STOCK BASED COMPENSATION

6 Months Ended

Jun. 30, 2013

Stock Based Compensation

STOCK BASED COMPENSATION

NOTE 5. STOCK-BASED COMPENSATION

Stock-based compensation expense was $94,466 and $85,172 for the six months ended June 30, 2013 and 2012, respectively, for options previously awarded by the Company.

Stock option activity for the six months ended June 30, 2013 is summarized as follows:

	Shares			Weighted Average Exercise Price			Weighted Average Remaining Contractual Life (in Years)		Grant Date Fair Value
Outstanding at December 31, 2012		2,939,167		$	5.70			6.50	$	1,144,024
Options previously expired		196,667			1.02			-		34,152
Options forfeited		(70,000	)		(1.33	)		-		(35,554	)
Options exercised		(290,000	)		(.61	)		-		(101,538	)
Outstanding at June 30, 2013		2,775 ,834		$	6.01			6.05	$	1,041,084
Vested at June 30, 2013		2,165,834		$	7.16			5.52	$	633,977
Exercisable at June 30, 2013		2,165,834		$	7.16			5.52	$	633,977

A summary of the Company’s stock warrant activity and related information for the six months ended June 30, 2013 is as follows:

	Shares			Weighted Average Exercise Price			Weighted Average Remaining Contractual Life (in Years)		Grant Date Fair Value
Outstanding at December 31, 2012		1,163,308		$	12.37			0.40	$	128,889
Warrants exercised		(625,000	)		(1.65	)		-		(93,160	)
Warrants cancelled/forfeited/expired		(524,975	)		(25.38	)		-		(30,029	)
Warrants at June 30, 2013		13,333		$	2.27			2.16	$	5,700
Vested at June 30, 2013		7,083		$	2.72			2.07	$	2,900
Exercisable at June 30, 2013		7,083		$	2.72			2.07	$	2,900