lwlg_10q.htm
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
_____________________
 
FORM 10-Q
____________________
 
(Mark One)

ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2013
 
OR
 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from _____________to _____________

Commission File Number 0-52567

Lightwave Logic, Inc.
(Exact name of registrant as specified in its charter)

Nevada
(State or other jurisdiction of
Incorporation or Organization)
82-049-7368
 (I.R.S. Employer Identification No.)
 
111 Ruthar Drive
Newark, DE
(Address of principal executive offices)
19711
(Zip Code)
 
(302) 356-2717
(Registrant’s telephone number, including area code)

 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x  No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes  x No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)Yes ¨   No x

The number of shares of the registrant’s Common Stock outstanding as of November 13, 2013 was 52,592,789.

 
 

 
 

 

 
TABLE OF CONTENTS
 
PART I FINANCIAL INFORMATION

   
Page
     
Part I
Financial Information
2
       
 
Item 1
Financial Statements
2
       
 
Item 2
Management’s Discussion and Analysis of Financial Condition and Results of Operations
23
       
 
Item 4
Controls and Procedures
35
       
Part II
Other Information
36
       
 
Item 2
Unregistered Sales of Equity Securities and Use of Proceeds
36
       
 
Item 6
Exhibits
36
       
   
Signatures
37


 
1

 
 
PART I – FINANCIAL INFORMATION


Item 1                      Financial Information

 





LIGHTWAVE LOGIC, INC.
(A Development Stage Company)

FINANCIAL STATEMENTS

SEPTEMBER 30, 2013

(UNAUDITED)




 





 
2

 
LIGHTWAVE LOGIC, INC.
(A Development Stage Company)



 



CONTENTS

 
PAGE
   
BALANCE SHEETS
4
   
STATEMENTS OF OPERATIONS
5
   
STATEMENT OF STOCKHOLDERS’ EQUITY
6
   
STATEMENTS OF CASH FLOWS
13
   
NOTES TO FINANCIAL STATEMENTS
15

 










 
3

 
LIGHTWAVE LOGIC, INC.
(A Development Stage Company)
BALANCE SHEETS
 
   
September 30,
2013
   
December 31,
2012
 
   
(Unaudited)
   
(Audited)
 
 ASSETS
           
 CURRENT ASSETS
           
Cash and cash equivalents
  $ 2,621,067     $ 2,936,879  
Prepaid expenses and other current assets
    145,421       89,975  
      2,766,488       3,026,854  
                 
 PROPERTY AND EQUIPMENT - NET
    324,780       300,994  
                 
 OTHER ASSETS
               
Intangible assets - net
    538,596       488,526  
                 
 TOTAL ASSETS
  $ 3,629,864     $ 3,816,374  
                 
                 
 LIABILITIES AND STOCKHOLDERS' EQUITY
               
 CURRENT LIABILITIES
               
Accounts payable
  $ 247,468     $ 96,384  
Accounts payable and accrued expenses- related parties
    98,466       55,606  
Accrued expenses
    37,921       3,338  
                 
 TOTAL LIABILITIES
    383,855       155,328  
                 
 STOCKHOLDERS' EQUITY
               
Preferred stock, $0.001 par value, 1,000,000 authorized
No shares issued or outstanding
    -       -  
Common stock $0.001 par value, 100,000,000 authorized
52,046,797 and 50,160,758 issued and outstanding at
September 30, 2013 and December 31, 2012
    52,047       50,161  
Additional paid-in-capital
    34,695,159       32,042,751  
Accumulated deficit
    (15,827 )     (15,827 )
Deficit accumulated during development stage
    (31,485,370 )     (28,416,039 )
                 
 TOTAL STOCKHOLDERS' EQUITY
    3,246,009       3,661,046  
                 
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $ 3,629,864     $ 3,816,374  

See accompanying notes to these financial statements.
 
