WARRANTS (Tables)

12 Months Ended

Dec. 31, 2012

Warrants Tables

Warrants assumptions utilized by the Company

The following assumptions were utilized by the Company:

	2012			2011
Risk-free interest rate		0.70% - 2.23	%		3.36% - 3.75	%
Expected dividend yield		—			—
Expected term (contractual term)	0.06 - 5 years			2 years
Forfeiture rate		—			—
Expected volatility		123% - 144	%		142	%

Outstanding Warrants

At December 31, 2012, the Company had the following outstanding warrants:

	Number of
	Shares		Exercise		Date of
	Exercisable		Price		Expiration
Outstanding warrants accounted for in derivative warrant liability:
Granted to financial investment advisor		7,500	$	1.26	2/11/2013
Granted to investors in private placement		154,990	$	0.50	2/11/2013
Granted to investors in private placement		197,663	$	1.44	3/24/2013
Granted to debtor as a Commitment warrant		4,000,000	$	2.00	8/31/2017
Granted to debtor as a Draw warrant		1,000,000	$	2.13	9/20/2017
Granted to debtor as a Draw warrant		500,000	$	2.27	10/17/2017
Granted to debtor as a Draw warrant		1,500,000	$	2.11	11/6/2017
Total outstanding warrants accounted for as derivative warrant liability		7,360,153
Weighted average exercise price			$	2.01
Weighted average time to expiration in years					4.50 years
Outstanding warrants accounted for in equity:
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		390,000	$	0.75	2/28/2014
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		768,000	$	2.00	11/13/2014
Granted to placement agent in private placement		256,906	$	1.50	11/13/2014
Granted to investors in private placement		63,000	$	2.00	12/3/2014
Granted to investors in private placement		341,325	$	2.25	2/9/2015
Granted to placement agents in private placement		28,500	$	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		245,750	$	1.50	1/4/2013
Granted to investors in private placement		245,750	$	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		250,000	$	1.50	2/8/2013
Granted to investors in private placement		250,000	$	2.50	2/8/2013
Granted to investors in private placement		959,582	$	3.00	12/7/2014
Total outstanding warrants accounted for as equity		5,179,887
Weighted average exercise price			$	2.00
Weighted average time to expiration in years					1.18 years
Totals for all warrants outstanding:
Total		12,540,040
Weighted average exercise price			$	2.01
Weighted average time to expiration in years					3.13 years

Summary of warrant activity

A summary of warrant activity in the year ended December 31, 2012 is as follows:

Warrants	Shares			Weighted- Average Exercise Price
Outstanding at January 1, 2012		7,527,529		$	1.92
Granted		7,020,339		$	1.44
Exercised		(165,451	)	$	1.28
Forfeited or expired		(1,842,377	)	$	1.90
Outstanding at December 31, 2012		12,540,040		$	2.01