Shareholders' Equity

3 Months Ended

Jun. 30, 2011

Equity

Stockholders' Equity Note Disclosure [Text Block]

NOTE 2 – SHAREHOLDERS’ EQUITY

Reverse Stock Split – On December 17, 2010, the board of directors approved a 200:1 reverse split of the outstanding common shares and a 50:1 reverse split on the number of authorized common shares.  The board also approved a 50:1 reverse split on the number of authorized preferred shares and approved a 200:1 reverse split of the authorized and the outstanding preferred stock designated as series A convertible.  The Company has retrospectively applied the reverse split for all periods presented.  Following the reverse split, the Company has 1,000,000 shares of authorized and outstanding series A convertible preferred stock; 9,000,000 shares of authorized undesignated preferred stock; and 160,000,000 shares of authorized common stock with 22,246,661 common shares outstanding.

Common Stock – In February 2010, the Company awarded to an officer a total of 50,000 shares of unvested common stock. The common stock awarded vested over a one-year period.  Compensation expense charged against operations for this stock-based award during the three and six months ended June 30, 2011 was $0 and $5,667, respectively and is included in salary expense in the accompanying consolidated financial statements. From February 2011 forward, the common stock was fully vested.