(11)

WARRANTS

At June 30, 2011, the Company had the following outstanding warrants:

	Number of Shares Exercisable		Exercise Price		Date of Expiration
Granted to investors and placement agent in private placement		341,535	$	1.28	6/15-7/16/2012
Granted to investors and placement agent in private placement		180,000	$	0.75	6/15/2012
Granted to financial investment advisor		6,000	$	1.38	7/25/2012
Granted to financial advisor in connection with an acquisition		80,750	$	1.75	9/14/2012
Granted to financial investment advisor		15,000	$	1.30	2/11/2013
Granted to investors in private placement		733,412	$	0.50	2/11/2013
Granted to investors in private placement		177,324	$	1.50	3/24/2013
Granted to investors in private placement of preferred stock		121,663	$	0.75	9/30/2013
Granted to investors in private placement of preferred stock		32,249	$	1.00	9/30/2013
Granted to investors in private placement of preferred stock		198,333	$	1.50	10/28/2013
Granted to investors in private placement of preferred stock		70,000	$	0.75	10/31/2013
Granted to investors in private placement of preferred stock		640,000	$	0.75	2/28/2014
Granted to vendor		50,000	$	0.70	3/2/2012
Granted to vendor		60,000	$	0.60	3/15/2014
Granted to investors in private placement		400,000	$	1.59	6/30/2014
Granted to investors in private placement		1,368,000	$	2.00	11/13/2014
Granted to investors in private placement		800,000	$	1.60	11/13/2014
Granted to placement agent in private placement		256,906	$	1.50	11/13/2014
Granted to vendor		50,000	$	2.00	12/1/2012
Granted to investors in private placement		63,000	$	2.00	12/3/2014
Granted to placement agent in private placement		45,000	$	1.38	12/3/2014
Granted to investors in private placement		374,658	$	2.25	2/9/2015
Granted to placement agents in private placement		128,899	$	2.25	2/9/2015
Granted to investor in private placement		6,375	$	2.25	3/18/2015
Granted to financial investment advisor		100,000	$	1.50	2/10/2013
Granted to financial investment advisor		10,367	$	2.00	3/3/2013
Granted to investors in private placement		187,500	$	1.50	11/5/2012
Granted to investors in private placement		187,500	$	2.50	11/5/2012
Granted to placement agent in private placement		5,000	$	1.50	11/5/2012
Granted to placement agent in private placement		5,000	$	2.50	11/5/2012
Granted to investors in private placement		35,000	$	1.50	11/26/2012
Granted to investors in private placement		35,000	$	2.50	11/26/2012
Granted for waiver of Series B Perpetual Redeemable Preferred Stock redemption		125,000	$	1.50	12/8/2012
Granted for waiver of Series B Perpetual Redeemable Preferred Stock redemption		125,000	$	2.50	12/8/2012
Granted to investors in private placement		607,500	$	1.50	12/29/2012
Granted to investors in private placement		625,000	$	2.50	12/29/2012
Granted to placement agent in private placement		30,000	$	1.50	12/29/2012
Granted to placement agent in private placement		30,000	$	2.50	12/29/2012
Granted to investors in private placement		308,250	$	1.50	1/4/2013
Granted to investors in private placement		308,250	$	2.50	1/4/2013
Granted to placement agent in private placement		18,125	$	1.50	1/4/2013
Granted to placement agent in private placement		18,125	$	2.50	1/4/2013
Granted to investors in private placement		255,000	$	1.50	2/3/2013
Granted to investors in private placement		280,000	$	2.50	2/3/2013
Granted to placement agent in private placement		1,250	$	1.50	2/3/2013
Granted to placement agent in private placement		1,250	$	2.50	2/3/2013
Granted to investors in private placement		1,753,000	$	1.50	2/8/2013
Granted to investors in private placement		1,753,000	$	2.50	2/8/2013
Total		13,003,221
Weighted average exercise price			$	1.73
Weighted average time to expiration in years					1.52 years

Exercise of Common Stock Warrants

During the six months ended June 30, 2011, the Company issued 684,381 shares of Common Stock upon the exercise of warrants to purchase 1,289,446 shares of Common Stock through cashless exercise provisions, and 310,048 shares of Common Stock upon the exercise of warrants for cash, providing gross proceeds to the Company of $577,029. During the six months ended June 30, 2010, investors effected cashless exercises of warrants to purchase 143,793 shares which resulted in the issuance of 35,714 shares to the investors.

During the quarter ended June 30, 2011, the Company contacted certain holders of the Series-1 and Series-2 Warrants to encourage them to exercise their warrants voluntarily by reducing the exercise price on the Series-2 Warrants from $2.50 to $2.00 per share, provided they elected to simultaneously exercise an equal number of Series-1 and Series-2 Warrants on or before July 1, 2011. Warrants to purchase an aggregate of 225,000 shares of Common Stock across the Series 1 and Series 2 warrants were exercised under this arrangement on or before June 30, 2011. Cash proceeds of $393,750 from these transactions were reflected in Restricted Cash on the Consolidated Balance Sheet as of June 30, 2011 due to customary closing requirements contemplated in the offer that were not fully satisfied until July 1, 2011.