$	2.96	3.0	78.36	%	0.34	%	$	1.496	$	74,794
8/23/2011	1/31/2013	1.44	50,000	$	1.81	$	2.96	1.44	77.821	%	0.22	%	$	1.542	$	77,078
8/23/2011	8/23/2021	10.00	125,000	$	2.96	$	2.96	3.0	77.821	%	0.38	%	$	1.488	$	186,001
12/9/2011	12/9/2021	10.00	300,000	$	2.25	$	2.25	9.95	104.088	%	0.82	%	$	1.712	$	513,480
12/9/2011	12/9/2021	10.00	275,000	$	2.25	$	2.25	9.95	104.088	%	1.82	%	$	2.045	$	562,507
3/5/2012	3/5/2022	10.00	100,000	$	2.73	$	2.73	5.0	113.393	%	0.87	%	$	2.180	$	217,910

During the year ended December 31, 2011

On February 2, 2011, the Compensation Committee of the Board granted three options to the CEO of 100,000 options each year for three years for one common share each, exercisable if the CEO stays through December 31st of the current and the next two succeeding years. The first option became exercisable on December 31, 2011 The valuation and the factors used to value these options are listed in the table above.

In connection with the employment of the Company's new COO, an option for 50,000 shares was granted on August 15, 2011. It may be exercised on the one year anniversary of the grant date. The valuation and the factors used to value these options are listed in the table above.

On August 23, 2011, the board of directors adopted the Director Program and reserved 500,000 of the shares authorized for issuance under the 2008 Plan for the stock options to be awarded under the Director Program. The Director Program provides that each non-employee director automatically receives an award of options to purchase 25,000 shares each year upon election at each annual meeting. The options have a ten-year term and become exercisable on the first anniversary of the award date. The exercise price is trading price at close of trading on the award date, which was $2.960 for initial grant of 125,000 options on August 23, 2011. Vested options may be exercised for one year following termination of service due to death or disability. Unvested options will become fully exercisable upon a change of control, as defined by the 2008 Plan. The valuation and the factors used to value these options are listed in the table above.

In addition, one director was granted an option to acquire 50,000 common shares on August 23, 2011 under the same terms granted to the officers, employees and directors present for the August 18, 2008 award. The valuation and the factors used to value these options are listed in the table above.

On December 9, 2011, the Company awarded options to purchase 300,000 common shares to the Executive Officers other than the CEO and options to purchase 275,000 common shares to for the other employees. The valuation and the factors used to value these options are listed in the table above.

During the first two quarters ended June 30, 2012

On February 2, 2011, the Executive Compensation Committee approved awards of performance-based options to purchase up to 100,000 shares annually to our CEO based upon the achievement of predetermined goals for financial results, business and product development, capital market milestones, and organizational initiatives in each of December 31, 2011, December 31, 2012 and December 31, 2013. On March 5, 2012, the committee determined that Mr. Turner's performance in 2011 had satisfied the objective and subjective criteria for performance-based options and awarded him 100,000 options exercisable at $2.725 per share. The valuation and the factors used to value these options are listed in the table above.

A summary of stock option activity for 2012 and 2011 is as follows:



	Shares		Weighted average exercise price
Outstanding at December 31, 2010	3,908,471		$2.060
Granted	1,100,000		$2.440
Exercised	(1,050,000	)	$1.810
Expired/Forfeited	(187,662	)	$2.930
Outstanding at December 31, 2011	3,770,809		$2.200
Granted	100,000		$2.725
Exercised	(33,000	)	$2.250
Outstanding at June 30, 2012	3,837,809		$2.214

The following table summarizes information about stock options outstanding and exercisable at June 30, 2012:



Exercise Price		Options outstanding	Weighted average remaining contractual life (years)	Options exercisable
$1.81		1,950,000	0.5885	None
$1.81		100,000	0.5885	None
$3.85		122,079	6.9051	122,079
$4.24		25,974	1.9051	25,974
$3.65		47,256	7.2647	47,256
$2.70		425,500	8.2473	425,500
$2.62		100,000	3.5912	100,000
$2.62	*	100,000	3.5912	None
$2.62	*	100,000	3.5912	None
$2.96	*	50,000	9.1233	None
$2.96	*	125,000	9.1452	None
$1.81		50,000	0.5885	None
$2.25		542,000	9.4408	575,000
$2.73		100,000	9.6760	100,000
$2.21		3,837,809	3.8412	1,395,809

* - Non-vested at June 30, 2012 or December 31, 2011. Weighted average remaining life at June 30, 2012.

