SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2012

SHARE-BASED COMPENSATION

NOTE 14 SHARE-BASED COMPENSATION

Options granted to Independent Directors and Employees

In accordance with the guidance provided in ASC Topic 718, Stock Compensation, the compensation costs associated with these options are recognized, based on the grant-date fair values of these options, over the requisite service period, or vesting period. Accordingly, the Company recognized compensation expense of $112,875 and $82,718 for the three months ended March 31, 2012 and 2011, respectively.

Options issued and outstanding at March 31, 2012 and their movements during the three months then ended are as follows:

	Number of underlying shares		Weighted- Average Exercise Price Per Share		Aggregate Intrinsic Value (1)		Weighted- Average Contractual Life Remaining in Years
Outstanding at December 31, 2011		715,000	$	5.16	$	213,300		9.43
Granted		-
Exercised		-
Expired		-
Forfeited		-
Outstanding at March 31, 2012		715,000	$	5.16	$	762,750		9.18
Exercisable at March 31, 2012		172,500	$	7.00	$	106,500		8.01

(1) The intrinsic value of the stock options at March 31, 2012 and December 31, 2011 is the amount by which the market value of the Company’s common stock of $5.75 and $4.76, as of March 31, 2012 and December 31, 2011, respectively, exceeds the exercise price of the option.