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<us-gaap:SignificantAccountingPoliciesTextBlock contextRef="Context_6ME_30-Jun-2011">&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:left;" &gt;&lt;font style="display:inline;font-weight:bold;font-size:10pt;font-family:times new roman;" &gt;NOTE 1 &lt;font style="display:inline;font-family:symbol, serif;" &gt;- 
&lt;/font&gt;SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;The accompanying unaudited condensed consolidated financial statements include the accounts of Photonic Products Group, Inc. and its subsidiaries (collectively, the &amp;#8220;Company&amp;#8221;). All significant intercompany balances and transactions have been eliminated. 
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&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160;The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (&amp;#8220;U.S. GAAP&amp;#8221;) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. For further information, refer to the consolidated financial statements and accompanying footnotes included in the Company&amp;#8217;s Annual Report on Form 10-K for the year ended December 31, 2010. 
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&lt;/div&gt;&lt;div style="display:block;text-indent:0pt;" &gt;&lt;br /&gt;

&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:left;" &gt;&lt;font style="display:inline;font-weight:bold;font-size:10pt;font-family:times new roman;" &gt;Management Estimates 
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&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;These unaudited condensed financial statements and related disclosures have been prepared in conformity with U.S. GAAP which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses reported in those financial statements. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. 
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&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
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&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;Inventories are stated at the lower of cost (first-in-first-out basis) or market. The Company records a reserve for slow moving inventory as a charge against earnings for all products identified as surplus, slow-moving or discontinued. Excess work-in-process costs are charged against earnings whenever estimated costs-of-completion exceed unbilled revenues. 
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&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
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&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div style="margin-left:18pt;text-align:left;" &gt;&lt;table cellspacing="0" cellpadding="0" width="96%"  style="font-size:10pt;font-family:times new roman;" &gt;&lt;tr&gt;&lt;td valign="bottom" width="76%"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
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&lt;/td&gt;&lt;td valign="bottom" width="10%" colspan="2"  style="border-bottom:black 2px solid;" &gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:center;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&lt;font style="display:inline;" &gt;June&amp;#160;30, 
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&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap" width="1%"  style="padding-bottom:2px;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="10%" colspan="2"  style="border-bottom:black 2px solid;" &gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:center;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&lt;font style="display:inline;" &gt;December&amp;#160;31, 
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&lt;/font&gt;
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&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap" width="1%"  style="padding-bottom:2px;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr&gt;&lt;td valign="bottom" width="76%" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="22%" colspan="6" &gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:center;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;(in&amp;#160;thousands) 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="76%"  style="text-align:left;" &gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;Raw materials 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;$ 
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&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;1,097 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;1,103 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ffffff;" &gt;&lt;td valign="bottom" width="76%"  style="text-align:left;" &gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;Work in process, including manufactured parts and components 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;876 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;806 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="76%"  style="padding-bottom:2px;text-align:left;" &gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;Finished goods 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 2px solid;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="border-bottom:black 2px solid;text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&lt;font style="display:inline;" &gt;674 
&lt;/font&gt;
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap" width="1%"  style="padding-bottom:2px;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 2px solid;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="border-bottom:black 2px solid;text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&lt;font style="display:inline;" &gt;482 
&lt;/font&gt;
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap" width="1%"  style="padding-bottom:2px;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ffffff;" &gt;&lt;td valign="bottom" width="76%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 4px double;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="border-bottom:black 4px double;text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;2,647 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap" width="1%"  style="padding-bottom:4px;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 4px double;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="border-bottom:black 4px double;text-align:right;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;2,391 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap" width="1%"  style="padding-bottom:4px;text-align:left;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;
