OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Tables)

9 Months Ended

Sep. 30, 2012

OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK [Abstract]

Summary of the Status and Changes of the Warrants

No warrants were issued during the nine months ended September 30, 2012.  A summary of the status and changes of the warrants are as follows:

				Weighted Average
	Shares			Exercise Price
Outstanding at December 31, 2011		6,422,930		$	1.77
Issued		-			-
Exercised		(90,000	)		0.35
Outstanding at September 30, 2012		6,332,930		$	1.79
Exercisable at September 30, 2012		6,332,930		$	1.79

Summary of the Status of the Warrants Outstanding

A summary of the status of the warrants outstanding at September 30, 2012 is presented below:

		Warrants Outstanding and Exercisable
		Number		Weighted Average Remaining	Weighted Average
Exercise Price		Outstanding		Contractual Life	Exercise Price
$	0.75		139,340	3.08 years	$	0.75
$	0.78		213,402	3.42 years	$	0.78
$	0.80		124,481	3.33 years	$	0.80
$	1.00		340,000	2.08 – 3.08 years	$	1.00
$	1.15		461,340	8.58 years	$	1.15
$	2.00		5,054,367	3.92 – 4.25 years	$	2.00
			6,332,930		$	1.79

Significant Assumptions Relating to the Valuation Of Stock Options

The significant assumptions relating to the valuation of the Company's options for the nine months ended September 30, 2012 and 2011 were as follows:

	2012			2011
Dividend Yield		0	%		0	%
Expected Life	1 – 10 years			5 – 10 years
Expected Volatility		89.06% - 90.48	%		81 – 105	%
Risk Free Interest Rate		0.74% - 1.74	%		2.02% - 3.75	%

Summary of the Status and Changes of the Options Granted Under the Stock Option Plans

A summary of the status and changes of the options granted under stock option plans and other agreements for the period ended September 30, 2012 is as follows:

				Weighted Average
	Shares			Exercise Price
Outstanding at December 31, 2011		11,598,411		$	0.83
Issued		855,000		$	1.24 – 1.75
Exercised		(75,000	)	$	0.67
Outstanding at September 30, 2012		12,378,411		$	0.88
Exercisable at September 30, 2012		9,445,534		$	0.78

Summary of the Vesting Periods of Options

During the nine months ended September 30, 2012, the Company issued 855,000 options to purchase the Company's common stock with exercise prices ranging from $1.24 to $1.75 and a weighted average grant date fair value of $1.27.  The options that have been granted will vest as follows:

		Vesting Information
Shares		Frequency	Begin Date	End Date
	225,000	Monthly	March 1, 2012	February 1, 2013
	300,000	Monthly	May 1, 2012	May 1, 2015
	30,000	Monthly	May 1, 2012	May 1, 2013
	300,000	Once	December 31, 2013	December 31, 2013

Summary of the Status of the Options Outstanding

A summary of the status of the options outstanding at September 30, 2012 is presented below:

		Options Outstanding					Options Exercisable
					Weighted				Weighted
		Number		Weighted Average Remaining	Average		Number		Average
Exercise Price		Outstanding		Contractual Life	Exercise Price		Exercisable		Exercise Price
$	0.70		7,358,277	2.08-6.67 years	$	0.70		7,358,277	$	0.70
$	0.83		3,205,134	3.42 years	$	0.83		1,555,985	$	0.83
$	1.00		60,000	2.50 years	$	1.00		60,000	$	1.00
$	1.24		100,000	4.33 years	$	1.24		24,999	$	1.24
$	1.45		125,000	4.42 years	$	1.45		72,917	$	1.45
$	1.55		330,000	4.67 – 9.67 years	$	1.55		31,678	$	1.55
$	1.75		300,000	9.67 years	$	1.75		16,678	$	1.75
$	1.90		900,000	8.92 years	$	1.90		325,000	$	1.90
			12,378,411		$	0.88		9,445,534	$	0.78