4

 
LIGHTWAVE LOGIC, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND NINE MONTHS ENDING SEPTEMBER 30, 2013 AND 2012 AND FOR THE PERIOD
JANUARY 1, 2004 (INCEPTION OF DEVELOPMENT STAGE) TO SEPTEMBER 30, 2013
(UNAUDITED)
                               
 
         
For the Three
   
For the Three
   
For the Nine
   
For the Nine
 
   
Cumulative
   
Months Ending
   
Months Ending
   
Months Ending
   
Months Ending
 
   
Since
   
September 30,
   
September 30,
   
September 30,
   
September 30,
 
   
Inception
   
2013
   
2012
   
2013
   
2012
 
                               
                               
NET SALES
  $ 3,200     $ -     $ -     $ -     $ -  
                                         
COST AND EXPENSE
                                       
Research and development
    14,721,089       580,403       490,694       1,566,901       1,418,357  
General and administrative
    16,219,928       417,357       479,103       1,298,361       1,330,153  
      30,941,017       997,760       969,797       2,865,262       2,748,510  
                                         
LOSS FROM OPERATIONS
    (30,937,817 )     (997,760 )     (969,797 )     (2,865,262 )     (2,748,510 )
                                         
OTHER INCOME (EXPENSE)
                                       
Interest income
    31,250       63       125       204       447  
Dividend income
    1,551       -       -       -       -  
Realized gain on investment
    3,911       -       -       -       -  
Realized gain on disposal of assets
    637       -       -       -       -  
Litigation settlement
    (47,500 )                                
Commitment fee and Interest expense
    (537,402 )     -       -       (204,273 )     (120,560 )
                                         
                                         
NET LOSS
  $ (31,485,370 )   $ (997,697 )   $ (969,672 )   $ (3,069,331 )   $ (2,868,623 )
                                         
Basic and Diluted Loss per Share
          $ (0.02 )   $ (0.02 )   $ (0.06 )   $ (0.06 )
                                         
Basic and Diluted Weighted Average Number of Shares
      52,046,797       49,506,837       51,417,151       48,435,475  

See accompanying notes to these financial statements.
 
5

 
LIGHTWAVE LOGIC, INC.
(A Development Stage Company)
STATEMENT OF STOCKHOLDERS’ EQUITY
FOR THE PERIOD JANUARY 1, 2004 (INCEPTION OF DEVELOPMENT STAGE) TO
SEPTEMBER 30, 2013
(UNAUDITED)

                     
Subscription
                      Deficit        
                     
Receivable/
                      Accumulated        
                     
Receivable
           Unrealized    
 
   
During
       
   
Number of
   
Common
   
Paid-in
   
for Issuance
   
Deferred
   
 Loss
   
Accumulated
   
Development
       
   
Shares
   
Stock
   
Capital
   
of Common Stock
   
Charges
   
on Securities
   
Deficit
   
 Stage
   
Total
 
                                                       
ENDING BALANCE AT DECEMBER 31, 2003
    100     $ 1     $ -     $ -     $ -     $ -     $ (15,827 )   $ -     $ (15,826 )
                                                                         
Retroactive recapitalization upon reverse acquisition
    706,973       706       (706 )     -       -       -       -       -       -  
                                                                         
BALANCE AT JANUARY 1, 2004
    707,073       707       (706 )     -       -       -       (15,827 )     -       (15,826 )
                                                                         
Common stock issued to founders
    13,292,927       13,293       (13,293 )     -       -       -       -       -       -  
Common stock issued for future services in July 2004 at $0.16/share
    1,600,000       1,600       254,400       -       -       -       -       -       256,000  
Common stock issued at merger
    2,000,000       2,000       (2,000 )     -       -       -       -       -       -  
Common stock issued for future services in August 2004 at $0.12/share
    637,500       638       74,362       -       -       -       -       -       75,000  
Conversion of note payable in December 2004 at $0.16/share
    187,500       187       29,813       -       -       -       -       -       30,000  
Net loss for the year ended December 31, 2004
    -       -       -       -       -       -       -       (722,146 )     (722,146 )
                                                                         
BALANCE AT DECEMBER 31, 2004
    18,425,000       18,425       342,576       -       -       -       (15,827 )     (722,146 )     (376,972 )
                                                                         
