STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2013

Summary Of Status Of Stock Option Awards

A summary of the status of the Company's stock option awards is presented below:

	Number of StockOptions		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life

Outstanding at January 1, 2013		1,173,180	$	4.04
Granted		--		--
Exercised		--		--
Expired		--		--
Cancelled		--		--
Forfeited		--		--
Outstanding at March 31, 2013		1,173,180	$	4.04		7.3
Exercisable at March 31, 2013		437,676	$	3.58		6.7

Black-Scholes Option Valuation Assumptions

On February 1, 2013, the Company issued a warrant for the purchase of 100,000 shares of common stock to Genesis Select Corporation ("Genesis") at a strike price of $10.00 per share. The term of the warrant is 5 years with 50% vesting in equal increments of 1/12th each calendar month throughout the first year. The remaining 50% will vest in equal increments of 1/36th each calendar month over years 2 through 4 contingent upon continuous investor relations service under the consulting agreement with Genesis. Investor relations expense recognized in connection with this warrant was approximately $30,000. The fair value of the warrants granted was calculated using the Black-Scholes valuation model with the following range of assumptions:

Expected volatility	59% to 60%
Expected dividends	None
Expected term (in years)	5
Risk free interest rate	.77% to .89%