Stock Options (Tables)

9 Months Ended

Sep. 30, 2013

Stock Options Tables

Stock options outstanding and exercisable

The following table summarizes information about stock options outstanding and exercisable at September 30, 2013:

	Number of Share Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term in Years		Aggregate Intrinsic Value(1)
Outstanding at December 31, 2012		810,000	$	0.64		4.06	$	—
Granted		4,400,000	$	0.02		2.91	$	—
Exercised		—	$	—		—	$	—
Forfeited or Cancelled		—	$	—		—	$	—
Outstanding at September 30, 2013		5,210,000	$	0.12		2.97	$	—
Exercisable at September 30, 2013		650,000	$	0.78		3.54	$	—
Vested and expected to vest (2)		5,210,000	$	0.12		2.97	$	—

(1)	Aggregate intrinsic value represents the value of the closing price per share of our common stock on the last trading day of the fiscal period in excess of the exercise price multiplied by the number of options outstanding or exercisable, except for the “Exercised” line, which uses the closing price on the date exercised.
(2)	Number of shares includes options vested and those expected to vest net of estimated forfeitures.

Unvested share activity

	Unvested Number of Options			Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2012		236,000		$	0.04
Granted		4,400,000		$	0.02
Vested		(76,000	)	$	0.11
Forfeited		—		$	—
Unvested balance at September 30, 2013		4,560,000		$	0.02

Fair Value of Stock options

	For the nine months ended
	September 30, 2013			September 30, 2012
Expected life (in years)		2			6.5
Average risk-free interest rate		1.66	%		1.66	%
Expected volatility		111	%		108	%
Expected dividend yield		0	%		0	%
Forfeiture rate		3	%		3	%