STOCK-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]

3. Stock-Based Compensation

We measure stock-based compensation expense based on the grant date fair value of the awards, which is then recognized over the period which service is required to be provided. We estimate the value of our stock option awards on the date of grant using the Black-Scholes option pricing model and amortize that cost over the expected term of the grant. We recognized $67,868 and $37,963 in stock-based compensation expense for the three months and $124,977 and $103,580 for the six months ended June 30, 2012 and 2011, respectively. We expect to recognize the compensation cost related to non-vested options as of June 30, 2012 of $198,573 over the weighted average remaining recognition period of 1.24 years.

We did not grant any stock options during the three or six months ended June 30, 2011. We used the following forward-looking range of assumptions to value each stock option granted to employees, consultants and directors during the three months ended June 30, 2012:

	2012
Dividend yield		0.0	%
Risk-free rate of return		1.0	%
Expected life in years		4.00
Volatility		72	%
Forfeiture rate		2.6	%