STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2013

Stock Based Compensation

STOCK BASED COMPENSATION

NOTE 5. STOCK-BASED COMPENSATION

Stock-based compensation expense was $48,054 and $44,441 for the three months ended March 31, 2013 and 2012, respectively, for options previously awarded by the Company.

Stock option activity for the three months ended March 31, 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 exercised		(35,000	)		(1.13	)		-		(23,149	)
Outstanding at March 31, 2013		2,904,167		$	5.76			6.25	$	1,120,875
Vested at March 31, 2013		2,255,417		$	6.87			5.71	$	692,822
Exercisable at March 31, 2013		2,255,417		$	6.87			5.71	$	692,822

A summary of the Company’s stock warrant activity and related information for the three months ended March 31, 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		(175,000	)		(1.46	)		-		(25,075	)
Warrants cancelled/forfeited/expired		(40,554	)		(0.10	)		-		(2,433	)
Warrants at March 31, 2013		947,754		$	14.91			0.66	$	101,381
Vested at March 31, 2013		935,254		$	15.08			0.63	$	95,781
Exercisable at March 31, 2013		935,254		$	15.08			0.63	$	95,781