Warrants Liability (Tables)

6 Months Ended

Jun. 30, 2012

Warrants Liability [Abstract]

Assumption used to determine the fair value of warrants

We used a binomial pricing model to determine the fair value of our warrants as of June 30, 2012, the balance sheet date, using the following assumptions:

	Estimated Volatility	Annualized Forfeiture Rate	Expected Option Term (Years)	Estimated Exercise Factor	Risk-Free Interest Rate	Dividends
2011 Private Placement	198%	-	4.167	10	0.72%	-
ipCapital	196%	-	4.540	10	0.72%	-

Reconciliation of warrants liability measured at fair value using significant unobservable inputs

The following table is a reconciliation of the warrants liability measured at fair value using significant unobservable inputs (Level 3) for the six months ended June 30, 2012:

Warrants liability - December 31, 2011 fair value	$	3,696,600
Change in fair value of warrant liability recorded in other income		(607,900	)
Accretion of warrant liability recorded in general and administrative expense		14,500
Warrants liability - June 30, 2012 fair value	$	3,103,200