SHARE BASED COMPENSATION

9 Months Ended

Sep. 30, 2014

SHARE BASED COMPENSATION [Text Block]

19.	SHARE-BASED COMPENSATION
	On July 27, 2009, the Company’s Board of Directors adopted the American Lorain Corporation 2009 Incentive Stock Plan (the “Plan”). The Plan provides that the maximum number of shares of the Company’s common stock that may be issued under the Plan is 2,500,000 shares. The Company’s employees, directors, and service providers are eligible to participate in the Plan.
	For the year ended December 31, 2009, the Company recorded a total of $166,346 of shared-based compensation expense. The Company issued warrants that upon exercise would result in the issuance of 1,334,573 common shares. These stock options vest over three years, where 33.33% vest annually. The expense related to the stock options was $107,375. The Company also recorded expense of $58,971 for the issuance of 56,393 common shares to participants; these common shares vested immediately. Given the materiality and nature of share-based compensation, the entire expense has been recorded as general and administrative expenses. For the year ended December 31, 2010, the Company recorded a total of $890,209 stock option and its related general and administrative expenses.
	During the years ended December 31, 2013 and 2012, the Company recorded a total of $0 and $503,493 stock option and related general and administrative expenses.
	During the period ended September 30, 2014, the Company did not grant any stock options.
	The range of the exercise prices of the stock options granted since inception of the plan are shown in the following table:

Price Range	Number of Shares
$0 - $4.99	1,334,573 shares
$5.00 - $9.99	0 shares
$10.00 - $14.99	0 shares

No tax benefit has yet been accrued or realized. For the period ended December 31, 2013, the Company has yet to repatriate its earnings. Accordingly it has not recognized any deferred tax assets or liability in regards to benefits derived from the issuance of stock options.

The Company used the Black-Scholes Model to value the warrants granted. The following shows the weighted average fair value of the grants and the assumptions that were employed in the model:

		2012		2011
Weighted-average fair value of grants:	$	1.3629	$	1.1909
Risk-free interest rate:		0.33%		0.96%
Expected volatility:		59.93%		4.58%
Expected life in months:		36.00		36.00