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Shareholders' Equity
 6 Months Ended
Jun. 30, 2011
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]

6. SHAREHOLDERS' EQUITY

 

Employee Retirement and Share-Based Incentive Plans

 

Share-Based Incentive Plan. An incentive award plan has been established for the purpose of attracting and retaining officers, key employees and non-employee board members. The Compensation Committee of the Board of Directors adopted a Restricted Stock plan (“Restricted Stock”) in December 2006 and granted nonvested shares of restricted common stock effective January 1 of each of the last five years. The nonvested shares have voting rights and are eligible for any dividends paid to common shares. The share awards vest in equal annual instalments over a three or five year period from date of issuance. The Company recognized compensation cost for these fixed awards over the service vesting period, which represents the requisite service period, using the straight-line attribution expense method.

 

The value of the nonvested shares was calculated based on the offering price of the shares in the most recent private placement offering of $10 adjusted for stock dividends since granted and assumed selling costs. The value of granted nonvested restricted stock issued during the six months ended June 30, 2011 totalled $448,400 which is calculated using the current private placement offering of $10 adjusted for estimated selling costs. The value of granted nonvested restricted stock issued during the six months ended June 30, 2010 totalled $461,100. During the three months ended June 30, 2011 and 2010, $109,620 and $83,700 were recorded as compensation expense. During the six months ended June 30, 2011 and 2010, $219,240 and $167,400 were recorded as compensation expense. The remaining 108,070 nonvested restricted shares will vest in equal installments over the next two to four years.

 

A table of non-vested restricted shares granted and vested since December 31, 2009 is as follows:

 

Balance, December 31, 200945,858
Granted 53,617
Vested (37,547)
Cancelled (286)
Balance, December 31, 2010 61,642
Granted 52,139
Vested (2,502)
Cancelled (3,209)
Balance, June 30, 2011108,070
  

Cash Dividends. During the six months ended June 30, 2011 and 2010, the Company declared dividends of $3,702,426 and $3,133,292, respectively, or $0.572 per share on an annualized basis.  As the Company reported net losses in both of these quarters, and on a cumulative basis, these cash dividends represent a return of capital to the stockholders rather than a distribution of earnings. The Company paid cash dividends on the Series AA Preferred Stock of $34,447 in the six month period ended June 30, 2010. In May 2010, the Series AA shares were redeemed.