Note 7 - Stockholders Equity

12 Months Ended

Dec. 31, 2011

Schedule of Stockholders Equity [Table Text Block]

Note 7 – Stockholders’ Equity

On March 31, 2009, the Company completed a private placement of 810,690 units, each unit consisting of 1 share of the Company’s common stock and a 3-year warrant to purchase 15% of 1 share of the Company’s common stock at $1.73 per share, at $0.92 per unit for $746,000. The Company issued warrants to purchase 121,660 shares of its common stock to the investors in the private placement. The Company also issued warrants to purchase 81,090 shares of its common stock to the placement agents.

In May 2009, the Company completed two private placements of units consisting of 1 share of the Company’s common stock and a 3-year warrant to purchase 15% of 1 share of the Company’s common stock at $1.73 per share, pursuant to which the Company sold 2,100,000 units at $0.92 per unit for $1,932,000. The Company issued warrants to purchase 315,000 shares of its common stock to the investors in the private placement. The Company also issued warrants to purchase 210,000 shares of its common stock to the placement agents.

In connection with the private placements described above, the Company issued a registration rights agreement requiring the Company to file a registration statement covering the shares of its common stock issued in the private placement and the shares of its common stock issuable upon exercise of the warrants issued in the private placement. The registration statement with respect to such securities was declared effective on June 3, 2009, and a post-effective amendment to the registration statement was declared effective on June 30, 2010. Subject to certain grace periods, the registration statement must remain effective and available for use until the purchasers can sell all of the securities covered by the registration statement without restriction pursuant to Rule 144. If the Company fails to meet the filing or effectiveness requirements of the registration statement, it is required to pay liquidated damages of 1% of the aggregate purchase price paid by such purchaser for any registerable securities then held by such purchaser on the date of such failure and on each anniversary of the date of such failure until such failure is cured.

On September 21, 2009, the Company completed a private placement offering of 3,000,000 units, each unit consisting of 1 share of the Company’s common stock and a 3-year warrant to purchase 30% of 1 share of the Company’s common stock at $5.00 per share, at $5.00 per unit for $15,000,000 to non-U.S. investors. The Company issued warrants to purchase 900,000 shares of its common stock to the investors in the offering. A non-U.S. advisor to the Company received fees of 9% of the gross proceeds and warrants to purchase 300,000 shares of the Company’s common stock on the same terms as the investors. The Company paid an additional 3% advisory fee in connection with this private placement offering. The investors received registration rights. The Company issued the shares pursuant to an exemption from registration under Regulation S promulgated under the Securities Act of 1933, as amended.

On December 17, 2009, the Company completed a public offering of 6,900,000 shares of its common stock at $11.00 per share for $75,900,000. The Company paid commissions and fees associated with this offering of $9,931,296. The Company also paid offering cost of $320,000 related to this offering in 2010.

Stock Options

Following is a summary of the activity of options to an independent director:

	Options outstanding		Weighted Average Exercise Price		Weighted average remaining contractual life		Aggregate Intrinsic Value
Outstanding, December 31, 2009		130,000	$	10.96		4.98	$	45,500
Exercisable, December 31, 2009		56,666	$	10.96		4.98	$	19,833
Granted		-		-
Forfeited		80,000		-
Exercised		-		-
Outstanding, December 31, 2010		50,000	$	10.96		3.98	$	14,000
Exercisable, December 31, 2010		33,332	$	10.96		3.98	$	9,333
Outstanding, December 31, 2011		50,000	$	10.96		2.98	$	-
Exercisable, December 31, 2011		50,000	$	10.96		2.98	$	-

The exercise price for options outstanding at December 31, 2011, is as follows:

Number of Options				Exercise Price
	50,000			$	10.96

The assumptions used in calculating the fair value of options granted using the Black-Scholes option-pricing model are as follows:

Risk-free interest rate		2.25	%
Expected life of the options	3 to 3.5 years
Expected volatility		80	%
Expected dividend yield		0	%

During 2011, 2010 and 2009, the Company recorded $102,626, $275,698 and $333,387 as stock option expense, respectively.

Warrants

At the end of 2010, all warrants were exercised. No new warrants were granted during the year ended December 31, 2011.