We issued 714,286 warrants in connection with the sale of common stock during the year ended December 31, 2010. Additionally, we issued 266,667 warrants in connection with the sale of common stock during the quarter ended June 30, 2011. We have accounted for these warrants as equity instruments in accordance with EITF 00-19 (ASC 815-40), Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock, and as such, will be classified in stockholders’ equity as they meet the definition of “…indexed to the issuer’s stock” in EITF 01-06 (ASC 815-40) The Meaning of Indexed to a Company’s Own Stock. We have estimated the fair value of the warrants issued in connection with the sale of common stock at $323,128 for the year ended December 31, 2011 and $42,549 for the three months ended March 31, 2012, respectively using the Black-Scholes option pricing model.

We issued 46,250 and 92,500 stock options to members of our Board of Directors during each of the three months ended March 31, 2012 and 2011, respectively. The warrants were valued at the fair market value of the services performed that resulted in an expense of $4,000 and $8,000 for the three months ended March 31, 2012 and March 31, 2011, respectively.

Key assumptions used by us are summarized as follows:

The warrants issued have been accounted for as an equity transaction. The cost of the options issued to the members of our Board of Directors was classified as operating expenses for the three months ended March 31, 2012 and March 31, 2011, respectively.

A summary of changes in share purchase warrants during the three months ended March 31, 2012 is as follows:

A summary of changes in stock options during the three months ended March 31, 2012 is as follows: