Stock Options

12 Months Ended

Dec. 31, 2011

Stock Options [Abstract]

Stock Options [Text Block]

15. Stock Options

In connection with the November 8, 2011 “Strategic Transactions” the Company issued 740,000 options at an exercise price of $1.25. A total of 148,000 shares vest six months after the grant date. The aggregate intrinsic value was $0.00. The remaining options vest upon the achievement of performance milestones (see Note 11) Options vesting on the achievement of performance milestones will not be recognized as compensation until such milestones are deemed probable of achievement. The Company recorded stock- based compensation expense of $49,333 for the year ended December 31, 2011. There were no stock options outstanding at December 31, 2010. At December 31, 2011 the Company has approximately $525,000 of unrecognized compensation expense related to unvested share-based compensation awards. Compensation expense totaling $98,667 will be recognized over the first four months and the remaining $592,000 will vest upon the achievement of performance milestones.

The weighted-average fair value per share of the options granted is $1.00 estimated on the date of grant using the Black-Scholes-Merton option pricing model; the expected volatility is based upon historical volatility of the Company’s stock. The expected term is based upon observation of actual time elapsed between date of grant and exercise of options for all employees. The following assumptions were used to estimate the fair value of the options at grant date:

	December 31,
	2011
Risk -free interest rate		2.03	%
Expected dividend yield		0
Expected stock price volatility		148.37	%
Weighted average contractual life		10 years