Common stock issued in private placement in April 2005 at $0.25/share
    4,000,000       4,000       996,000       -       -       -       -       -       1,000,000  
Conversion of notes payable in May 2005 at $0.16/share
    3,118,750       3,119       495,881       -       -       -       -       -       499,000  
Subscription receivable
    -       -       -       (6,500 )     -       -       -       -       (6,500 )
Common stock issued for future services in August 2005, valued at $2.79/share
    210,000       210       585,290       -       -       -       -       -       585,500  
Common stock issued for future services in August 2005, valued at $2.92/share
    200,000       200       583,800       -       -       -       -       -       584,000  
Warrants issued for services in May 2005, vested during 2005, valued at $1.13/share
    -       -       37,000       -       -       -       -       -       37,000  
Warrants issued for services in September 2005, vested during 2005, valued at $1.45/share
    -       -       24,200       -       -       -       -       -       24,200  
Warrants issued for services in October 2005, vested during 2005, valued at $0.53/share
    -       -       15,900       -       -       -       -       -       15,900  
Warrants issued for future services in December 2005, vested during 2005, valued at $1.45/share
    -       -       435,060       -       -       -       -       -       435,060  
Deferred charges for common stock issued for future services in August 2005, valued at $2.92/share
    -       -       -       -       (584,000 )     -       -       -       (584,000 )
Amortization of deferred charges
    -       -       -       -       265,455       -       -       -       265,455  
Exercise of warrants in December 2005 at $0.25/share
    300,000       300       74,700       -       -       -       -       -       75,000  
Net loss for the year ended December 31, 2005
    -       -       -       -       -       -       -       (1,721,765 )     (1,721,765 )
                                                                         
BALANCE AT DECEMBER 31, 2005
    26,253,750       26,254       3,590,407       (6,500 )     (318,545 )     -       (15,827 )     (2,443,911 )     831,878  
                                                                         
Common stock issued in private placement during 2006 at $0.50/share
    850,000       850       424,150       -       -       -       -       -       425,000  
Common stock issued for future services in February 2006, valued at $0.90/share
    300,000       300       269,700       -       -       -       -       -       270,000  
Common stock issued for future services in May 2006, valued at $1.55/share
    400,000       400       619,600       -       -       -       -       -       620,000  
Common stock issued for future services in June 2006, valued at $1.45/share
    25,000       25       36,225       -       -       -       -       -       36,250  
Common stock issued for future services in November 2006, valued at $0.49/share
    60,000       60       29,340       -       -       -       -       -       29,400  
Warrants issued for services in September 2005, vested during 2006, valued at $1.45/share
    -       -       66,500       -       -       -       -       -       66,500  
Warrants issued for future services in June 2006, vested during 2006, valued at $1.55/share
    -       -       465,996       -       -       -       -       -       465,996  
Options issued for services in February 2006, vested during 2006, valued at $1.01/share
    -       -       428,888       -       -       -       -       -       428,888  
Contributed capital related to accrued interest
    -       -       35,624       -       -       -       -       -       35,624  
Subscription receivable
    -       -       -       6,500       -       -       -       -       6,500  
Amortization of deferred charges
    -       -       -       -       318,545       -       -       -       318,545  
Unrealzed gain (loss) on securities
    -       -       -       -       -       (26,000 )     -       -       (26,000 )
Net loss for the year ending December 31, 2006
    -       -       -       -       -               -       (2,933,809 )     (2,933,809 )
                                                                         
BALANCE AT DECEMBER 31, 2006
    27,888,750       27,889     $ 5,966,430     $ -     $ -     $ (26,000 )   $ (15,827 )   $ (5,377,720 )   $ 574,772  

 
See accompanying notes to these financial statements.
 
6

 
LIGHTWAVE LOGIC, INC.
(A Development Stage Company)
STATEMENT OF STOCKHOLDERS’ EQUITY
FOR THE PERIOD JANUARY 1, 2004 (INCEPTION OF DEVELOPMENT STAGE) TO
SEPTEMBER 30, 2013 (CONTINUED)
(UNAUDITED)

                     
Subscription
                       Deficit        
                     
Receivable/
               
 
     Accumulated        
                     
Receivable
           Unrealized          
During 
       
   
Number of
   
Common
   
Paid-in
   
for Issuance
   
Deferred
   
 Loss
   
Accumulated
   
Development
       
   
Shares
   
Stock
   
Capital
   
of Common Stock
   
Charges
   
on Securities
   
Deficit
   
 Stage
   
Total
 
                                                       
BALANCE AT DECEMBER 31, 2006
    27,888,750       27,889     $ 5,966,430     $ -     $ -     $ (26,000 )   $ (15,827 )   $ (5,377,720 )   $ 574,772  
                                                                         
