STOCK-BASED COMPENSATION (TABLES)

6 Months Ended

Jun. 30, 2013

Stock-Based Compensation [Abstract]

Summary of Share Based Compensation of Fair Value Assumptions

The fair value of each option granted during the six months ended June 30, 2013 and 2012 was estimated using the following assumptions.

	Six months ended June 30, 2013	Six months ended June 30, 2012
Expected volatility	98% - 136%	85.41% - 111.36%
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	0.92% – 1.71%	1.02% – 1.98%
Expected life	5.5 – 10.0 years	5.5 – 10.0 years
Forfeiture rate	0% - 2%	0% - 2%

Summary of Company's Stock Option activity

The following summarizes the Company’s stock option activity for the six months ended June 30, 2013:

	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2012	2,079,000	$	1.03	6.77
Granted	1,693,500	$	0.45	9.82
Exercised	–		–
Canceled or expired	(225,500)	$	1.14
Outstanding at June 30, 2013	3,547,000	$	0.75	7.94	$	0
Exercisable at June 30, 2013	2,429,875	$	0.82	7.37	$	0
Vested and expected to vest at June 30, 2013	3,520,218	$	0.75	7.90	$	0