The Company issued a total of 3,515,105 common shares in the quarter ended September 30, 2012, described further as follows:

 

The Company’s independent directors annual compensation is $16,000 to be paid quarterly in restricted stock. The Company issued the directors 280,700 shares of restricted stock on July 1, 2012 for their second quarter 2012 compensation.

The Company issued 3,234,405 shares of common stock to management employees in lieu of $141,938 cash compensation for services rendered in the second quarter of 2012 which had been recorded at a value of $2,713.17 in stock based compensation based upon individual tax elections made by each recipient. The shares vest six months after issuance and are subject to forfeiture upon voluntary termination of employment.