&lt;/div&gt;&lt;div style="margin-left:0pt;text-indent:0pt;margin-right:0pt;" &gt;&lt;div&gt;&lt;div style="width:100%;text-align:left;" &gt;&lt;font style="display:inline;font-size:8pt;font-family:times new roman;" &gt;
&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="width:100%;text-align:right;" &gt;&lt;font style="display:inline;font-size:8pt;font-family:times new roman;" &gt;
&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="display:block;text-indent:0pt;" &gt;&lt;br /&gt;

&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-weight:bold;font-size:10pt;font-family:times new roman;" &gt;Income Taxes 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company&amp;#8217;s financial statements or tax returns. Deferred tax liabilities and assets are determined based on the difference between the financial statements carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;For the three months and six months ended June 30, 2011 and 2010, the Company did not record a current provision for either state of federal income taxes due to the losses incurred for both income tax and financial reporting purposes. 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;As of June 30, 2011, the Company has recognized a net deferred tax asset balance in the amount of $408,000 which is the portion of the total net deferred tax balance of $2,716,000 that the Company&amp;#8217;s management is reasonably assured will be fully utilized in future periods.&amp;#160;&amp;#160;In evaluating the Company&amp;#8217;s ability to recover deferred tax assets in future periods, management considers the available positive and negative factors, including the Company&amp;#8217;s recent operating results, the existence of cumulative losses and near term forecasts of future taxable income consistent with the plans and estimates that management uses to manage the underlying business.&amp;#160;&amp;#160;The Company&amp;#8217;s valuation allowance of $2,308,000 as of June 30, 2011 will be maintained until management concludes that it is more likely than not that the remaining deferred tax assets will be realized. When sufficient positive evidence exists, the Company&amp;#8217;s income tax expense will be reduced by the decrease in its valuation allowance.&amp;#160;&amp;#160;An increase or reversal of the Company&amp;#8217;s valuation allowance could have a significant negative or positive impact on the Company&amp;#8217;s future earnings. 
&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div&gt;&lt;div style="display:block;text-indent:0pt;" &gt;&lt;font style="display:inline;font-weight:bold;font-size:10pt;font-family:times new roman;" &gt;Net Income (Loss) per Common Share 
&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares and common stock equivalents outstanding, calculated on the treasury stock method for options, stock grants and warrants using the average market prices during the period, including potential common shares issuable upon conversion of outstanding convertible notes, except if the effect on the per share amounts is anti-dilutive. 
&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;For the three months and six months ended June 30, 2011 and 2010, the potential dilutive effect of all common stock equivalent shares outstanding have been excluded from the diluted computation because their effect is anti-dilutive.&amp;#160;&amp;#160;&amp;#160;A total of 979,000 common stock options and grants, 1,875,000 warrants and 2,500,000 common shares issuable upon conversion of outstanding convertible notes were excluded from the computation of diluted net loss per common share for the three months and six months ended June 30, 2011.&amp;#160;&amp;#160;For the three months and six months ended June 30, 2010, 875,000 common stock options and grants, 1,875,000 warrants and 2,500,000 common shares issuable upon conversion of outstanding convertible notes were excluded from the computation of diluted net loss per common share. 
&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-weight:bold;font-size:10pt;font-family:times new roman;" &gt;Stock-Based Compensation 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;Stock-based compensation expense is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model.&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;&amp;#160; 
&lt;/font&gt;The fair value of restricted stock units granted is based on the closing market price of the Company&amp;#8217;s common stock on the date of the grant. The fair value of these awards, adjusted for estimated forfeitures, is amortized over the requisite service period of the award, which is generally the vesting period. 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="margin-left:0pt;text-indent:0pt;margin-right:0pt;" &gt;&lt;div&gt;&lt;div style="width:100%;text-align:left;" &gt;&lt;font style="display:inline;font-size:8pt;font-family:times new roman;" &gt;
&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="width:100%;text-align:right;" &gt;&lt;font style="display:inline;font-size:8pt;font-family:times new roman;" &gt;
&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-weight:bold;font-size:10pt;font-family:times new roman;" &gt;Recently Adopted Accounting Standards 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;In May 2011, the Financial Accounting Standards Board (&amp;#8220;FASB&amp;#8221;) issued Accounting Standards Update (&amp;#8220;ASU&amp;#8221;) No. 2011-04, &amp;#8220;Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (&amp;#8220;IFRS&amp;#8221;).&amp;#8221; This pronouncement was issued to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and IFRS. ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements particularly for Level 3 fair value measurements. This pronouncement is effective for reporting periods beginning on or after December 15, 2011, with early adoption prohibited. The new guidance will require prospective application. The Company is currently evaluating the effect that the provisions of this pronouncement will have on its financial statements. 
