5. STOCK OPTION PLAN AND STOCK-BASED COMPENSATION (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Stock Option Plan And Stock-Based Compensation Tables

Assumptions for fair value of stock options

	2013			2012
Risk-free interest rate		0.47% - 1.55	%		0.31% - 1.27	%
Expected dividend yield		0	%		0	%
Volatility factor		85	%		90	%
Expected life of option	3.25 to 6 years			2.90 to 7 years

Activity under Stock Plans

	Shares			Exercise Price per Share		Weighted Average Exercise Price per Share
Outstanding as of December 31, 2012		7,708,400		$	0.10-1.85	$	0.42
Granted		708,000			0.42-1.00		0.68
Exercised		-			-		-
Options forfeited/cancelled		(2,530,000	)		0.50-1.00		0.51
Outstanding as of September 30, 2013		5,886,400		$	0.10-1.85	$	0.42

The following table summarizes the activity under the Stock Plans.

	Shares			Price per Share		Weighted Average Exercise Price
Outstanding, December 31, 2010		78,400		$	1.85	$	1.85
Granted		1,921,237		0.10 to 0.25			0.13
Exercised		-			-		-
Options forfeited/cancelled		(421,237	)		-		0.25
Outstanding, December 31, 2011		1,578,400		0.10 to 1.85			0.19
Granted		6,130,000		0.10 to 0.50			0.48
Exercised		-			-		-
Options forfeited/cancelled		-			-		-
Outstanding, December 31, 2012		7,708,400		$	0.10 to 1.85	$	0.42

Information about stock options vested or expected to vest

Vested or Expected to Vest										Exercisable Options
				Weighted		Weighted						Weighted		Weighted
				Average		Average						Average		Average
				Exercise		Remaining		Aggregate		Number		Exercise		Remaining		Aggregate
Exercise		Number of		Price Per		Contractual		Intrinsic		of		Price		Contractual		Intrinsic
Price		Options		Share		Life (Years)		Value		Options		Per Share		Life (Years)		Value
$	0.10		1,800,000	$	0.10		3.13	$	1,026,000		1,612,500	$	0.10		3.15	$	919,125
	0.42		98,000		0.42		7.26		24,500		-		0.42		-		-
	0.50		3,330,000		0.50		2.09		566,100		2,371,668		0.50		2.34		403,184
	0.57		400,000		0.57		4.87		40,000		83,280		0.57		4.87		8,328
	1.00		180,000		1.00		2.32		-		135,000		1.00		1.63		-
	1.85		78,400		1.85		2.00		-		78,400		1.85		2.00		-
$	0.10-1.85		5,886,400	$	0.41		2.69	$	1,656,600		4,280,848	$	0.39		2.67	$	1,330,637

The following table summarizes information about stock options that are vested or expected to vest at December 31, 2012:

	Vested  or  Expected  to Vest									Exercisable  Options
				Weighted	Weighted					Weighted	Weighted
				Average	Average					Average	Average
				Exercise	Remaining		Aggregate			Exercise	Remaining		Aggregate
	Exercise	Number of		Price Per	Contractual		Intrinsic	Number of		Price	Contractual		Intrinsic
	Price	Options		Share	Life (Years)		Value	Options		Per Share	Life (Years)		Value
$	0.10	1,800,000	$	0.10	3.87	$	576,000	1,306,250	$	0.10	3.93	$	418,000
	1.85	78,400		1.85	2.75		-	78,400		1.85	2.75		-
	0.50	5,830,000		0.50	5.13		-	934,167		0.50	5.95		-
$	0.10-1.85	7,708,400	$	0.42	4.81	$	576,000	2,318,817	$	0.32	4.71	$	418,000