Stockholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders Equity

Stockholders' Equity

Common stock

The Company estimates the fair value of employee stock options and warrants granted using the Black-Scholes Option Pricing Model. Key assumptions used to estimate the fair value of warrants and stock options include the exercise price of the award, the fair value of the Company’s common stock on the date of grant, the expected warrant or option term, the risk free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on the Company’s common stock. 

During the year ended December 31, 2012, the Company granted 2,044,591 warrants for board services and consulting services. The Company has valued the warrants for services using the Black Scholes Option Pricing Model, at $496,979. The warrants issued for board services were 120,000 valued at $73,800, warrants issued for third party services were 1,904,291 with a fair value at $423,179, and warrants exercised for cash were 20,602 valued at $5,075. 3,150 warrants were cancelled during 2012.

During the year ended December 31, 2011, the Company granted 114,000 warrants for board services and 152,400 warrants for consulting services valued with the Black Scholes pricing model at $312,000.