SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis for the period presented and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value.

September 30, 2012	Fair Value		Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
Cash and cash equivalents	$	3,823,860	$	3,823,860		-		-
Certificates of Deposit		5,190,000		5,190,000		-		-

Stock-Based Compensation Expense

Stock-based compensation expense recognized under ASC 718 was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Research and development	$	13,200	$	22,138	$	158,017	$	74,711
General and administrative		13,200		104,093		44,068		316,427
Total stock-based compensation expense	$	26,400	$	126,231	$	202,085	$	391,138

Summary of Stock Option Activity

A summary of our stock option activity during the nine months ended September 30, 2012 is presented below:

	Total Number		Weighted-Average
Options	of Shares		Exercise Price
Outstanding as of December 31, 2011		1,261,425	$	8.27
Granted		15,000		15.75
Forfeited		-		-
Exercised		94,425		1.57
Expired		-		-
Outstanding as of September 30, 2012		1,182,000	$	8.90
Exercisable as of September 30, 2012		1,102,000	$	7.90