Quarterly report pursuant to Section 13 or 15(d)

Warrants

Warrants

6 Months Ended

Jun. 30, 2012

6. Warrants

A summary of warrant activities for the six month period ending June 30, 2012, and for the year ended December 31, 2011, is as follows:


	Warrants		Weighted Average Price
Balance—December 31, 2010		306,388	$	19.14
Granted		—		—
Exercised		—		—
Expired		—		—

Balance—December 31, 2011		306,388		19.14
Granted		2,170,925		2.00
Exercised		—		—
Expired		—		—

Balance—June 30, 2012		2,477,313	$	4.12

On March 23, 2012, pursuant to the terms of a Debt Exchange Agreement and a Loan Agreement with the Koski Family Limited Partnership, or KFLP, we issued warrants to acquire 1,571,405 and 599,520 shares of common stock, respectively, to the KFLP. The warrants are exercisable immediately at a price per share of $2.00 and expire three years from the date of issuance. See Note 9 — Convertible Revolving Notes Payable to Shareholder.

The warrants outstanding as of June 30, 2012 are as follows:


Exercise Price	Warrants Outstanding		Expiration Dates
$2.00		2,170,925		3/23/15
$6.00		12,500		9/14/12
$10.00		5,000		4/15/14
$15.00		161,000		5/30/13
$26.00		127,888		5/30/13

		2,477,313