Stockholders' Equity

6 Months Ended

Jun. 30, 2011

Stockholders' Equity

6. Stockholders’ Equity

Preferred Stock

On January 1, 2011, the Company granted 3,597 shares of Series B convertible preferred stock valued at $33,992 to the Series B convertible preferred stock owners as payment in kind for dividends

Stock Options

On February 11, 2011, the Company granted three members of the Board of Directors options to purchase an aggregate of 60,000 shares of common stock with an exercise price of $4.10 for a total value of $133,110 under a previously approved option plan.  The options vest over a three year period and have a term of ten years.

On February 11, 2011, the Company granted employees options to purchase an aggregate of 145,000 shares of common stock with an exercise price of $4.10 for a total value of $321,683 under a previously approved option plan. The options vest over a three year period and have a term of ten years.

On February 11, 2011, the Company granted outside consultants options to purchase an aggregate of 100,000 shares of common stock with an exercise price of $4.10 for a total value of $221,850 under a previously approved option plan. The options vest over a three year period and have a term of ten years.

Details of the options outstanding under all plans are as follows:

	Shares			Weighted Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Options outstanding at January 1, 2011		1,996,300		$	2.14		6.92		-
Granted		305,000		$	4.10		—		-
Expired		—			—		—		-
Canceled		(109,167	)	$	2.23		—		-
Exercised		—			—		—		-
Options outstanding at June 30, 2011		2,192,133		$	2.41		6.75	$	5,672,059
Options exercisable at June 30, 2011		953,977		$	1.68		5.68	$	3,165,285

Range of Exercise	Number Outstanding		Weighted Average Remaining Years of Contractual Life		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$0.80 – 2.00		830,133		6.25	$	1.39		652,341	$	1.32
$2.00 – 4.10		1,362,000		7.05	$	3.04		301,636	$	2.46
$0.80 – $4.10		2,192,133		6.75	$	2.41		953,977	$	1.68

Warrants

On May 13, 2011, the holder of warrants to purchase a total of 18,750 shares of the Company’s common stock, at an exercise price of $1.60 per share, elected to exercise the warrants on a cashless basis under the terms of the warrants.  The holder received a total of 14,135 net shares from the exercise.

Details of outstanding warrants are as follows:

	Shares			Weighted Average Exercise Price ($)		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Warrants outstanding at January 1, 2011		1,915,340		$	2.53		4.62
Granted		-			-		-		-
Expired		-			-		-		-
Exercised		(18,750	)		-		-		-
Warrants outstanding and exercisable at June 30, 2011		1,896,590		$	2.54		4.10	$	4,668,180