SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2012

Share-based Compensation [Abstract]

SHARE-BASED COMPENSATION

NOTE 14 SHARE-BASED COMPENSATION

Options granted to Independent Directors and Employees

On April 26, 2012, the Company granted options to each of its independent directors, Mr. Robert Bruce, Mr. Jonathan Serbin and Mr. Kelvin Lau to purchase 20,000 shares of the Company’s common stock at a strike price of $5.63 per share, in consideration of their services to the Company. The options vest and become exercisable in equal installments on July 14, 2012, October 14, 2012, January 14, 2013 and April 14, 2013 and will expire 10 years from the date of grant.

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 $313,309 and $98,834 for the nine and three months ended September 30, 2012, respectively.

Options issued and outstanding at September 30, 2012 and their movements during the nine 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		60,000		5.63				10.00
Exercised		-
Expired		-
Forfeited		-
Outstanding at September 30, 2012		775,000	$	5.19	$	40,800		8.75
Exercisable at September 30, 2012		205,000	$	6.87	$	40,800		7.75

(1) The intrinsic value of the stock options at September 30, 2012 and December 31, 2011 is the amount by which the market value of the Company’s common stock of $3.56 and $4.76, as of September 30, 2012 and December 31, 2011, respectively, exceeds the exercise price of the option.