&lt;/font&gt;&lt;br /&gt;

&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-size:10pt;font-family:times new roman;" &gt;In June 2011, the FASB issued ASU No. 2011-05, &amp;#8220;Presentation of Comprehensive Income&amp;#8221; which was issued to enhance comparability between entities that report under U.S. GAAP and IFRS, and to provide a more consistent method of presenting non-owner transactions that affect an entity&amp;#8217;s equity. ASU 2011-05 eliminates the option to report other comprehensive income and its components in the statement of changes in stockholders&amp;#8217; equity and requires an entity to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement or in two separate but consecutive statements. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption of the new guidance is permitted and full retrospective application is required. The Company is currently evaluating the effect that the provisions of this pronouncement will have on its financial statements. 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="display:block;margin-left:0pt;text-indent:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160; 
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;</us-gaap:SignificantAccountingPoliciesTextBlock>


<us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock contextRef="Context_6ME_30-Jun-2011">&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;NOTE 2- EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;table border="0" cellspacing="0" cellpadding="0" width="100%"  style="text-align:left;" &gt;&lt;tr valign="top" &gt;&lt;td style="width:18pt;" &gt;&lt;div style="text-indent:0pt;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;a) 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td&gt;&lt;div style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Stock Option Expense 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;
&lt;/div&gt;&lt;br /&gt;

&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;The Company's results of operations for the three months ended June 30, 2011 and 2010 include stock-based compensation expense for stock option grants totaling $41,112 and $29,766, respectively.&amp;#160;&amp;#160;Such amounts have been included in the accompanying Consolidated Statements of Operations within cost of goods sold in the amount of $17,287 ($10,830 for 2010), and selling, general and administrative expenses in the amount of $23,825 ($18,936 for 2010).&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;The Company&amp;#8217;s results of operations for the six months ended June 30, 2011 and 2010 include stock-based compensation expense for stock option grants totaling $69,735 and $59,532, respectively.&amp;#160;&amp;#160;Such amounts have been included in the accompanying Consolidated Statements of Operations within cost of goods sold in the amount of $27,829 ($21,660 for 2010), and selling, general and administrative expenses in the amount of $41,906 ($37,872 for 2010).&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;As of June 30, 2011 and 2010, there were $308,133 and $248,640 of unrecognized compensation costs, net of estimated forfeitures, related to non-vested stock options, which are expected to be recognized over a weighted average period of approximately 2.5 years and 2.5 years, respectively.&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;The following range of weighted-average assumptions were used to determine the fair value of stock option grants during the six months ended June 30, 2011 and 2010, respectively:&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div style="text-align:left;" &gt;&lt;table cellspacing="0" cellpadding="0" width="100%" &gt;&lt;tr&gt;&lt;td valign="bottom"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" colspan="7"  style="border-bottom:black 2px solid;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Six Months Ended 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;June&amp;#160;30, 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr&gt;&lt;td valign="bottom"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" colspan="3"  style="border-bottom:black 2px solid;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;2011 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" colspan="2"  style="border-bottom:black 2px solid;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;2010 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="76%"  style="text-align:left;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Expected Dividend yield 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;0.00 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;% 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;0.00 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;% 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ffffff;" &gt;&lt;td valign="bottom" width="76%"  style="text-align:left;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Expected Volatility 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;100 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;% 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;236 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;% 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="76%"  style="text-align:left;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Risk-free interest rate 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;3.4 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;% 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="9%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;3.7 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;% 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ffffff;" &gt;&lt;td valign="bottom"  style="text-align:left;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Expected term 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" colspan="3"  style="text-align:right;" &gt;&lt;div style="text-align:right;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;8 -10 years 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" colspan="2"  style="text-align:right;" &gt;&lt;div style="text-align:right;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;8 -10 years 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div style="text-indent:0pt;margin-left:0pt;margin-right:0pt;" &gt;&lt;div&gt;&lt;div style="text-align:left;width:100%;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:8pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div&gt;&lt;p&gt;
&lt;/p&gt;
&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;p&gt;
&lt;/p&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;table border="0" cellspacing="0" cellpadding="0" width="100%"  style="text-align:left;" &gt;&lt;tr valign="top" &gt;&lt;td style="width:18pt;" &gt;&lt;div style="text-indent:0pt;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;b) 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td&gt;&lt;div style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Stock Option Activity&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;The following table represents stock options granted, exercised, and forfeited during the six month period ended June 30, 2011:&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div style="text-align:left;" &gt;&lt;table cellspacing="0" cellpadding="0" width="100%" &gt;&lt;tr&gt;&lt;td valign="bottom" width="40%"  style="border-bottom:black 2px solid;text-align:left;text-indent:0pt;padding-left:1%;margin-left:0pt;margin-right:0pt;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Stock Options 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="13%" colspan="2"  style="border-bottom:black 2px solid;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Number of Options 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="13%" colspan="2"  style="border-bottom:black 2px solid;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Weighted Average 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Exercise 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Price per