Note 10. Stock Warrants

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Note Disclosure [Text Block]

10.      Stock Warrants

Stock Warrants activity for the nine months ended September 30, 2012 and 2011 consisted of:

	2012					2011
	Warrants			Weighted  Average Exercise Price		Warrants			Weighted  Average Exercise Price
Beginning balance		1,235,877		$	0.35		1,498,377		$	0.36
Stock warrants granted		-			-		-			-
Stock warrants expired		-			-		-			-
Stock warrants exercised		(881,331	)		0.01		(262,500	)		0.41
Ending balance		354,546		$	1.21		1,235,877		$	0.35

In connection with the private placement of the Company’s Common Stock on December 8, 2010, the Company granted Common Stock Warrants to purchase 338,182 and 16,364, respectively, to each of its two placement agents for $1.21 per share which expire on December 8, 2015.

In connection with the Credit Agreement with the Lender as more fully described in Note 9, the Company issued a ten-year warrant to purchase 881,331 shares of the Company’s Common Stock for $.01 per share.  This warrant was exercised on September 28, 2012.

In connection with the private placement offering to certain investment funds affiliated with Signet Healthcare Partners, G.P. (the “Offering”) on March 13, 2009, the Company granted its placement agent for the Offering a Common Stock Warrant to purchase 350,000 shares of common stock for $0.41 per share, which expired on March 13, 2012.  On December 2, 2009, the Common Stock Warrant was amended to include a partial transfer for 87,500 shares of common stock.  On December 2, 2009, the warrant to purchase 87,500 was exercised using the “Cashless Exercise” provision and 51,681 shares of common stock were issued.  On February 25, 2011, the warrant to purchase the remaining 262,500 shares of common stock was exercised using the “Cashless Exercise” provision and 200,646 shares of common stock were issued.