Common stock issued in private placement during 2007 at $0.50/share
    2,482,000       2,482       1,238,518       -       -       -       -       -       1,241,000  
Common stock issued in private placement during 2007 at $0.60/share
    1,767,540       1,768       1,058,756       -       -       -       -       -       1,060,524  
Common stock subscription rescinded during 2007 at $0.50/share
    (400,000 )     (400 )     (199,600 )     -       -       -       -       -       (200,000 )
Common stock issued for future services in February 2007, valued at $0.70/share
    151,785       152       106,098       -       -       -       -       -       106,250  
Common stock issued for future services in March 2007, valued at $0.58/share
    1,000,000       1,000       579,000       -       -       -       -       -       580,000  
Common stock issued for services and settlement for accounts payable in April 2007, valued at $0.35/share
    100,000       100       34,900       -       -       -       -       -       35,000  
Common stock issued for services in October 2007, valued at $0.68/share
    150,000       150       101,850       -       -       -       -       -       102,000  
Common stock issued for services in October 2007, valued at $0.90/share
    150,000       150       134,850       -       -       -       -       -       135,000  
Common stock issued for services in November 2007, valued at $0.72/share
    400,000       400       287,600       -       -       -       -       -       288,000  
Warrants issued for services in September 2005, vested during 2007, valued at $1.45/share
    -       -       36,370       -       -       -       -       -       36,370  
Warrants issued for services in March 2007, vested during 2007, valued at $0.63/share
    -       -       52,180       -       -       -       -       -       52,180  
Warrants issued for services in April 2007, vested during 2007, valued at $0.69/share
    -       -       293,476       -       -       -       -       -       293,476  
Warrants issued for services in April 2007, vested during 2007, valued at $0.63/share
    -       -       140,490       -       -       -       -       -       140,490  
Warrants issued for services in May 2007, vested during 2007, valued at $0.56/share
    -       -       52,946       -       -       -       -       -       52,946  
Warrants issued for services in October 2007, vested during 2007, valued at $0.61/share
    -       -       61,449       -       -       -       -       -       61,449  
Warrants issued for services in October 2007, vested during 2007, valued at $0.78/share
    -       -       52,292       -       -       -       -       -       52,292  
Warrants issued for services in December 2007, vested during 2007, valued at $0.55/share
    -       -       1,159       -       -       -       -       -       1,159  
Options issued for services in February 2006, vested during 2007, valued at $1.01/share
    -       -       17,589       -       -       -       -       -       17,589  
Options issued for services in February 2006, vested during 2007, valued at $1.09/share
    -       -       43,757       -       -       -       -       -       43,757  
Options issued for services in November 2007, vested during 2007, valued at $0.60/share
    -       -       41,653       -       -       -       -       -       41,653  
Warrants issued for future services in April 2007, vested during 2007, valued at $0.70/share
    -       -       348,000       -       -       -       -       -       348,000  
Deferred charges for common stock issued for future services in March 2007, valued at $0.58/share
    -       -       -       -       (928,000 )     -       -       -       (928,000 )
Amortization of deferred charges
    -       -       -       -       773,333       -       -       -       773,333  
Unrealzed gain (loss) on securities
    -       -       -       -       -       (32,610 )     -       -       (32,610 )
Net loss for the year ending December 31, 2007
    -       -       -       -       -       -       -       (4,223,449 )     (4,223,449 )
                                                                         
BALANCE AT DECEMBER 31, 2007
    33,690,075       33,690       10,449,763       -       (154,667 )     (58,610 )     (15,827 )     (9,601,169 )     653,180  
                                                                         
