Stockholders' Equity

6 Months Ended

Jun. 30, 2011

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 6 – STOCKHOLDERS’ EQUITY

(a)           Common stock issued for services

During the six months ended June 30, 2011, the Company issued an aggregate of 5,000 shares of its common stock to a director pursuant to an amended director’s agreement. The shares are valued at the fair value on the grant date and the Company recorded stock-based compensation of $16,674.

During the six months ended June 30, 2011, the Company issued an aggregate of 15,000 shares of its common stock to its chief financial officer pursuant to the employment agreement between the Company and the chief financial officer. The shares are valued at the fair value on the grant date and the Company recorded stock-based compensation of $50,025.

In March 2011, the Company issued an aggregate of 15,250 shares of its common stock to employees pursuant to the Company’s 2010 long-term incentive plan, of which 7,000 shares were granted to the Company’s chief executive officer.  None of the other shares were issued to executive officers or directors.  The shares are valued at the fair value on the grant date and the Company recorded stock-based compensation of $49,594.

On April 1, 2011, the Company issued 1,250 shares of its common stock to an employee pursuant to the engagement agreement between the Company and the employee. The shares are valued at the fair value on the grant date and the Company recorded stock-based compensation of $3,925.

On April 14, 2011, the Company issued 13,000 shares of common stock to an investor relations firm pursuant to an agreement with the firm for the twelve months beginning May 1, 2010.  The shares, which were issued pursuant to the 2010 long-term incentive plan, are valued at the fair value on the grant date. For the six months ended June 30, 2011, the Company recorded stock-based professional fees of $37,440.

On May 26, 2011, the Company authorized the issuance of 12,500 shares of common stock to an investor relations firm pursuant to an agreement with the firm for the twelve months beginning May 1, 2011. The shares, which are issuable in two installments of 6,250 shares, are valued at the fair value on the grant date, and the Company recorded stock-based professional fees of $3,917.

In June 2011, the Company issued an aggregate of 78,000 shares of its common stock to employees pursuant to the Company’s 2010 long-term incentive plan, of which 41,000 shares were granted to the Company’s chief executive officer.  None of the other shares were issued to executive officers or directors.  The shares are valued at the fair value on the grant date and the Company recorded stock-based compensation of $48,706 and prepaid expenses of $93,734 which will be amortized during the rest of service period.

On June 29, 2011, the Company issued 4,526 shares of its common stock to a director pursuant to a director’s agreement. The shares are valued at the fair value on the grant date and the Company recorded stock-based compensation of $4,526.

(b) Common stock issued for preferred share conversions

In February, the Company issued 312,000 shares of its common stock upon the conversion of 936,000 series A preferred shares.

(c)  Common stock sold for cash

On January 18, 2011, the Company sold 35,014 shares of its common stock to its chief financial officer for $125,000, representing the market price on January 18, 2011, the date of the stock purchase agreement.

(d)  Common stock issued on exercise of warrants

On May 17, 2011, the Company issued 41,848 shares of its common stock upon the cashless exercise of warrants.

(e)  Series A preferred stock issued for warrants exercise

During the period from February to April 2011, the Company issued a total of 706,715 shares of series A preferred stock upon the exercise of warrants, for which the Company received total cash proceeds of $400,000.  Each share of series A preferred stock is convertible into one-third share of common stock.

(f)  Warrants

On May 12, 2011, the Company issued 41,848 shares of its common stock in connection with the cashless exercise of 87,500 warrants.

Warrant activities for the six months ended June 30, 2011 are summarized as follows:

	Six Months Ended June 30, 2011
	Number of Warrants			Weighted Average Exercise Price
Balance at December 31, 2010		2,524,654		$	1.57
Granted		-			-
Exercised		(323,072	)		1.56
Forfeited		-			-
Balance at June 30, 2011		2,201,582		$	1.57
Warrants exercisable at June 30, 2011		2,201,582		$	1.57

The following table summarizes the shares of the Company's common stock issuable upon exercise of warrants outstanding at June 30, 2011:

Warrants Outstanding								Warrants Exercisable
Range of Exercise Price		Number Outstanding at June 30, 2011		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable at June 30, 2011		Weighted Average Exercise Price
$	1.698		1,649,991		1.38	$	1.698		1,649,991	$	1.698
$	1.200		551,591		1.38		1.200		551,591		1.200
			2,201,582		1.38	$	1.57		2,201,582	$	1.57