Shareholders' equity

12 Months Ended

Dec. 31, 2011

Shareholders' equity

Note 13 – Shareholders’ equity:

During the years ended December 31, 2011 and 2010, the Company granted stock awards of 139,000 and 144,500 shares of common stock, respectively, to certain executives, key employees and a consultant. Compensation expense recorded in connection with the stock awards for the years ended December 31, 2011 and 2010 aggregated approximately $321,000 and $247,000, respectively.

During 2011, certain employees of the Company and a consultant were issued 114,273 shares of the Company’s common stock as a result of exercising stock options. The total cash received by the Company from the stock option exercises was approximately $65,100 and is reflected as paid in capital on the consolidated balance sheet.

During 2010, the Company redeemed warrants to purchase 1,000,000 shares held by its Chief Executive Officer.  See Note 8 for further information.