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)
9 Months Ended
Sep. 30, 2013
Notes to Financial Statements  
Following securities were excluded in the calculation of diluted loss per share

For the three and nine months ending September 30, 2013 and 2012, the following securities were excluded in the calculation of diluted loss per share because their inclusion would be antidilutive:

 

    2013     2012  
Warrants     114,495,924       51,372,711  
Stock options     17,662,583       6,418,261  
Convertible preferred stock     7,669,838       7,299,510  
      139,828,345       65,090,482  
The following table summarizes the stock option activity

The following table summarizes the stock option activity for the nine months ended September 30, 2013:

 

Activity  

(unaudited)

Number of Options

   

Weighted Average Exercise

Price

 
Outstanding at December 31, 2012     8,864,261     $ 0.58  
Granted     9,043,610     $ 0.08  
Forfeitures in 2013     (152,625 )   $ 0.11  
Expirations in 2013     (92,663 )   $ 1.03  
Outstanding at September 30, 2013     17,662,583     $ 0.33  
Exercisable at September 30, 2013     5,295,100     $ 0.89  
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)  
    Nine Months Ended September 30,  
    2013     2012  
Dividend yield     0.00 %     0.00 %
Stock volatility     137.2 %     111.2-148.7 %
Average Risk-free interest rate     0.68 %     0.25-0.28 %
Average option term (years)     3       4