STOCK BASED COMPENSATION

6 Months Ended

Jun. 30, 2011

Stock Based Compensation [Abstract]

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

NOTE 9—STOCK BASED COMPENSATION

Effective April 1, 2011, the Board of Directors approved a 4,000,000 nonqualified stock option grant to Embassy International, LLC, a Florida limited liability company controlled by the family of the former Chairman of the Board, pursuant to the Company's Amended and Restated 2010 Stock Incentive Plan. The options granted were immediately vested and exercisable on the grant date, expire two years from the grant date, and were issued to compensate Embassy International, LLC for entering into previous lending arrangements which has allowed the Company to fund operations and to continue its development activities. The grant date fair value of these options was $52,017. The Company has recorded stock-based compensation expense of $52,017 within Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations related to this option grant during the three and six months ended June 30, 2011. No stock options were granted or outstanding in 2010. As of June 30, 2011, the Company has 4,000,000 stock options outstanding.

The Company estimated the fair value of its 2011 stock option grant utilizing the Black-Scholes option pricing model based on the following assumptions:

Risk-free interest rate		0.80	%
Expected life	2.0 years
Expected volatility		355.0	%
Dividend yield		0.00	%

The risk-free interest rate is based on the zero-coupon U.S. Treasury yield curve in effect at the time of grant. Expected volatilities are based on historical daily volatility of the Company’s stock. As the option was awarded to a nonemployee, the expected life is estimated as the contractual term of the option agreement.