| Stock option activity |
Stock
option activity for the period January 1, 2012 to June 30, 2012, was as follows:
| Options |
|
Shares |
|
|
Weighted-
Average
Exercise
Price |
|
|
Weighted-
Average
Remaining
Contractual
Term |
|
|
Aggregate
Intrinsic
Value |
|
| Outstanding
at January 1, 2012 |
|
|
24,067,892 |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
| Granted |
|
|
4,850,000 |
|
|
|
0.26 |
|
|
|
|
|
|
|
|
|
| Exercised |
|
|
(18,334 |
) |
|
|
0.27 |
|
|
|
|
|
|
|
|
|
| Forfeited or expired |
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
| Outstanding at June
30, 2012 |
|
|
28,899,558 |
|
|
$ |
0.30 |
|
|
|
8.3 |
|
|
$ |
4,397,250 |
|
| Vested and exercisable
at June 30, 2012 |
|
|
11,319,558 |
|
|
$ |
0.37 |
|
|
|
7.6 |
|
|
$ |
1,408,650 |
|
The
weighted average exercise prices, remaining contractual lives for options granted, exercisable, and expected to vest under the
Plan as of June 30, 2012 were as follows:
| |
|
|
|
Outstanding
Options |
|
|
Exercisable
Options |
|
Option
Exercise Price Per Share |
|
|
Shares |
|
|
Life
(Years) |
|
|
Weighted
Average
Exercise
Price |
|
|
Shares |
|
|
Weighted
Average
Exercise
Price |
|
| $ 0.21
- $ 0.99 |
|
|
|
28,572,012 |
|
|
|
8.4 |
|
|
$ |
.28 |
|
|
|
10,992,012 |
|
|
$ |
0.34 |
|
| $ 1.00
- $ 1.99 |
|
|
|
327,546 |
|
|
|
2.9 |
|
|
|
1.25 |
|
|
|
327,546 |
|
|
|
1.25 |
|
| |
|
|
|
|
28,899,558 |
|
|
|
8.3 |
|
|
$ |
0.30 |
|
|
|
11,319,558 |
|
|
$ |
0.37 |
|
During
the six months ended June 30, 2012, the Company amortized $683,423 of compensation cost based on the vesting of the options granted
in prior periods. Future unamortized compensation expense on the outstanding options at June 30, 2012 is $5,987,964.
|
| Black-Scholes-Merton pricing model with the following average assumptions |
During
the six months ended June 30, 2012 and 2011, the Company valued options at the grant date using the Black-Scholes-Merton pricing
model with the following average assumptions:
| |
|
June
30, |
|
| |
|
2012 |
|
|
2011 |
|
| |
|
|
|
|
|
|
| Expected
life (years) |
|
|
5.0 –
7.0 |
|
|
|
6.0 |
|
| Risk free interest
rate |
|
|
.75% - 1.27% |
|
|
|
1.95% |
|
| Volatility |
|
|
125 -132.00% |
|
|
|
135.00% |
|
| Expected dividend
yield |
|
|
0.00% |
|
|
|
0.00% |
|
|
| Stock purchase warrants |
The
following table summarizes certain information about the Company’s stock purchase warrants from January 1, 2012 to June 30,
2012:
| Warrants |
|
Shares |
|
|
Weighted-
Average
Exercise
Price |
|
|
Weighted-
Average
Remaining
Contractual
Term |
|
|
Aggregate
Intrinsic
Value |
|
| Outstanding at January 1,
2012 |
|
|
49,106,280 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
| Granted |
|
|
6,583,416 |
|
|
|
0.30 |
|
|
|
|
|
|
|
|
|
| Exercised |
|
|
(1,354,250 |
) |
|
|
0.35 |
|
|
|
|
|
|
|
|
|
| Forfeited or expired |
|
|
(2,644,550 |
) |
|
|
0.56 |
|
|
|
|
|
|
|
|
|
| Outstanding at June 30, 2012 |
|
|
51,690,896 |
|
|
$ |
0.30 |
|
|
|
1.5 |
|
|
$ |
6,455,175 |
|
| Vested and exercisable at June 30, 2012 |
|
|
49,978,396 |
|
|
$ |
0.30 |
|
|
|
1.3 |
|
|
$ |
6,249,675 |
|
| |
|
|
|
Outstanding
Warrants |
|
|
Exercisable
Warrants |
|
Warrant
Exercise Price Per Share |
|
|
Shares |
|
|
Life
(Years) |
|
|
Weighted
Average
Exercise
Price |
|
|
Shares |
|
|
Weighted
Average
Exercise
Price |
|
| $ 0.25
- $ 0.99 |
|
|
|
51,190,896 |
|
|
|
1.5 |
|
|
$ |
.29 |
|
|
|
49,478,396 |
|
|
$ |
.29 |
|
| $ 1.00
- $ 1.99 |
|
|
|
500,000 |
|
|
|
2.0 |
|
|
|
1.00 |
|
|
|
500,000 |
|
|
|
1.00 |
|
| |
|
|
|
|
51,690,896 |
|
|
|
1.5 |
|
|
$ |
0.30 |
|
|
|
49,978,396 |
|
|
$ |
0.30 |
|
|