STOCK OPTIONS (Tables)

3 Months Ended

Mar. 31, 2013

Stock Options Tables

Assumption used for stock option granted

The assumptions used principally for stock options granted to employees and members of the Company’s Board of Directors in the three months ended March 31, 2013 and 2012 were as follows:

	2013			2012
Risk-free interest rate		1.09% — 1.23	%		1.87% — 2.06	%
Expected dividend yield		—			—
Expected term	6.5 years			6.5 years
Forfeiture rate (excluding fully vested stock options)		15	%		15	%
Expected volatility		140% — 141	%		136% — 137	%

Stock option activity

A summary of stock option activity as of and for the three months ended March 31, 2013 is as follows:

Stock Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2013		3,433,333		$	1.47
Granted		115,000			0.82
Exercised		—			—
Forfeited or expired		(178,333	)		2.58
Outstanding at March 31, 2013		3,370,000		$	1.39	6.75 years	$	476,300
Exercisable at March 31, 2013		2,265,501		$	1.02	5.63 years	$	474,300