ACCRUED EMPLOYEE BONUS

9 Months Ended

Sep. 30, 2011

ACCRUED EMPLOYEE BONUS

ACCRUED EMPLOYEE BONUS

NOTE 11 — ACCRUED EMPLOYEE BONUS

“Other current liabilities” at September 30, 2011 and 2010 include accruals for year-end bonuses and related payroll taxes of $85,134 and $56,872, respectively, related to the Company’s employees worldwide.  The payment of bonuses is discretionary and subject to approval by the Board of Directors.  A majority of annual bonuses are paid in December resulting in an increasing bonus accrual during the Company’s fiscal year.  The increase in the accrual from September 30, 2010 to September 30, 2011 is due to the increase in profitability of the Company.