The following table summarizes information about non-vested options for the year ended December 31, 2011 and the six months ended June 30, 2012.



	Shares		Weighted Average Grant Date Fair Value			Per Share Fair Value
Outstanding Non-Vested Options 1/1/2011	—		—			—
Granted 2011	1,100,000		$	1,858,535		$1.690
Vested 2011	(725,000	)	$	(1,285,168	)	$1.773
Forfeited 2011	—		$	—
Outstanding Non-Vested Options at 12/31/2011	375,000		$	573,367		$1.529
Granted 2012	100,000		$	272,500		$2.725
Vested 2012	(100,000	)	$	(272,500	)	$2.725
Forfeited 2012	—
Outstanding Non-Vested Options at 6/30/2012	375,000		$	573,367		$1.529

The weighted average fair value per share of options granted was $2.440 for 2011 and $2.725 for the six months ended June 30, 2012. The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:



	June 30, 2012		2011
Dividend yield	—	%	—	%
Expected volatility	98.533	%	90.03	%
Expected lives	5.00		5.63
Risk-free interest rate	0.41	%	1.23	%

The weighted average remaining contractual life of all options outstanding at December 31, 2011 was 4.64 years and at June 30, 2012 is 3.84 years. In addition to outstanding stock options, our stockholders have authorized an additional 1,816,529 shares of common stock that may be issued under the share-based payment plans.

The following table summarizes our outstanding non-vested stock options:



Grant	Number	Exercise	Contractual
Date	of Shares	Price	Life in Years

2/2/2011	200,000	$2.62	3.59
8/15/2011	50,000	$2.96	9.12
8/23/2011	125,000	$2.96	9.15
Totals	375,000	$2.78	6.18

As of December 31, 2011, we had $484,816 of total unrecognized compensation cost related to unvested options, net of expected forfeitures, which is expected to be recognized over the following periods: 2012 - $149,816, 2013 - $149,816, 2014 - $118,434 2015 - $49,254and 2016 - $17,496.



	2012		2013		2014		2015		2016
Unearned Compensation to be Expensed by Year	$	149,816	$	149,816	$	118,434	$	49,254	$	17,496

On May 29, 2012, a former employee exercised his option to acquire 33,000 shares of the Company's common stock. The option was granted on December 9, 2011. The fair value of the stock on the exercise date was $2.71. The exercise price was 2.25. The gain on the exercise, taxed as compensation to the employee, was $15,015. The Company issued 3,517 shares net of the 27,449 shares necessary to exercise the option and the 2,034 shares needed to cover the withholding taxes for a net issuance of 3,517 shares.

Stock purchase warrants

Our preferred stockholders received one Series A warrant and one Series B warrant for each of the 6,668,229 shares of Series A Stock they purchased on December 28, 2007. For making a total investment of at least $5 million, VOMF also received one Series J warrant and one C warrant for each of the 5,975,116 shares of Series A Stock it purchased. In 2008, VOMF and VCAF exercised the Series J warrants in full for cash and received 1,493,779 shares of new Series B Stock, which is convertible into four common shares for each share of Series B Stock. In March 24, 2009, VMOF and VCAF delivered $3,000,000 of cash and all of the A, B and C warrants they held, receiving in exchange 1,571,523 shares of new Series C Stock, which is convertible into ten common shares for each share of Series C Stock.

Series A and Series B Warrants.

