Stock Awards

9 Months Ended

Sep. 30, 2011

Stock Awards [Abstract]

Stock Awards

Note 9 — Stock Awards

In August 2011, the Company issued 85,000 shares in restricted stock grant awards to certain key employees and directors. The fair value of the restricted stock grant awards was $93,500 and was calculated by multiplying the number of restricted shares issued times the closing share price on the date of issuance. The stock grants immediately vested and as a result, were recorded as compensation expense on the grant date.

In July 2011, the Company issued 40,000 shares in restricted stock grant awards to a consultant to perform professional services. The fair value of the restricted stock grant awards was $50,000 and was calculated by multiplying the number of restricted shares issued times the closing share price on the date of issuance. The stock grants vested over a five month period ending in December 2011. Professional services expense will be recorded evenly over the vesting period.

During July and August, 2011, the Company issued options to certain key employees and the Company’s chairman for the purchase of 225,000 shares of the Company’s stock at exercise prices ranging from $1.25 to $2.32. The fair value of the options was estimated to be approximately $69,000. The value of the options is recorded as compensation expense over the requisite service period which equals the vesting period for the options.

Stock-based compensation expense related to stock awards was approximately $148,000 and $22,000, respectively, during the three months ended September 30, 2011 and 2010. Stock-based compensation expense related to stock awards was approximately $191,000 and $360,000, respectively, during the nine months ended September 30, 2011 and 2010.