STOCK AWARD PAYABLE

6 Months Ended

Jun. 30, 2011

STOCK AWARD PAYABLE [Abstract]

STOCK AWARD PAYABLE

NOTE 5 – STOCK AWARD PAYABLE

In 2007, the Company agreed to grant 150,000 shares in total to an Executive Vice President, John Gaensbauer, as part of his employment agreement. At the time of the grant in 2007, there were not enough authorized, unissued and available shares necessary to issue the above referenced shares to Mr. Gaensbauer.  By the time the Company had enough authorized available shares to issue the stock to Mr. Gaensbauer who had, by then, resigned his position, the Company and certain members of its former management team were defendants in a class action filed by the Company's shareholders.  Given the class action, the Company was uncertain whether it would have to ultimately issue shares to Mr. Gaensbauer, settle such stock grant in cash, or rescind the stock grant.  As such the Company recorded the stock grant as a liability and revalues it accordingly at the end of each period.  The Company continues to explore it options to resolve this outstanding issue.

For the three months ended June 30, 2011, the Company realized a loss on the revaluation of the remaining stock award.  For the six months ended June 30, 2011, the Company realized a loss on the revaluation of the remaining stock award.  The value of the outstanding stock awards at June 30, 2011 and December 31, 2010 were $178,000 and $80,000, respectively.