Stock Based Compensation

6 Months Ended

Jun. 30, 2013

7. Stock Based Compensation

The Company issued options to purchase common shares of the Company as compensation for Board of Director services. The value of options issued for compensation are accounted for as a non-cash expense to the Company at the fair value of the options issued. The Company values the options at fair value as calculated by using the Black-Scholes option-pricing model. As of June 30, 2013 the Company has $0 in unamortized stock based compensation related to outstanding options.

The following table summarizes the option activity for the six months ended June 30, 2013:

(Unaudited)	Number of Options		Weighted-Average Exercise Price

Outstanding, December 31, 2012		10,000	$	5.40
Granted		0		0
Exercised		0		0
Cancelled		0		0
Outstanding, June 30, 2013		10,000	$	5.40

The following summarizes the options issued, outstanding and exercisable as of June 30, 2013:

Grant Date		June 2, 2011
Strike Price	$	5.40
Expiration Date		June 1, 2016
Options Remaining		10,000
Proceeds if Exercised	$	54,000
Call Feature		None