Common stock issued in private placement during 2008 at $0.60/share
    690,001       690       413,310       -       -       -       -       -       414,000  
Common stock issued for services in March 2008, valued at $0.75/share
    100,000       100       74,900       -       -       -       -       -       75,000  
Common stock issued for services in August 2008, valued at $1.80/share
    200,000       200       359,800       -       -       -       -       -       360,000  
Exercise of warrants at $0.25/share
    320,000       320       79,680       -       -       -       -       -       80,000  
Exercise of warrants at $0.25/share, pursuant to November 2008 adjusted stock offering
    641,080       641       159,629       -                                       160,270  
Exercise of warrants at $0.50/share
    270,000       270       134,730       -       -       -       -       -       135,000  
Warrants issued for services in September 2005, vested during 2008, valued at $1.45/share
    -       -       27,014       -       -       -       -       -       27,014  
Warrants issued for services in March 2007, vested during 2008, valued at $0.63/share
    -       -       10,885       -       -       -       -       -       10,885  
Warrants issued for services in April 2007, vested during 2008, valued at $0.69/share
    -       -       121,713       -       -       -       -       -       121,713  
Warrants issued for services in April 2007, vested during 2008, valued at $0.63/share
    -       -       48,738       -       -       -       -       -       48,738  
Warrants issued for services in May 2007, vested during 2008, valued at $0.56/share
    -       -       31,444       -       -       -       -       -       31,444  
Warrants issued for services in December 2007, vested during 2008, valued at $0.55/share
    -       -       12,487       -       -       -       -       -       12,487  
Options issued for services in November 2007, vested during 2008, valued at $0.60/share
    -       -       286,803       -       -       -       -       -       286,803  
Options issued for services in January 2008, vested during 2008, valued at $0.60/share
    -       -       30,750       -       -       -       -       -       30,750  
Options issued for services in July 2008, vested during 2008, valued at $1.48/share
    -       -       114,519       -       -       -       -       -       114,519  
Options issued for services in August 2008, vested during 2008, valued at $1.36/share
    -       -       525,263       -       -       -       -       -       525,263  
Options issued for services in November 2008, vested during 2008, valued at $0.50/share
    -       -       6,439       -       -       -       -       -       6,439  
Warrants issued for future services in March 2008, vested through September 2008, valued at $0.83/share
    -       -       332,000       -       (332,000 )     -       -       -       -  
Warrants issued for services in May 2008, vested through September 2008, valued at $1.63/share
    -       -       976,193       -       -       -       -       -       976,193  
Amortization of deferred charges
    -       -       -       -       431,337       -       -       -       431,337  
Receivable for the issuance of common stock
    -       -       -       (12,500 )     -       -       -       -       (12,500 )
Realized loss reclassification
    -       -       -       -       -       58,610       -       -       58,610  
Net loss for the year ending December 31, 2008
    -       -       -       -       -       -       -       (4,340,607 )     (4,340,607 )
                                                                         
BALANCE AT DECEMBER 31, 2008
    35,911,156     $ 35,911     $ 14,196,060     $ (12,500 )   $ (55,330 )   $ -     $ (15,827 )   $ (13,941,776 )   $ 206,538  


See accompanying notes to these financial statements.
 
7

 
LIGHTWAVE LOGIC, INC.
(A Development Stage Company)
STATEMENT OF STOCKHOLDERS’ EQUITY
FOR THE PERIOD JANUARY 1, 2004 (INCEPTION OF DEVELOPMENT STAGE) TO
SEPTEMBER 30, 2013 (CONTINUED)
(UNAUDITED)

                     
Subscription
                       Deficit        
                     
Receivable/
                       Accumulated        
                     
Receivable
           Unrealized          
During
       
   
Number of
   
Common
   
Paid-in
   
for Issuance
   
Deferred
   
 Loss
   
Accumulated
   
Development
       
   
Shares
   
Stock
   
Capital
   
of Common Stock
   
Charges
   
on Securities
   
Deficit
   
Stage
   
Total
 
                                                       
BALANCE AT DECEMBER 31, 2008
    35,911,156     $ 35,911     $ 14,196,060     $ (12,500 )   $ (55,330 )   $ -     $ (15,827 )   $ (13,941,776 )   $ 206,538  
                                                                         
