Equity Compensation And Employee Benefit Plans

12 Months Ended

Dec. 31, 2011

Equity Compensation And Employee Benefit Plans [Abstract]

Equity Compensation And Employee Benefit Plans

NOTE 12 – EQUITY COMPENSATION AND EMPLOYEE BENEFIT PLANS

Stock Options

     The Company has five Equity Compensation Plans: The 2008 Equity Compensation Plan (the "2008 Plan"), the 2007 Consultant Stock Plan (the "2007 Plan"), the 2006 Incentive Stock Plan (the "2006 Plan"), the 2004 Consultant Stock Plan, and the 2002 Incentive Stock Plan (the "2002 Plan"). These plans provide for the grant of incentive stock options and non-statutory options to employees, directors and consultants to the Company. The 2004 Consultant Stock Plan covers 1 million shares, none of which have been granted. The Company granted incentive stock options and non-statutory options at exercise price per share equal to the fair market value per of the common stock on the date of grant. The vesting term is generally, three years, and exercise provisions were determined by the Board of Directors, with a maximum life from five to ten years.

     Option activity under the 2008 Plan, 2007 Plan, 2006 Plan and 2002 Plan are as follows (in thousands):

	2008 Plan				2007 Plan				2006 Plan				2002 Plan
			Weighted				Weighted				Weighted				Weighted
	Number		Average		Number		Average		Number		Average		Number		Average
	of		Exercise		of		Exercise		of		Exercise		of		Exercise
	Shares		Price		Shares		Price		Shares		Price		Shares		Price
Outstanding at
January 1, 2010	18,974		$	0.37	1,400		$	0.37	2,282		$	0.86	2,796		$	1.08
Plan transfers and
adjustments	40			—	(1,000	)		0.40	1,074			0.40	1			—
Granted	1,260		$	0.34	1,100			0.48	—			—	—			—
Exercised	(140	)	$	0.25	—			—	—			—	—			—
Forfeited	(840	)	$	0.27	—			—	—			—	—			—
Outstanding at
December 31, 2010	19,294		$	0.37	1,500		$	0.51	3,290		$	0.72	2,694		$	0.92
Granted	6,985			0.47	-__			-	-			-	-
Exercised	(1,801	)		0.27	(116	)		0.41	(3	)		0.94	(100	)		0.25
Forfeited	(790	)		0.33	-			-	(1,295	)		0.44	(80	)		1.16
Outstanding at
December 31, 2011	23,688		$	0.41	1,384		$	0.51	1,992		$	0.90	2,514		$	1.04

     The weighted average fair value of options granted during the years ended December 31, 2011 and 2010 was $0.47 and $0.41.

     The fair value of each option and warrant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	2011		2010
Dividends	None		None
Expected	104.6	to	107.5	% to
volatility	105.4		122.6	%
Risk free	1.14	% to	1.20% to 2.98%
interest rate	2.01	%
Expected life	5.0 to 6.06 years		5.0 – 5.75 years

     The following table provides information about options under the 2008 Plan, 2007 Plan, 2006 Plan and 2002 Plan that are outstanding and exercisable at December 31, 2011. (In thousands):

Plan		Exercise Price	Options	Options
		Range	Outstanding	exercisable at
				December 31,
				2011
2008	$	0.25 - $1.10	23,688	15,072
2007	$	0.25 - $1.15	1,384	394
2006	$	0.40 - $1.00	1,992	1,992
2002	$	0.25 - $1.32	2,514	2,514
			29,578	19,972

     At December 31, 2011, the Company has outstanding stock options for employees to purchase 29.6 million shares at exercise prices ranging from $0.25 to $1.32.

401K Retirement Savings Plan

     The Company has an Employees' Retirement Savings Plan ("the 401K Plan"). Employees are eligible to participate in the 401(K) Plan if they have been continuously employed for three months or more. The Company matches each employee's 401(K) elective deferrals in common stock. At December 31, 2011, the Company matched $68,410 of the employee's elective deferrals in common stock.