Stock-based Compensation

6 Months Ended

Jun. 30, 2011

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

Note 5 – Stock-based Compensation

At June 30, 2011 the Company had six stock-based compensation plans, which are described more fully in Note 14 to the audited consolidated financial statements contained in the Company’s most recently filed Annual Report on Form 10-K.

The Company’s total compensation cost related to stock options is $48 and $66 for the three and six months ended June 30, 2011, respectively, as compared to $17 and $35 for the three and six months ended June 30, 2010. The increase in 2011 is due to options granted to employees and officers of both the Company and Counsel, as detailed below. The fair value compensation costs of unvested stock options in the first six months of 2011 and 2010 were determined using the Black-Scholes Option Pricing Model for grant dates between 2006 and 2011. Historical inputs to the model included expected volatility between 79% and 323%, risk-free interest rates between 0.94% and 5.07%, expected lives of 4.75 or 6.25 years, and an expected dividend yield of zero. The Company’s estimated forfeiture rate of its stock options is nil.

No tax benefit from stock-based compensation was recognized in the first six months of either 2011 or 2010, as no options were exercised. The Company’s stock-based compensation had no effect on its cash flows during either period.

During the first quarter of 2011, as detailed in the Company’s Report on Form 10-Q for the quarter ended March 31, 2011, as filed with the SEC, the Company issued a total of 1,540,000 options to officers, employees and directors.

On June 23, 2011, 230,000 options, having an exercise price of $1.83 and a fair value of $1.9992, were granted to the previous owners of Equity Partners as part of the consideration for the acquisition of Equity Partners.  These options are part of the 2003 Stock Options and Appreciation Rights Plan.  The inputs to the Black-Scholes Option Pricing Model were an expected volatility of 323%, a risk-free interest rate of 0.94%, an expected term of 4.75 years, and an expected dividend yield of zero.  No similar grants were made during the first six months of 2010.

On June 29, 2011, 250,000 options were granted to the President of CRBCI, and an additional 400,000 options were granted to officers of Counsel.  These options are part of the 2003 Stock Options and Appreciation Rights Plan.  The options have an exercise price of $1.974 and a Black-Scholes fair value of $2.10.  The inputs to the Black-Scholes Option Pricing Model were an expected volatility of 323%, a risk-free interest rate of 0.94%, an expected term of 4.75 years, and an expected dividend yield of zero.  No similar grants were made during the first six months of 2010

The following summarizes the changes in common stock options for the six months ended June 30, 2011 and 2010, respectively:

	Options			Weighted Average Exercise Price
Outstanding at December 31, 2010		728,246		$	0.89
Granted		2,420,000		$	1.85
Expired		(6,215	)	$	8.29
Outstanding at June 30, 2011		3,142,031		$	1.62
Options exercisable at June 30, 2011		892,031		$	1.12

	Options			Weighted Average Exercise Price
Outstanding at December 31, 2009		994,027		$	6.02
Granted		40,000		$	0.08
Expired		(80,781	)	$	59.25
Outstanding at June 30, 2010		953,246		$	1.26
Options exercisable at June 30, 2010		749,496		$	1.44