SHARE BASED COMPENSATION

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

6. SHARE BASED COMPENSATION

The Company accounts for the issuance of equity awards to employees in accordance with ASC Topic 718 and 505, which requires that the cost resulting from all share based payment transactions be recognized in the financial statements. These pronouncements establish fair value as the measurement objective in accounting for share based payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all share based payment transactions with employees.

Stock-based compensation expense for the three and six months ended June 30, 2012 and 2011 is as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012		2011			2012		2011
Compensation cost recognized:
Stock options	$	18,058	$	(72,868	)	$	41,276	$	(37,481	)
Restricted stock		-		-			-		29,896
	$	18,058	$	(72,868	)	$	41,276	$	(7,585	)

Stock-based compensation included in operating expenses is as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012		2011			2012		2011
Selling	$	3,860	$	(46,464	)	$	7,720	$	(38,482	)
General and administrative		4,399		9,506			13,662		48,908
Research & development		9,799		(35,910	)		19,894		(18,011	)
	$	18,058	$	(72,868	)	$	41,276	$	(7,585	)