As of June 30, 2012 and December 31, 2011, 512,941 Series A warrants and 512,941 Series B warrants remained outstanding. Each Series A warrant entitles holder to purchase one share of common stock at a purchase price of $1.81 per share. Each Series B warrant entitles holder to purchase one share of common stock at a purchase price of $1.99 per share. Both the Series A and Series B warrants may be exercised through December 28, 2012.

The purchase price per share of both the Series A and Series B warrants is subject to adjustment in the event of any stock dividend, stock split, recapitalization, reclassification, merger or similar event. In addition, the purchase price is subject to adjustment in the event of the issuance of additional shares of common stock or common stock equivalents, or other distributions made to the holders of common stock other than permitted issuances.

The warrant holders have the same buy-in rights and registration rights as holders of Series A preferred described in Note 9, above.

If the resale registration statement covering the common shares underlying the Series A and Series B warrants is no longer in effect, the holders may, in lieu of exercising their warrants for cash, make a cashless exercise and receive a number of common shares having a market value equal to the difference between the then-current market value of the number of shares for which the warrant is exercised and the exercise price for those shares.

Series AA Warrants.

The Company issued Series AA warrants to purchase 533,458 common shares for $1.81 per share as compensation for financial advisory services rendered by SC Capital Partners, LLC in connection with the sale of the preferred stock and warrants on December 28, 2007. One warrant holder exercised 79,663 of these warrants, on a cashless basis, in exchange for 16,972 common shares on June 30, 2012. The fair value on the date of exchange was based on $2.30 for the Company's stock and the exercise price of $1.81. The remaining Series AA warrants totaled 453,795. The terms of the Series AA warrants are similar to the Series A warrants and expire on December 28, 2012 .

As consideration for interim financing provided to the Company by VOMF from February through August in 2010, the Company issued VOMF warrants to purchase 325,000 common shares at $3.00 per share and 416,672 shares at $4.00 per share. These warrants expire at various dates in 2015.

See the table below for information about the valuation of the Company's outstanding warrants pursuant to the Black-Scholes method.

Derivative Liabilities and Valuation

The Series A Stockholders have the right to redeem their shares if certain events occur. In accounting for this embedded conversion feature, the Company considered ASC 815 (formerly FASB SFAS 133, Accounting for Derivative Instruments and Hedging Activities and EITF 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in a Company’s own stock) and ASC 470 (formerly EITF 98-5, Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Features, and EITF 00-27, Application of Issue No. 98-5 to Certain Convertible Instruments). Under this guidance, the classification of an issuer’s convertible preferred stock as permanent equity depends upon the issuer having control with respect to the manner of redemption of the convertible preferred stock.

The right of Series A Stockholders to redeem their shares arises first in the event of a consolidation or merger that would result in a change of control of the Company, the sale of 50% of its assets, or a purchase of 50% of the outstanding shares of the Company’s common stock. Mergers, consolidations and asset sales require approval by the board of directors. A third party could purchase 50% of the outstanding shares only from the Company directly or in a voluntary sale by one or more common shareholders. These circumstances, being characteristic of all equity, do not preclude classification as equity.

Of the other seven events triggering the right of Series A Stockholders to redeem their shares, four are events for which the issuer has the option to redeem in either cash or common shares. The redemption ratio is fixed and adjusts only if the Company sells common shares at a price less than the price per share at which the preferred stock converts into common stock. In other words, the adjustments to the ratio are not of a dilutive nature that would generally give rise to liability treatment.

The other triggering events would occur only through purposeful actions by the Company or otherwise within its control.

•

As of June 30, 2012, the Company had 90,000,000 common shares authorized and 12,904,455 common shares issued and outstanding. Therefore, the Company had a sufficient number authorized and unissued common shares to convert all of the preferred stock at the conversion ratio then in effect had a notice of conversion been presented as of that date, meeting the “current status” test of ASC 815 (formerly EITF 00-19).


•	The deregistration of Company’s common stock is within its control;


•	The consummation of a going private transaction is within the Company’s control.

Based on the foregoing analysis, the Company concluded that the embedded conversion feature would not be separately accounted for as a derivative liability from the Series A Stock.

