Note 8 - Share Based Compensation

9 Months Ended

Sep. 30, 2011

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

NOTE 8 – SHARE BASED COMPENSATION

2007 Stock Incentive Option Plan

During the three and nine months ended September 30, 2011, the Company did not issue any stock options   In accordance with the recognition provisions of  ASC 718, the Company recognized stock-based compensation expense of $8,799 and $11,138 for the three months ended September 30, 2011 and 2010, respectively.  The Company recognized stock-based compensation expense of $19,812 and $33,415 for the nine months ended September 30, 2011 and 2010, respectively.   As of September 30, 2011, there were 690,000 outstanding options, 409,020 of which were exercisable.  As of September 30, 2011, there was $19,289 of unrecognized stock-based compensation expense that will be recognized in future periods.

On September 6, 2011, the Company granted 260,000 restricted stock awards.  The fair value of the restricted stock awards was determined on the date of grant using the closing stock price of $0.09.  The fair value of the restricted stock awards is amortized over the vesting period of three to five years utilizing the straight-line method.  During September 2011, 10,000 restricted stock awards granted to an employee were forfeited upon termination of employment.  As of September 30, 2011, there were 250,000 restricted stock awards outstanding and $22,500 of unrecognized stock-based compensation expense that will be recognized in future periods.