STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2012

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

NOTE    9 — STOCKHOLDERS' EQUITY:

(a)  Common Stock

During 2012, options to purchase 111,459 shares of the Company's common stock were exercised at exercise prices ranging from of $1.04 to $1.76.

In March 2012, June 2012, September 2012 and December 2012, the Company issued 938 shares of common stock on each date to a consultant as part of the consultant's compensation.

During 2011, options to purchase 76,927 shares of the Company's common stock were exercised at exercise prices ranging from of $1.04 to $1.76.

                                (b)   Preferred  Stock

The Company has 10,000,000 shares of preferred stock authorized and none outstanding.  These shares can become issuable upon an approved resolution by the board of directors and the filing of a Certificate of Designation with the state of Nevada.

                                (c)  Options

On February 16, 2012, the Company issued 25,392 options to purchase common stock to executives of the Company as part of their 2011 bonus.  The options are exercisable immediately at $4.00 per share, which was the last traded price of the common stock on that day, and they expire five years from date of issue.

In March 2012, the Company issued 3,750 options to purchase shares of the Company's common at an exercise price of $4.00 per share to a consultant as part of the consultant's compensation.  On each of March 19, 2012, June 19, 2012, September 19, 2012 and December 19, 2012, 938 of these options vested.  These options were valued using a Black-Scholes model at $8,010, all of which was expensed in the year ended December 31, 2012.  The options are being accounted for under the variable method as per ASC 505 and $50 of the expense was reduced attributable to this method.

During the third quarter of 2012, the Company issued 72,000 options to purchase common stock to newly-hired vice-presidents of the Company.  The options are exercisable in three equal annual installments on the anniversary of the issuance starting one year from date of issue.  An allotment of 36,000 options issued to one of the new vice presidents have an exercise price of  $5.11 per share, and the 36,000 options that were issued to the other new vice president have an exercise price of $4.45 per share, which in each case was  the last traded price of the common stock on the day issued.  The options expire five years from date of issue.

(d)  Warrants

As of December 31, 2012, the Company had no warrants outstanding to purchase shares of common stock.

On April 26, 2011, warrants to purchase 513,698 shares of common stock were exercised at $.40 per share.  The Company received $205,479 for this exercise.

As of December 31, 2011, the Company had warrants outstanding to purchase 33,381 shares of common stock at a price of $.81.  On February 5, 2012 these warrants to purchase shares of common stock expired.