Warrants and Options

3 Months Ended

Mar. 31, 2012

Warrants and Options [Abstract]

Warrants and Options [Text Block]

NOTE 7 - WARRANTS AND OPTIONS

The following tables summarize warrants issued during the year ended December 31, 2011 to private placement stockholders and consultants. For the quarter ended March 31, 2012, no warrants were issued and no expense was recognized.

Grant Date	Number of Warrants		Exercise Price Original/Repriced		Expiration Term in Years
February 25, 2011 (A)		4,766,666	$	0.60 /$0.10		3
May 31, 2011  (A)		1,409,999	$	0.60/$0.10		3
June 27, 2011  (A)		1,874,999	$	0.60/$0.10		3
June 27, 2011 (B)		100,000	$	1.00		2
July 12, 2011  (A)		83,333	$	0.60/$0.10		3
December 27, 2011  (B)		50,000	$	1.00		2
(A) Private placement warrants (these warrants are subject to down round full ratchet anti dilution provisions and based on the 2012 private placements at $0.10 per share, the exercise price has been adjusted to $0.10 until such later time as a lower down round offering takes place)
(B) Sponsorship agreement, including put option - see Note 10

Activity in warrants for each of the year ended December 31, 2011 and the three months  ended March 31, 2012 is summarized as follows:

	Shares Under Warrants		Weighted Average Exercise Price Original/Repriced
Balance at January 1, 2011		-
Warrants granted		8,284,997	$	0.61/$0.10
Warrants exercised		-
Warrants cancelled/expired		-
Balance at December 31, 2011		8,284,997	$	0.61/$0.10
Warrants granted		-
Warrants exercised		-
Warrants cancelled/expired		-
Balance at March 31, 2012		8,284,997	$	0.61/$0.10

The following table summarizes information about warrants outstanding and exercisable at March 31, 2012. As all warrants currently outstanding are fully and immediately vested at issuance, the information for both outstanding and exercisable are identical.

Warrants Outstanding and Exercisable
Range of Exercise Price		Warrants Outstanding and Exercisable		Weighted Average Remaining Contractual Life
$	0.60 (A)		8,134,997		2.30
$	1.00		150,000		1.66
(A) The exercise price decreased to $0.10 in 2012 upon the closing of the private placements

The following table summarizes the assumptions used to value the warrants using the Black-Scholes option pricing model:

	Grant Date	Number of Warrants		Stock Price on Measurement Date		Exercise Price		Expected Term		Expected Volatility			Dividend Yield			Risk Free Rate
(A)	02/25/11		4,766,666	$	0.500	$	0.60		3.00		285.20	%		0.00	%		1.48	%
(B)	Remeasurement			$	0.110	$	0.10		1.92		195.00	%		0.00	%		0.51	%
(A)	05/31/11		1,409,999	$	0.850	$	0.60		3.00		208.89	%		0.00	%		0.79	%
(B)	Remeasurement			$	0.110	$	0.10		2.17		195.00	%		0.00	%		0.51	%
(A)	06/27/11		1,874,999	$	0.670	$	0.60		3.00		295.31	%		0.00	%		0.64	%
(B)	Remeasurement			$	0.110	$	0.10		2.25		195.00	%		0.00	%		0.51	%
(A)	07/12/11		83,333	$	0.700	$	0.60		3.00		278.00	%		0.00	%		0.42	%
(B)	Remeasurement			$	0.110	$	0.10		2.33		195.00	%		0.00	%		0.51	%
(C)	06/27/11		100,000	$	0.670	$	1.00		2.00		213.59	%		0.00	%		0.41	%
(C)	12/23/11		50,000	$	0.090	$	1.00		2.00		209.00	%		0.00	%		0.28	%

(A) Private placement warrants

(B) Remeasurement required at end of each period because of the down round full ratchet anti dilution provision

(C) Sponsorship agreement, including put option - see Note 10

In July and August 2011, the Company issued an aggregate of 1,250,000 options to purchase restricted common stock to the following directors and medical advisory board members (see Note 10).

Grant Date	Number of Options		Exercise Price		Expiration Term in Years
Dr. Louis Aronne - director - July 14, 2011		250,000	$	0.64		10
Dr. Louis Aronne - medical advisory board - July 14, 2011		500,000	$	0.64		10
Dr. Robert Hariri  - director - July 26, 2011		250,000	$	0.69		10
Dr.Peter Diamandis - director -August 15, 2011		250,000	$	0.45		10

The following table summarizes the assumptions used to value the director/advisory board options using the Black-Scholes option pricing model:

Grant Date	Number of Options		Stock Price on Measurement Date		Exercise Price		Expected Term		Expected Volatility			Dividend Yield			Risk Free Rate
07/14/11		750,000	$	0.640	$	0.64		10.00		287.00	%		0.00	%		2.98	%
07/26/11		250,000	$	0.690	$	0.69		10.00		285.00	%		0.00	%		2.99	%
08/15/11		250,000	$	0.450	$	0.45		10.00		284.00	%		0.00	%		2.29	%

Activity in stock options for each of the year ended December 31, 2011 and quarter ended March 31, 2012 is summarized as follows:

	Shares Under Options		Weighted Average Exercise Price
Balance at January 1, 2011		-
Options granted		1,250,000	$	0.61
Options exercised		-
Options cancelled/expired		-
Balance at December 31, 2011		1,250,000	$	0.61
Options granted		-
Options exercised		-
Options cancelled/expired		-
Balance at March 31, 2012		1,250,000	$	0.61

At March 31, 2012, the weighted-average remaining term of the options was 9.32 years and the aggregate intrinsic value was nil because none of the options have a strike price below the quoted market price of the Company's shares. The aggregate unvested cost of the options at March 31, 2012 was $567,500.

The following table summarizes information about options outstanding and exercisable at March 31, 2012.

Options Outstanding						Options Exercisable
Range of Exercise Price		Options Outstanding		Weighted Average Remaining Contractual Life		Range of Exercise Price		Options Exercisable		Weighted Average Remaining Contractual Life
$	0.64		750,000		9.29	$	0.64		208,333		9.29
$	0.69		250,000		9.33	$	0.69		83,333		9.33
$	0.45		250,000		9.38	$	0.45		83,333		9.38