In accordance with this guidance, the Company recorded a deemed dividend in the amount of $3,975,120 by increasing the retained deficit and increasing additional paid in capital by that amount effective on December 28, 2007 to reflect the estimated fair value of the embedded conversion feature in the Series A Stock. The $3,975,120 amount represents the approximately $0.60 difference per share between the$1.81 liquidation value per share of the preferred stock and the$1.21 per share value of the warrants. This amount would normally be amortized over the period between the issue date and the conversion date, but because the Series A Stock is convertible immediately upon issuance, the entire amount was charged to retained earnings as a deemed dividend and an increase to additional paid in capital.

We have used the Black-Scholes option valuation model to value our stock purchase warrants. However, the Black-Scholes model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of subjective assumptions including the expected stock price volatility and appropriate adjustments for restrictions on exercising the options. Because our warrants have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, this model does not necessarily provide a reliable single measure of the fair value of its warrants. Assumptions used in valuing the Series A and Series B warrants included an expected term of 2.5 years, volatility of 43.54%, and an equivalent bond yield of 4.36%.

Effective for financial statements issued for fiscal periods beginning after December 15, 2008, or interim periods therein, ASC 815 (formerly, EITF 07-05) requires that warrants and convertible instruments with certain conversion or exercise price protection features be recorded as derivative liabilities on the balance sheet based on the fair value of the instruments.

The warrants we issued on December 28, 2007 possess features covered by ASC 815. The warrants provide for cashless exercise after one year. They also provided that if before January 1, 2009, we issued any additional shares of common stock at a price per share less than $1.81 (or the adjusted warrant exercise price then in effect) or without consideration, then the exercise price would adjust to the price per share paid for the additional shares of common stock upon each such issuance.

To reflect the cumulative effect of adopting ASC 815, the Company reduced Additional Paid in Capital by $6,321,081, increased its Accumulated Deficiency by $35,081,114 and recorded a liability of $41,402,196 as of January 1, 2009. The amount of the liability was determined by reference to the fair value of the warrants on that date under FASB ASC 820 (formerly SFAS 157).

ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:


•	Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available.


•	Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.


•	Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. For example, level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method.

We concluded there was insufficient trading frequency and volume in MedPro's shares to use the Level 1 inputs to value our warrants in a Black-Scholes calculation under ASC 820 as of January 1, 2009. In particular, we considered that nearly 99% of our outstanding common shares were restricted securities that could not be traded in public markets through January 4, 2009, and our stock continued to trade sporadically thereafter. We also considered the volatility of the trading price, and the time it would take the market to absorb an influx of over 19,000,000 shares underlying the warrants based on then current trading volumes. Accordingly, we used level 2 inputs and level 3 inputs for purposes of our ASC 815 and ASC 820 analysis.

The liability for the warrants exchanged for $3,000,000 of cash and a total of 1,571,523 shares of new Series C Stock in March 24, 2009 was recomputed using the Black-Scholes method with updated inputs, and the difference was recorded as income from the decline in debt due to the reduction in fair value of the outstanding warrants at March 24, 2009, immediately before the exchange. The valuation difference on these warrants was $21,237,919, which accounts for the substantial portion of the total gain of $21,603,185 reported for the year ended December 31, 2009.

As of August 12, 2009, the Company's registration statement became effective, terminating the cashless exercise feature. A total of 1,025,882 Series A and B warrants remained outstanding at December 31, 2009, and all of the derivative liability had been written off or recognized as gain.

All of the warrants we issued in 2010 possess cashless exercise and anti-dilution features covered by ASC 815.

