OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Tables)

3 Months Ended

Mar. 31, 2013

OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK [Abstract]

Summary of the Status of the Warrants Outstanding

No warrants were issued during the three months ended March 31, 2013. A summary of the status of the warrants outstanding and exercisable at March 31, 2013 is presented below:

	Warrants Outstanding and Exercisable
Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$ 0.75	139,340	2.54 years	$ 0.75
$ 0.78	213,402	2.88 years	$ 0.78
$ 0.80	124,481	2.79 years	$ 0.80
$ 1.00	212,000	2.38 years	$ 1.00
$ 1.15	461,340	8.11 years	$ 1.15
$ 1.97	5,000,000	3.72 years	$1.97
$ 2.00	54,367	3.38 years	$ 2.00
	6,204,930

Significant Assumptions Relating to the Valuation of Stock Options

The significant assumptions relating to the valuation of the Company's options issued for the three months ended March 31, 2013 and 2012 were as follows:

	2013	2012
Dividend Yield	0%	0%
Expected Life	5 - 10 years	5 years
Expected Volatility	83%	89%
Risk Free Interest Rate	0.88%-1.66%	0.72%-1.06%

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

A summary of the status and changes of the options granted under stock option plans and other agreements for the period ended March 31, 2013 is as follows:

		Weighted
		Average
		Exercise
	Shares	Price
Outstanding at December 31, 2012	15,455,470	$ 1.04
Issued	45,867	1.58
Exercised	--	--
Outstanding at March 31, 2013	15,501,337	$1.04

Summary of the Status of the Options Outstanding

During the three months ended March 31, 2013, the Company issued 45,867 options to purchase the Company's common stock with an exercise price of $1.58 and grant date fair value of $50,000.  The granted options vest over a twelve-month period of time pursuant to the employee's employment agreement.  A summary of the status of the options outstanding at March 31, 2013 is presented below:

	Options Outstanding			Options Exercisable
		Weighted	Weighted		Weighted
		Average	Average		Average
Exercise	Number	Remaining	Exercise	Number	Exercise
Price	Outstanding	Contractual Life	Price	Exercisable	Price
$ 0.70	7,358,277	5.76 years	$ 0.70	7,358,277	$ 0.70
$ 0.83	3,205,134	7.48 years	$ 0.83	3,205,134	$ 0.83
$ 1.00	60,000	1.94 years	$ 1.00	60,000	$ 1.00
$ 1.24	100,000	3.90 years	$ 1.24	100,000	$ 1.24
$ 1.45	125,000	4.91 years	$ 1.45	125,000	$ 1.45
$1.55	330,000	8.14 years	$1.55	116,667	$1.55
$1.58	45,867	4.91 years	$1.58	7,644	$1.58
$1.66	3,077,059	9.78 years	$1.66	823,569	$1.66
$ 1.75	300,000	9.24 years	$ 1.75	165,000	$ 1.75
$ 1.90	900,000	8.46 years	$ 1.90	475,000	$ 1.90
	15,501,337		$ 1.04	12,436,291	$ 0.88