Stock-Based Compensation

3 Months Ended

Jun. 30, 2011

Compensation Related Costs, Share Based Payments

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 13.   STOCK-BASED COMPENSATION

In May 2007, the Board of Directors of the Company adopted and approved the 2007 Employee Incentive Stock Option Plan (the “2007 Plan”), which authorized the issuance of up to 2,000,000 shares of common stock under the 2007 Plan. Subject to the terms and provisions of the 2007 Plan, the Board of Directors, at any time and from time to time, may grant shares of stock to eligible persons in such amounts and upon such terms and conditions as the Board of Directors shall determine.

The Company granted a total of 2,000,000 shares of its common stock to twenty two employees in 2007 under the 2007 Plan with a weighted average grant price of $0.49 and average vesting period of 3 years.

In April 2008, the Board of Directors of the Company adopted and approved the 2008 Employee Incentive Stock Option Plan (the “2008 Plan”), which authorized the issuance of up to 3,000,000 shares of common stock under the 2008 Plan. Subject to the terms and provisions of the 2008 Plan, the Board of Directors, at any time and from time to time, may grant shares of stock to eligible persons in such amounts and upon such terms and conditions as the Board of Directors shall determine.

The Company granted a total of 2,950,000 shares of its common stock to consultants and seven employees on April 28, 2008 under the Plan with a weighted average grant price of $0.45 and average vesting period of 10 years.

 These restricted stock issuances are accounted for at fair value, based upon the closing stock price at the date of grant.  The corresponding expense is amortized over the vesting period.  A summary of the status of the Company’s non-vested shares as of June 30, 2011, and changes during the six months ended June 30, 2011, is presented below:

			Weighted-Average
	Shares		Grant Date Fair Value
Non-vested at December 31, 2010		2,426,666	$	1,197,333
Granted		-		-
Vested		167,500		83,375
Forfeited		-		-
Non-vested at June 30, 2011		2,259,166	$	1,113,958

            A summary of the status of the Company’s deferred stock compensation under the Plan as of June 30, 2011, and changes for the six months ended June30, 2011, is presented below:

Deferred stock compensation as of December 31, 2010	$	1,195,916
Compensation expenses debited to statement of operations
with a credit to additional paid-in capital		(83,375	)
Deferred stock compensation as of June 30, 2011	$	1,112,542

The total remaining unrecognized compensation related to deferred stock issuances will be amortized over the weighted-average remaining requisite service period of eight years.

On June 9, 2010, the Company entered into Independent Directors Contracts with two new directors. The Company agreed to pay these directors a total cash fee of $54,000 per annum and to issue to them common stock valued at $60,000 on June 9, 2011, if they remain on the Board on that date.  The Board plans to issue the shares in August 2011.