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STOCK PURCHASE WARRANTS
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Note 11 - 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 December 31, 2011:

 

    Number of Shares     Exercise Price Share     Weighted Average  
    Under Warrants     Per Share     Exercise Price  
                   
Warrants issued and exercisable                  
     at December 31, 2009             591,417            $0.95 - $2.00     $     0.98  

          

 

Warrants Granted

                46,800                  $1.33     $             1.33  

 

Warrants issued and exercisable

                  
     at December 31, 2010           638,217       $0.95- $2.00     $ 1.11  
                         
          Warrants Granted          4,238,764       $0.83 - $1.33     $ 1.23  
          Warrants Expired                     (41,250)                  $2.00     $             2.00  
                         
Warrants issued and exercisable                        
     at December 31, 2011           4,843,531       $0.95 - $2.00     $ 1.21  

 

The following represents additional information related to common stock warrants outstanding and exercisable at December 31, 2010:

 

Exercise   Number of Shares   Weighted Average Remaining    Weighted Average
Price   Under Warrants   Contract Life in Years   Exercise Price
$    0.95    86,250   2.19   $     0.95
$    1.00   426,417   8.13   $     1.00
$    1.33    46,800   4.64   $     1.33
$    2.00    78,750   1.04   $     2.00
    638,217   6.19   $     1.11

 

The following represents additional information related to common stock warrants outstanding and exercisable at December 31, 2011:

 

Exercise     Number of Shares     Weighted Average Remaining     Weighted Average  
Price     Under Warrants     Contract Life in Years     Exercise Price  
$ 0.83       861,028       0.33     $ 0.83  
$ 0.95        86,250       0.23     $ 0.95  
$ 1.00       426,417       0.13     $ 1.00  
$ 1.33         3,432,336       2.19     $ 1.33  
$ 2.00        37,500       0.02     $ 2.00  
          4,843,531       3.21     $ 1.21  

 

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 3.90% and 2.43%, respectively, volatility ranging from 70% to 117%, to a range of 75% to 152%, respectively; actual term and exercise price of warrants granted. See Note 1, Summary of Significant Accounting Policies, “Accounting for Share Based Payments.”