STOCK OPTIONS (Tables)
9 Months Ended
Sep. 30, 2012
Stock Options [Abstract]  
Summary of Weighted Average Assumptions and Fair Value of Options

On June 6, 2011, we granted 975,000 stock options to directors and officers as follows:

 

  · Options to purchase up to a total of 75,000 shares of common stock were granted to three members of the Board of Directors. These options vested and became exercisable immediately. The weighted-average estimated fair value of the stock options granted was $0.65 per share using the Black-Scholes model with the following assumptions:

 

Description   Amount  
         
Expected volatility     165 %
Risk-free interest rate     0.74 %
Expected life     3 years  
Dividend yield     0 %

 

 

  · Options to purchase up to a total of 900,000 shares of common stock were granted to two executive officers. These options vest and become exercisable in twelve quarterly periods for the first three years of the five-year life of the options. The weighted-average estimated fair value of the stock options granted was $0.72 per share using the Black-Scholes model with the following assumptions:

 

Description   Amount  
         
Expected volatility     165 %
Risk-free interest rate     1.60 %
Expected life     5 years  
Dividend yield     0 %

 

· On June 28, 2012, we granted 150,000 stock options to purchase up to a total of 150,000 shares of common stock to certain members of the Board of Directors as director compensation. These options vested and became exercisable immediately resulting in a charge of $132,000. The weighted-average estimated fair value of the stock options granted was $0.88 per share using the Black-Scholes model with the following assumptions:

 

Description   Amount  
         
Expected volatility     136 %
Risk-free interest rate     0.40 %
Expected life     3 years  
Dividend yield     0 %