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Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2012
Accounting Policies [Abstract]  
Summary of Weighted Average Assumptions To Value Stock Options Granted
Management used the following weighted average assumptions to value stock options granted during the nine months ended September 30, 2012 and 2011:

 

 

 

2012

 

 

2011

 

Expected life

 

5Years

 

 

  5Years

 

Risk-free interest rate

 

 

.70%

 

 

 

2.19%

 

Expected volatility

 

 

101%

 

 

 

115%

 

Expected dividend yield

 

 

0%

 

 

 

0%

Summary Stock Option Activity

Information with respect to stock option activity is as follows:

 

     Outstanding Options 
  Options
Available For
Grant
  Plan Options
Outstanding
  Weighted
Average
Exercise Price
Per Share
  Weighted-Average
Remaining
Contractual 
Term
(years)
  Aggregate
Intrinsic
Value
 
December 31, 2011  1,700,000   15,795,000  $0.20   8.01   - 
Options granted  (5,246,667)  5,246,667  $0.12   9.92   - 
Options exercised  -   -   -   -   - 
Options forfeited  -   -   -   -   - 
Options expired under 2001 EIP  -   -   -   -   - 
Additional options authorized  10,000,000   -   -   -   - 
Outstanding at September 30, 2012  6,453,333   21,041,667  $0.18   8.06   - 
Exercisable at September 30, 2012  -   9,329,063  $0.24   6.88   - 
Summary of Significant Accounting Policies

Inventories consisted of the following at September 30, 2012 and December 31, 2011:

 

  September 30,
2012
  December 31,
2011
 
Raw materials $169,712  $225,729 
Finished goods  106,582   142,109 
Totals $276,294  $367,838 
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block]

The following table sets forth the computation of basic and diluted earnings per share and the additional income related to the change in fair value of derivative securities for the three month period ending September30,2012:

 

 

 

 For the Nine Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 For the Three Months Ended September 30,

 

 

For the Three Months Ended September 30,

 

 

 

2012

 

 

2011

 

 

2012

 

 

2011

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) for basic earning per share

 

$

(9,545,389

)

 

$

(3,004,256

)

 

$

(865,480

)

 

$

(1,190,346

)

Subtractions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of derivative securities

 

 

-

 

 

 

-

 

 

 

(1,374,700

)

 

 

-

 

Net (loss) for diluted earnings per share

 

$

(9,545,389

)

 

$

(3,004,256

)

 

$

(2,240,180

)

 

$

(1,190,346

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average basic shares outstanding

 

 

111,078,252

 

 

 

108,033,806

 

 

 

117,152,589

 

 

 

108,041,084

 

Assumed conversion of dilutive securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants

 

 

-

 

 

 

-

 

 

 

11,383,610

 

 

 

-

 

Conversion feature - Convertible Debentures

 

 

-

 

 

 

-

 

 

 

41,021,402

 

 

 

-

 

Potentially dilutive common shares

 

 

-

 

 

 

-

 

 

 

52,405,012

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator for diluted earnings per share - Adjusted weighted average shares

 

 

111,078,252

 

 

 

108,033,806

 

 

 

184,838,302

 

 

 

108,041,084

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.09

)

 

$

(0.03

)

 

$

(0.01

)

 

$

(0.01

)

Diluted

 

$

(0.09

)

 

$

(0.03

)

 

$

(0.01

)

 

$

(0.01

)