Quarterly report pursuant to sections 13 or 15(d)

1. Basis of Presentation, Consolidation, and Summary of Selected Significant Accounting Policies (Tables)

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1. Basis of Presentation, Consolidation, and Summary of Selected Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2012
Notes to Financial Statements  
Following securities were excluded in the calculation of diluted loss per share

The following securities were excluded in the calculation of diluted loss per share as of June 30, 2012 and 2011 because their inclusion would be antidilutive:

 

    2012     2011  
                 
Warrants     51,372,711       43,668,191  
Stock options     6,548,261       5,286,174  
Convertible preferred stock     7,206,168       6,834,314  
      65,127,140       55,788,679  

 

The following table summarizes the stock option activity

The following table summarizes the stock option activity for the six months ended June 30, 2012:

 

Activity  

(unaudited)

Number of Options

   

Weighted Average Exercise

Price

 
                 
Outstanding at December 31, 2011     6,634,261     $ 0.75  
Granted     49,500     $ 0.10  
Cancelled or expired     (135,500 )   $ 0.16  
Outstanding at June 30, 2012     6,548,261     $ 0.75  
Exercisable at June 30, 2012     4,533,430     $ 1.04  

 

 

 

Calculated the fair value of each common stock option grant on the date of grant using the Black-Scholes option-pricing model

The Company calculated the fair value of each common stock option grant on the date of grant using the Black-Scholes option-pricing model method with the following assumptions:

 

    (unaudited)  
    Six Months Ended June 30,  
    2012     2011  
                 
Dividend yield     0.00 %     0.00 %
Stock volatility     111.2-148.7 %     138.1-179.7 %
Average Risk-free interest rate     0.28 %     1.93-2.46 %
Average option term (years)     4       4