Stock Based Compensation

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Stock Based Compensation

Note 6 – Stock Based Compensation

The Company recognizes share-based compensation at the fair value of the equity instrument on the grant date. Compensation expense is recognized over the required service period. Share-based compensation expense was $145,237 and $125,828 for the quarters ended June 30, 2012 and 2011, respectively. Share-based compensation expense was $232,753 and $209,438 for the six months ended June 30, 2012 and 2011, respectively. During the three months ended June 30, 2012, the Company issued 20,000 options with a weighted average fair value of $2.44 per share. During the six months ended June 30, 2012 the Company issued 84,938 options with a weighted average fair value of $2.28.

As of June 30, 2012, there was a total of $645,000 of unrecognized compensation cost related to non-vested share –based payments granted to the Company’s employees.  The remaining unamortized expense is expected to be recognized over a weighted average period of approximately 3 years.