Management has valued warrants at their date of issue utilizing the Black-Scholes option pricing model. The risk-free interest rate is based on the implied yield available on U.S. Treasury issues with an equivalent term approximating the expected life of the warrants depending on the date of the issue and their expected life. The expected life of warrants used was based on the term of the warrant. The Company determined the expected dividend rate based on the assumption and expectation that earnings generated from operations are not expected to be adequate to allow for the payment of dividends in the near future. The following weighted-average assumptions were utilized in the fair value calculations for warrants granted:

	Three Months Ended			Three Months Ended
	March 31, 2012			March 31,2011
Expected dividend yield		0	%		0	%
Expected stock price volatility		98	%		86-102	%
Risk-free interest rate		2.96-3.03	%		2.80-4.36	%
Expected life of warrants	8.08-9.96 years			9.07-9.6 years

	Number of Shares Remaining Warrants		Weighted Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2012		1,651,250	$	5.61
Warrants granted during 2012		16,000	$	10.00
Warrants expired/cancelled during 2012		0
Outstanding at March 31,2012		1,667,250	$	5.65		8.22	$	0
Exercisable at March 31,2012		1,087,500	$	5.00		8.08	$	0

The weighted average fair value of warrants issued during three months ended March 31, 2012 and 2011 was $10.00. During the three months ended March 31, 2012 and 2011, no warrants vested, none expired or were cancelled. No warrants have been exercised for the three months ended March 31, 2012 and 2011.