Annual report pursuant to section 13 and 15(d)

2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Tables)

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2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Tables)
12 Months Ended
Dec. 31, 2012
Summary Of Significant Accounting Practices Tables  
Property and Equipment

Property and equipment is depreciated using the straight-line method over the following estimated useful lives:

 

Asset Category Estimated Useful Life
Office Furniture and Equipment 5 years
Computer Equipment and Software 3 years

 

Fair value of stock options granted

The fair value of stock options granted was calculated with the following assumptions:

 

  2012   2011
Risk-free interest rate 0.43-1.27%   0.28-0.77%
Expected dividend yield 0%

 

 

0%
Volatility factor 85 - 90%   90%
Expected life of option 3.5-7.0 years

 

 

4.75-5.0 years