The following factors were used to value the warrants which were issued beginning in the first quarter of 2010 through the current date:



	Warrants Issue with Debt
Grant Date	2/26/2010			3/31/2010			4/30/2010		6/3/2010		6/30/2010		8/5/2010		Totals
Stock Price at Issue	$	3.40		$	3.10		$	3.00	$	3.00	$	3.00	$	2.70
Exercise Price	$	4.00		$	4.00		$	3.00	$	3.00	$	3.00	$	3.00
Warrants Granted in Connection with Debt	212,500			112,500			208,334		50,001		75,002		83,335		741,672
Warrant Term in Years	5			5			5		5		5		5

3/31/2010
Volatility	48.000		%	48.000		%
Risk Free Rate of Return	2.3		%	2.3		%



Value at Issue	$	284,868		$	128,086														$	412,954
Change in Value During the Quarter	$	(42,928	)	—															$	(42,928	)
Value at Quarter End	$	241,940		$	128,086														$	370,026

6/30/2010
Volatility	42.26		%	42.26		%	42.26		%	42.26		%	42.26		%
Risk Free Rate of Return	1.79		%	1.79		%	1.79		%	1.79		%	1.79		%

Value at Issue/Prior Quarter End	$	241,940		$	128,086		$	261,803		$	60,901		$	88,199					$	780,929
Change in Value During the Quarter	$	(58,660	)	$	(29,840	)	$	(20,796	)	$	(2,578	)	—						$	(111,874	)
Value at Quarter End	$	183,280		$	98,246		$	241,007		$	58,323		$	88,199					$	669,055

9/30/2010
Volatility	34.79		%	34.79		%	34.79		%	34.79		%	34.79		%	34.79		%
Risk Free Rate of Return	1.27		%	1.27		%	1.27		%	1.27		%	1.27		%	1.27		%

Value at Issue/Prior Quarter End	$	183,280		$	98,246		$	241,007		$	58,323		$	88,199		$	82,631		$	751,686
Change in Value During the Quarter	$	(82,378	)	$	(43,907	)	$	(87,004	)	$	(20,966	)	$	(31,577	)	$	(19,071	)	$	(284,903	)
Value at Quarter End	$	100,902		$	54,339		$	154,003		$	37,357		$	56,622		$	63,560		$	466,783

12/31/2010
Volatility	69.618		%	69.618		%	69.618		%	69.618		%	69.618		%	69.618		%
Risk Free Rate of Return	2.01		%	2.01		%	2.01		%	2.01		%	2.01		%	2.01		%

Change in Value	$	200,987		$	107,237		$	190,699		$	46,040		$	68,472		$	77,605		$	691,040
Value at Quarter End	$	301,889		$	161,576		$	344,702		$	83,397		$	125,094		$	141,165		$	1,157,823

3/31/2011
Volatility	72.148		%	72.148		%	72.148		%	72.148		%	72.148		%	72.148		%
Risk Free Rate of Return	2.24		%	2.24		%	2.24		%	2.24		%	2.24		%	2.24		%

Change in Value	$	(108,199	)	$	(57,508	)	$	(117,557	)	$	(28,279	)	$	(42,416	)	$	(47,338	)	$	(401,297	)
Value at Quarter End	$	193,690		$	104,068		$	227,145		$	55,118		$	82,678		$	93,827		$	756,526

6/30/2011



Volatility	82.902		%	82.902		%	82.902		%	82.902		%	82.902		%	82.902		%
Risk Free Rate of Return	0.81		%	0.81		%	0.81		%	0.81		%	0.81		%	0.81		%

Change in Value	$	59,469		$	31,755		$	59,873		$	14,459		$	23,142		$	26,025		$	214,723
Value at Quarter End	$	253,159		$	135,823		$	287,018		$	69,577		$	105,820		$	119,852		$	971,249

9/30/2011
Volatility	76.266		%	76.266		%	76.266		%	76.266		%	76.266		%	76.266		%
Risk Free Rate of Return	0.42		%	0.42		%	0.42		%	0.42		%	0.42		%	0.42		%

Change in Value	$	(39,820	)	$	(21,214	)	$	(38,454	)	$	(9,270	)	$	(15,360	)	$	(17,227	)	$	(141,345	)
Value at Quarter End	$	213,339		$	114,609		$	248,564		$	60,307		$	90,460		$	102,625		$	829,904

