COMMON STOCK

12 Months Ended

Dec. 31, 2012

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 9:  COMMON STOCK

On February 25, 2009, the Company granted of an aggregate of 1,475,636 common shares as follows:

· Twenty percent at the date of grant;

· Twenty percent following the first anniversary of the date of grant conditional upon the achievement of a closing price not less than $0.60 and daily volume of 5,000 shares for 25 days of the 30 day period immediately prior to the anniversary date;

· Thirty percent following the second anniversary of the date of grant conditional upon the achievement of a closing price not less than $1.00 and daily volume of 5,000 shares for 25 days of the 30 day period immediately prior to the anniversary date; and

· Thirty percent following the third anniversary of the date of grant conditional upon the achievement of a closing price not less than $1.50 and daily volume of 5,000 shares for 25 days of the 30 day period immediately prior to the anniversary date.

On June 10, 2011, as consideration for services rendered, the Company modified the restricted stock award granted February 25, 2009 to waive the performance criteria and establish a time-based vesting schedule, with 634,645 shares immediately vested and the remaining 260,345 shares vested in February 2012.

The Company accounted for this as a share-based payment modification in accordance with the provisions of the FASB Accounting Standards Codification (“ASC”) Section 718. As such, the Company computed the fair value of the restricted stock immediately before and after the modification, and is expensing the incremental difference of $120,824, together with the unrecognized compensation cost attributable to the original grant of $1,738 on a pro rata basis over the remaining service period. As of December 31, 2011, 260,345 shares were unvested. The unvested shares are included in shares outstanding at December 31, 2011, but are excluded from the weighted average shares outstanding computation for basic earnings per share in accordance with ASC 260.

The Company recognized total expense of $8,913 and $114,596 during the years ended December 31, 2012 and 2011, respectively, related to restricted stock awards, inclusive of the effects of the modification. An aggregate of 285,518 shares were cancelled during the year ended December 31, 2011 as the respective individuals were terminated. The Company has no future expense related to nonvested awards.