COMMON AND PREFERRED STOCK

6 Months Ended

Jun. 30, 2013

COMMON AND PREFERRED STOCK [Abstract]

COMMON AND PREFERRED STOCK

NOTE 5    COMMON AND PREFERRED STOCK

The Company's Articles of Incorporation authorize the issuance of up to 100,000,000 shares.  The shares are classified in two classes, consisting of 95,000,000 shares of common stock, par value $.001 per share, and 5,000,000 shares of preferred stock, par value $.001 per share.  The board of directors is authorized to establish one or more series of preferred stock, setting forth the designation of each such series, and fixing the relative rights and preferences of each such series.  The Company has neither designated nor issued any shares of preferred stock.

Common Stock

The following is a schedule of changes in the number of common stock during the six months ended June 30, 2013 and the year ended December 31, 2012:

	Six Months Ended June 30, 2013			Year Ended December 31, 2012
Beginning Balance		63,532,622			63,330,421
Stock Based Compensation		28,686			-
Stock Options Exercised		-			10,500
Restricted Stock Grants (Note 6)		287,851			890,379
Other Surrenders		(40,804	)		(698,678	)
Ending balance		63,808,355			63,532,622

2013 Activity

The Company's Chief Executive Officer receives shares of common stock as compensation in lieu of any cash base salary.  For the six months ended June 30, 2013, the Company issued 28,686 shares valued at $401,460 to the Chief Executive Officer as compensation in lieu of any cash base salary.

In the six months ended June 30, 2013, 3,107 shares of common stock were surrendered by certain employees of the Company to cover tax obligations in connection with their restricted stock awards.  The total value of these shares was approximately $48,000, which was based on the market price on the date the shares were surrendered.

In the six months ended June 30, 2013, 37,697 shares of restricted common stock were surrendered by employees who terminated employment with the Company.

Stock Repurchase Program

In May 2011, the Company's board of directors approved a stock repurchase program to acquire up to $150 million of the Company's outstanding common stock.  The stock repurchase program will allow the Company to repurchase its shares from time to time in the open market, block transactions and in negotiated transactions.  The Company has not made any repurchases under this program to date.