12/31/2011
Volatility	106.735		%	106.735		%	106.735		%	106.735		%	106.735		%	106.735		%
Risk Free Rate of Return	0.36		%	0.36		%	0.36		%	0.36		%	0.36		%	0.36		%

Change in Value	$	133,395		$	71,258		$	128,210		$	30,980		$	47,727		$	52,280		$	463,850
Value at Quarter End	$	346,734		$	185,867		$	376,774		$	91,287		$	138,187		$	154,905		$	1,293,754

3/31/2012
Volatility	113.393		%	113.393		%	113.393		%	113.393		%	113.393		%	113.393		%
Risk Free Rate of Return	0.51		%	0.51		%	0.51		%	0.51		%	0.51		%	0.51		%

Change in Value	$	48,329		$	26,145		$	50,069		$	12,241		$	18,361		$	20,848		$	175,993
Value at Quarter End	$	395,063		$	212,012		$	426,843		$	103,528		$	156,548		$	175,753		$	1,469,747

6/30/2012
Volatility	98.53		%	98.53		%	98.53		%	98.53		%	98.53		%	98.53		%
Risk Free Rate of Return	0.41		%	0.41		%	0.41		%	0.41		%	0.41		%	0.41		%

Change in Value	$	(161,017	)	$	(85,543	)	$	(158,492	)	$	(38,116	)	$	(57,260	)	$	(63,742	)	$	(564,170	)
Value at Quarter End	$	234,046		$	126,469		$	268,351		$	65,412		$	99,288		$	112,011		$	905,577

Liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2012 and December 31, 2011 were as follows:



	Level 1		Level 2		Level 3		Total
2012
Derivative liabilities	$	—	$	905,577	$	—	$	905,577
Total Liabilities at Fair Value	$	—	$	905,577	$	—	$	905,577

2011
Derivative liabilities	$	—	$	1,293,754	$	—	$	1,293,754
Total Liabilities at Fair Value	$	—	$	1,293,754	$	—	$	1,293,754

Note- No assets or other liabilities were measured at fair value during 2012 or 2011.

The following table summarizes the terms and values of the Company’s stock purchase warrants outstanding at June 30, 2012 and December 31, 2011:



Warrant Holder	Exercise Price		Warrants Outstanding	Weighted Average Remaining Life	Shares Exercisable	Black-Scholes Valuation
2012 Warrant Details
February 26, 2010	$	4.00	212,500	2.91	212,500	$	395,063
March 31, 2010	$	4.00	112,500	3.00	112,500	$	212,012
April 30, 2010	$	3.00	208,334	3.08	208,334	$	426,844
June 3, 2010	$	3.00	50,001	3.18	50,001	$	103,527
June 30, 2010	$	3.00	75,002	3.25	75,002	$	156,548
August 5, 2010	$	3.00	83,335	3.35	83,335	$	175,753
A Warrants	$	1.81	512,941	0.75	512,941	$	203,777
B Warrants	$	1.99	512,941	0.75	512,941	$	164,994
AA Warrants	$	1.81	453,795	0.75	453,795	$	180,280

June 30, 2012			2,221,349	1.50	2,221,349	$	2,018,798
Weighted average exercise price						$	2.40

2011 Warrant Details
February 26, 2010	$	4.00	212,500	3.17	212,500	$	346,734
March 31, 2010	$	4.00	112,500	3.25	112,500	$	185,867
April 30, 2010	$	3.00	208,334	3.33	208,334	$	376,774
June 3, 2010	$	3.00	50,001	3.42	50,001	$	91,286
June 30, 2010	$	3.00	75,002	3.50	75,002	$	138,188
August 5, 2010	$	3.00	83,335	3.58	83,335	$	154,905
A Warrants	$	1.81	512,941	1.00	512,941	$	203,777
B Warrants	$	1.99	512,941	1.00	512,941	$	164,994
AA Warrants	$	1.81	533,458	1.00	533,458	$	211,928

December 31, 2011			2,301,012	1.74	2,301,012	$	1,874,453
Weighted average exercise price						$	2.37