STOCK PURCHASE WARRANTS

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

Note 12 - STOCK PURCHASE WARRANTS

Common Stock Warrants

All issuances of common stock warrants during the year ending December 31, 2010 were related to certain short-term convertible notes payable.

The following is a summary of all common stock warrant activity during December 31, 2010 through June 30, 2011:

	Number of Shares		Exercise Price Share		Weighted Average
	Under Warrants		Per Share		Exercise Price
Warrants issued and exercisable
at December 31, 2010		638,217	$	0.95 - $2.00	$	1.14
Warrants Granted		3,296,563	$	1.25 - $1.33	$	1.31
Warrants issued and exercisable
at June 30, 2011		3,934,780	$	0.95 - $2.00	$	1.29

The following represents additional information related to common stock warrants outstanding and exercisable at June 30, 2011:

Exercise		Number of Shares		Weighted Average Remaining		Weighted Average
Price		Under Warrants		Contract Life in Years		Exercise Price
$	0.95		86,250		0.37	$	0.95
$	1.00		426,417		0.17	$	1.00
$	1.25		673,076		0.20	$	1.25
$	1.33		2,670,287		2.21	$	1.33
$	2.00		78,750		0.07	$	2.00
			3,934,780		3.02	$	1.29

The Company used the Black-Scholes option price calculation to value the warrants granted in 2011 and 2010 using the following assumptions: risk-free rate of 2.43% volatility ranging from 75% to 152%; actual term and exercise price of warrants granted. See Note 1, Summary of Significant Accounting Policies, “Accounting for Share Based Payments.”