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Stock Warrants
12 Months Ended
Dec. 31, 2012
Stock Warrants [Abstract]  
Stock Warrants

20. Stock Warrants

 

A summary of the warrant activity for the years ended December 31, 2012 is as follows:

 

    2012  
          Weighted        
          Average        
          Exercise     Intrinsic  
    Warrants     Price     Value  
Balance at January 1, 2012     2,333,500     $ 3.47          
Granted     -       -          
Exercised     -       -          
Expired     (187,500 )   $ 3.50          
Balance at December 31, 2012     2,146,000     $ 3.47     $ -  
Exercisable at December 31     2,146,000     $ 3.47     $ -  

 

A summary of outstanding warrant issuances at December 31, 2012 is as follows:

 

      Outstanding     Vested  
                  Weighted                 Weighted  
            Weighted     Average           Weighted     Average  
            Average     Remaining           Average     Remaining  
Price     Outstanding     Exercise     Contractual     Outstanding     Exercise     Contractual  
Range     Warrants     Price     Life in Years     Warrants     Price     Life in Years  
  $3.00 - $4.00       2,146,000     $ 3.47       0.86       2,146,000     $ 3.47       0.86  

 

The fair value of each grant was estimated at the date of the grant using the Black-Scholes-Merton option pricing model. Black-Scholes-Merton utilizes assumptions related to volatility, the risk free interest rate, the dividend, and employee exercise behavior. Expected volatilities utilized in the model are based mainly on the historical volatility of the Company's stock price and other factors. The risk free rate is based on the U.S. Treasury yield curve in affect at the date of grant.

 

The following assumptions were used in calculating the grant date fair value of warrants granted in 2010:

 

Weighted average volatility     101 %
Expected term (years)     1.99  
Risk free rate     0.37 %
Dividend yield     0.00 %
Weighted average grant date fair value   $ 0.47  

 

Stock warrant expense is recognized using the fair value when granted. During the year ended December 31, 2010, $392,014 was recognized as interest expense in the consolidation statements of operations.