Common Stock, Options and Warrants

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Note 10. Common Stock, Options and Warrants

The Company has authorized 150,000,000 shares of its common stock, $0.01 par value. In December 2009, the shareholders of the Company approved an increase in the number of authorized common stock from 75,000,000 to 150,000,000 shares. The increase took effect in January 2010.

In June 2011, the Company extended the exercise period for one year on 956,873 warrants to purchase common stock in the Company that had an original termination date of July 31, 2011.

Other than the issuances to certain Note investors of an aggregate of 275,000 shares of the Company’s common stock, as described in Note 7 above, and the issuance of warrants to the Company's financial advisor to purchase 600,000 shares of common stock, as described in Note 11 below, in the three months ended March 31, 2012, no common stock, or options purchase common stock, were issued or granted.  

2007 Incentive and Non-Qualified Stock Option Plan.  The fair value of options granted under the Company’s 2007 Incentive and Non-Qualified Stock Option Plan is recorded as compensation expense over the vesting period, or, for performance based awards, the expected service term.  Total compensation cost related to the Company’s employee options was $0 and $7,950 for the three months ended March 31, 2012 and 2011, respectively.