Rights to purchase shares issued in January 2009, vested during 2009, valued at $0.33/share
    -       -       132,058       -       -       -       -       -       132,058  
Common stock issued for services in January 2009, valued at $0.58/share
    100,000       100       57,900       -       -       -       -       -       58,000  
Common stock issued for services & settlement for accounts payable January 2009 valued at $0.25/share
    100,000       100       24,900       -       -       -       -       -       25,000  
Exercise of purchase right agreement in January 2009 at $0.25/share
    180,550       181       44,957       -       -       -       -       -       45,138  
Exercise of warrants at $0.25/share, pursuant to November 2008 adjusted stock offering
    1,279,336       1,279       318,555       -       -       -       -       -       319,834  
Exercise of warrants at $0.001/share
    400,000       400       -       -       -       -       -       -       400  
Exercise of warrants at $1.00/share
    355,000       355       354,645       -       -       -       -       -       355,000  
Options issued for services in November 2007, vested during 2009, valued at $0.60/share
    -       -       199,234       -       -       -       -       -       199,234  
Options issued for services in January 2008, vested during 2009, valued at $0.60/share
    -       -       13,583       -       -       -       -       -       13,583  
Options issued for services in July 2008, vested during 2009, valued at $1.48/share
    -       -       67,838       -       -       -       -       -       67,838  
Options issued for services in August 2008, vested during 2009, valued at $1.36/share
    -       -       623,246       -       -       -       -       -       623,246  
Options issued for services in November 2008, vested during 2009, valued at $0.50/share
    -       -       61,346       -       -       -       -       -       61,346  
Options issued for services in January 2009, vested during 2009, valued at $0.53/share
    -       -       13,136       -       -       -       -       -       13,136  
Options issued for services in February 2009, vested during 2009, valued at $0.38/share
    -       -       9,583       -       -       -       -       -       9,583  
Options issued for services in June 2009, vested during 2009, valued at $0.85/share
    -       -       21,085       -       -       -       -       -       21,085  
Warrants issued for services in June 2009, vested during 2009, valued at $0.85/share
    -       -       177,881       -       -       -       -       -       177,881  
Contribution of accrued payroll in February 2009
    -       -       52,129       -       -       -       -       -       52,129  
Amortization of deferred charges
    -       -       -       -       55,330       -       -       -       55,330  
Payment for the issuance of common stock
    -       -       -       12,500       -       -       -       -       12,500  
Common stock issued for services in June 2009, valued at $0.34/share
    116,000       116       39,884       -       -       -       -       -       40,000  
Common stock issued for services & settlement for accounts payable June 2009 valued at $0.34/share
    145,000       145       49,855       -       -       -       -       -       50,000  
Common stock issued in private placement during June 2009 at $0.34/share
    2,479,500       2,480       852,520       -       -       -       -       -       855,000  
Common stock issued for services in July 2009, valued at $0.75/share
    100,000       100       74,900       -       -       -       -       -       75,000  
Net loss for the year ending December 31, 2009
    -       -       -       -       -       -       -       (2,721,871 )     (2,721,871 )
                                                                         
BALANCE AT December 31, 2009
    41,166,542       41,167       17,385,295       -       -       -       (15,827 )     (16,663,647 )     746,988  
                                                                         
Options issued for services in November 2007, vested during 2010, valued at $0.60/share
    -       -       174,866       -       -       -       -       -       174,866  
Options issued for services in January 2008, vested during 2010, valued at $0.60/share
    -       -       14,873       -       -       -       -       -       14,873  
Options issued for services in July 2008, vested during 2010, valued at $1.48/share
    -       -       74,061       -       -       -       -       -       74,061  
Options issued for services in August 2008, vested during 2010, valued at $1.36/share
    -       -       643,812       -       -       -       -       -       643,812  
Options issued for services in November 2008, vested during 2010, valued at $0.50/share
    -       -       31,478       -       -       -       -       -       31,478  
Warrants issued for services in June 2009, vested during 2010, valued at $0.85/share
    -       -       213,459       -       -       -       -       -       213,459  
Warrants issued for services in January 2010, vested during 2010, valued at $1.83/share
                    580,167       -       -       -       -       -       580,167  
Warrants issued for services in March 2010, vested during 2010, valued at $1.86/share
    -       -       214,063       -       -       -       -       -       214,063  
Options issued for services in August 2010, vested during 2010, valued at $1.31/share
                    27,434       -       -       -       -       -       27,434  
Options issued for services in December 2010, vested during 2010, valued at $1.14/share
                    286,002       -       -       -       -       -       286,002  
Exercise of warrants at $0.25/share
    947,200       947       235,853       -       -       -       -       -       236,800  
Exercise of options at $0.25/share
    15,000       15       3,735       -       -       -       -       -       3,750  
Exercise of warrants at $0.345/share
    10,000       10       3,440       -       -       -       -       -       3,450