STOCK OPTIONS (Tables)

12 Months Ended

Dec. 31, 2012

Stock Options Tables

Remaining shares available for future grants

The tables below show the remaining shares available for future grants for each plan and the outstanding shares.

	Stock Option Plans
	2003			2008
Shares Available For Issuance:
Total reserved for stock options and restricted stock		1,600,000			10,000,000
Restricted stock issued net of cancellations		(311,250	)		(2,568,906	)
Stock options granted		(1,544,491	)		(2,545,000	)
Add back options cancelled before exercise		678,491			541,667
Options cancelled by plan vote		-			-
Remaining shares available for future grants		422,750			5,427,761
							Not Pursuant to a Plan
Total granted		1,544,491			2,545,000			3,100,000
Less: Options cancelled		(678,491	)		(541,667	)		(1,383,334	)
Options exercised		(356,000	)		(130,000	)		(666,666	)
Shares outstanding, before restricted stock		510,000			1,873,333			1,050,000
Restricted stock issued, net of cancellations		311,250			2,568,906			284,844
Outstanding shares at December 31, 2012		821,250			4,442,239			1,334,844

Assumption used for stock option granted

The assumptions used principally for options granted to employees in the years ended December 31, 2012 and 2011 were as follows:

	2012			2011
Risk-free interest rate		0.92% - 2.05	%		1.80% - 3.47	%
Expected dividend yield		—			—
Expected term	6.5 years			6.5 years
Forfeiture rate (excluding fully vested options)		15	%		15	%
Expected volatility		131% - 142	%		137% - 142	%

Summary of option activity

A summary of option activity under the Company’s stock plans and options granted to officers of the Company outside any plan as of December 31, 2012 and changes during the year then ended is presented below:

Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2012		3,395,103		$	1.68
Granted		700,000		$	1.66
Exercised		(237,666	)	$	0.94
Forfeited or expired		(424,105	)	$	3.76
Outstanding at December 31, 2012		3,433,332		$	1.47	6.11 years	$	885,300
Exercisable at December 31, 2012		2,241,332		$	1.06	5.48 years	$	885,300