Stock Based Compensation

9 Months Ended

Sep. 30, 2012

Stock Based Compensation [Abstract]

Stock Based Compensation [Text Block]

7. Stock Based Compensation

The Company issued warrants and options to purchase common shares of the Company as compensation for consulting and Board of Directors services. The value of warrants and options issued for compensation are accounted for as a non-cash expense to the Company at the fair value of the warrants and options issued. The Company values the warrants and options at fair value as calculated by using the Black-Scholes option-pricing model. As of September 30, 2012 the Company has $0 in unamortized stock based compensation related to outstanding options and warrants.

The following table summarizes the warrant and option activity for the nine months ended September 30, 2012: 

	Number of
(Unaudited)	Warrants and Options			Weighted-Average Exercise Price
Outstanding, December 31, 2011		25,000		$	4.08
Granted		0			0
Exercised		(15,000	)		4.46
Cancelled		—			—
Outstanding, September 30, 2012		10,000		$	5.40

On July 2, 2012 and September 20, 2012 consultants exercised the remaining 15,000 warrants under “cash-less” exercise provisions of the warrant agreement. As a result, 4,232 shares of common stock were delivered to the warrant holders.

The following summarizes the options issued, outstanding and exercisable as of September 30, 2012:

Grant Date		June 2, 2011
Strike Price	$	5.40
Expiration Date		June 1, 2016
Options Remaining		10,000
Proceeds if Exercised	$	54,000