12. STOCK OPTIONS AND WARRANTS (Tables)

12 Months Ended

Dec. 31, 2013

Stock Options And Warrants

Assumptions for options granted

We used the following assumptions for options granted in fiscal 2013 and 2012:

	2013	2012
Expected volatility	128.75 -134.02%	106.70%
Expected lives	5 -10 Years	3 -5.5 Years
Risk-free interest rate	0.02%	0.21%
Expected dividend yield	None	None

Option activity

Option activity for the years ended December 31, 2013 and 2012 under the 2008 and 2011 Plans is as follows:

	Number of Options			Weighted Average Exercise Price
Outstanding at December 31, 2011		22,755,291		$	0.31
Granted		600,000			0.24
Exercised		–			–
Forfeited		–			–
Expired		(305,429	)		0.33
Outstanding at December 31, 2012		23,049,862		$	0.31
Exercisable at December 31, 2012		13,887,006		$	0.29
Weighted average grant date fair value				$	0.17
Granted		1,000,000			0.19
Exercised		–			–
Forfeited		–			–
Expired		–			–
Outstanding at December 31, 2013		24,049,862		$	0.30
Exercisable at December 31, 2013		14,555,583		$	0.29
Weighted average grant date fair value				$	0.16

Stock options outstanding

The following table summarizes information about employee stock options outstanding at December 31, 2013:

Options Outstanding								Options Exercisable
Range of Exercise Price		Number Outstanding at December 31, 2013	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value		Number Exercisable at December 31, 2013	Weighted Average Exercise Price		Aggregate Intrinsic Value
$	0.165-1.31	24,049,862	6.85 Years	$	0.30	$	–	14,555,583	$	0.29	$	–
		24,049,862	6.85 Years	$	0.30	$	–	14,555,583	$	0.29	$	–

Assumptions for Warrants

2013

The assumptions used in the valuation of these warrants include:

Assumptions
Expected term	5 yrs
Expected Volatility	30.96%
Risk free rate	0.14%
Dividend Yield	0.00%

2012

  The assumptions used in the valuation of these warrants include:

Assumptions
Expected term	5 yrs
Expected Volatility	105.82%
Risk free rate	0.214%
Dividend Yield	0.00%

Warrant activity

Warrant activity for the years ended December 31, 2013 and 2012 are as follows:

	Number of Warrants			Weighted Average Exercise Price
Outstanding at December 31, 2011		10,537,003		$	0.46
Granted		278,966			0.28
Exercised		–			–
Forfeited		–			–
Expired		(3,009,814	)		0.50
Outstanding at December 31, 2012		7,806,155		$	0.44
Exercisable at December 31, 2012		7,806,155		$	0.44
Weighted average grant date fair value				$	0.15
Granted		7,095,734			0.43
Exercised		–			–
Forfeited		–			–
Expired		(5,050,349	)		0.52
Outstanding at December 31, 2013		9,851,540		$	0.23
Exercisable at December 31, 2013		9,851,540		$	0.23
Weighted average grant date fair value				$	0.20