DERIVATIVE LIABILITIES	9 Months Ended
Sep. 30, 2011
DERIVATIVE LIABILITIES [Text Block]	NOTE 11: DERIVATIVE LIABILITIES The Company granted a total of 3,401,320 warrants in connection with their private placement in February 2010. Pursuant to the Subsequent Equity Sales section under warrant agreement the Company granted, if and whenever on or after the date of inception and through the earlier to occur of (i) eighteen months from the date hereof and (ii) date that there is an effective registration statement on file with the Securities and Exchange Commission covering the resale of all of the Warrant Stock and all of the shares of common stock issued in the offering, the Company issues or sells any shares of common stock or securities convertible into common stock for a consideration per share of common stock less than the then current Exercise Price, then, the Exercise Price shall be multiplied by a fraction. Because of the reset provision, the warrant agreement is considered not indexed to the Company’s stock and therefore the 3,401,320 warrants were determined to be a derivative liability under ASC 815-15 and ASC 815-20. The fair value of these warrants at the inception of the private placement was $1,218,744. At June 30, 2011 and December 31, 2010, the derivative liability was valued at $563,117 and $1,141,118, respectively using the Multinomial Lattice models. The $578,001 change in fair value is reported in the Company’s consolidated statement of operations as a gain on derivatives. The warrants were valued with the following assumptions: at February 10, 2010 - annual volatility of 73%, term of 5 years, risk free rate of 2.39%, target exercise price of $2.50 for the $1.25 warrants and $3.00 for the $1.60 warrants; at December 31, 2010 - annual volatility of 50%, term of 4.11 years, risk free rate of 2.01%, target exercise price of $2.50 for the $1.25 warrants and $3.00 for the $1.60 warrants; at June 30, 2011- annual volatility of 50%, term of 3.62 years, risk free rate of 1.76%, target exercise price of $2.50 for the $1.25 warrants and $3.00 for the $1.60 warrants. The projected volatility is based on average volatility of 15 comparable companies over the previous years as the Company does not have sufficient trading history. The attributes of the comparable companies used in volatility analysis included 1) SIC 3600 (Electrical Equipment) and 3670 (Electronics), 2) Battery and power related products and services, 3) Market cap $38 million to $3.9 billion, 4) Global sales and operations, and 5) Annual revenues $73 million to 1.8 billion. During the three months ended September 30, 2011, the reset provision of warrants to purchase common stock expired. These warrants were previously accounted for as liabilities under ASC 815. As a result of the expiration, the Company recorded a gain on change in fair value of derivative liability for three months ended September 30, 2011 to reduce the warrant liabilities to $0.

DERIVATIVE LIABILITIES

9 Months Ended

Sep. 30, 2011

NOTE 11: DERIVATIVE LIABILITIES

The Company granted a total of 3,401,320 warrants in connection with their private placement in February 2010. Pursuant to the Subsequent Equity Sales section under warrant agreement the Company granted, if and whenever on or after the date of inception and through the earlier to occur of (i) eighteen months from the date hereof and (ii) date that there is an effective registration statement on file with the Securities and Exchange Commission covering the resale of all of the Warrant Stock and all of the shares of common stock issued in the offering, the Company issues or sells any shares of common stock or securities convertible into common stock for a consideration per share of common stock less than the then current Exercise Price, then, the Exercise Price shall be multiplied by a fraction. Because of the reset provision, the warrant agreement is considered not indexed to the Company’s stock and therefore the 3,401,320 warrants were determined to be a derivative liability under ASC 815-15 and ASC 815-20. The fair value of these warrants at the inception of the private placement was $1,218,744.

At June 30, 2011 and December 31, 2010, the derivative liability was valued at $563,117 and $1,141,118, respectively using the Multinomial Lattice models. The $578,001 change in fair value is reported in the Company’s consolidated statement of operations as a gain on derivatives. The warrants were valued with the following assumptions: at February 10, 2010 - annual volatility of 73%, term of 5 years, risk free rate of 2.39%, target exercise price of $2.50 for the $1.25 warrants and $3.00 for the $1.60 warrants; at December 31, 2010 - annual volatility of 50%, term of 4.11 years, risk free rate of 2.01%, target exercise price of $2.50 for the $1.25 warrants and $3.00 for the $1.60 warrants; at June 30, 2011- annual volatility of 50%, term of 3.62 years, risk free rate of 1.76%, target exercise price of $2.50 for the $1.25 warrants and $3.00 for the $1.60 warrants. The projected volatility is based on average volatility of 15 comparable companies over the previous years as the Company does not have sufficient trading history. The attributes of the comparable companies used in volatility analysis included 1) SIC 3600 (Electrical Equipment) and 3670 (Electronics), 2) Battery and power related products and services, 3) Market cap $38 million to $3.9 billion, 4) Global sales and operations, and 5) Annual revenues $73 million to 1.8 billion.

During the three months ended September 30, 2011, the reset provision of warrants to purchase common stock expired. These warrants were previously accounted for as liabilities under ASC 815. As a result of the expiration, the Company recorded a gain on change in fair value of derivative liability for three months ended September 30, 2011 to reduce the warrant liabilities to $0.