Option 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="13%" colspan="2"  style="border-bottom:black 2px solid;text-align:center;text-indent:0pt;margin-left:0pt;margin-right:0pt;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Weighted Average 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Remaining 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Contractual Term (years) 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="13%" colspan="2"  style="border-bottom:black 2px solid;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Aggregate Intrinsic Value 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="40%"  style="text-align:left;" &gt;&lt;div style="text-indent:0pt;display:block;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Outstanding at January 1, 2011 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160;798,476 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;1.13 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;5.2 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;63,105 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ffffff;" &gt;&lt;td valign="bottom" width="40%"  style="text-align:left;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Granted 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;209,700 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;0.98 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="40%"  style="text-align:left;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Exercised 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;(20,000 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;) 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;0.95 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ffffff;" &gt;&lt;td valign="bottom" width="40%"  style="text-align:left;padding-bottom:2px;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Expired/Forfeited 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 2px solid;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 2px solid;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;(25,900 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;) 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 2px solid;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 2px solid;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;3.91 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 2px solid;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 2px solid;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 2px solid;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 2px solid;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="40%"  style="text-align:left;padding-bottom:4px;" &gt;&lt;div style="text-indent:0pt;display:block;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Outstanding at June 30, 2011 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 4px double;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 4px double;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160;962,276 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 4px double;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 4px double;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;1.07 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 4px double;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 4px double;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;6.0 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 4px double;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 4px double;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;79,989 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ffffff;" &gt;&lt;td valign="bottom" width="40%"  style="text-align:left;padding-bottom:4px;" &gt;&lt;div style="text-indent:0pt;display:block;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Exercisable at June 30, 2011 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 4px double;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 4px double;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;592,949 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 4px double;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 4px double;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;1.09 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 4px double;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 4px double;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;4.1 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:black 4px double;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="12%"  style="border-bottom:black 4px double;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;75,795 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:18pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&lt;br /&gt;
&lt;br /&gt;
The following table represents non-vested stock options granted, vested and forfeited for the&amp;#160;six months ended June 30, 2011.&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div style="text-align:left;" &gt;&lt;table cellspacing="0" cellpadding="0" width="100%" &gt;&lt;tr&gt;&lt;td valign="bottom" width="64%"  style="border-bottom:black 2px solid;border-left:medium none;border-top:medium none;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Non-vested Options 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;border-top:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="16%" colspan="2"  style="border-bottom:black 2px solid;border-top:medium none;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Options 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;border-top:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;border-top:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="16%" colspan="2"  style="border-bottom:black 2px solid;border-top:medium none;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Weighted-Average 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Grant-Date 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160;Fair Value 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;border-top:medium none;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="64%"  style="text-align:left;border-left:medium none;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Non-vested&amp;#160;&amp;#160;- January 1, 2011 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;254,525 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;1.14 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ffffff;" &gt;&lt;td valign="bottom" width="64%"  style="text-align:left;border-left:medium none;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Granted 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;209,700 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;0.89 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="64%"  style="text-align:left;border-left:medium none;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Vested 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&lt;font style="display:inline;font-size:10pt;" &gt;(91,998 
&lt;/font&gt;
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;) 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;1.20 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ffffff;" &gt;&lt;td valign="bottom" width="64%"  style="text-align:left;border-left:medium none;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Forfeited 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;(2,900 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;) 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;0.92 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="64%"  style="border-bottom:4px;text-align:left;border-left:medium none;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Non-vested &amp;#8211;&amp;#160;&amp;#160;June 30, 2011 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:4px;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="border-bottom:4px;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;369,327 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:4px;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="border-bottom:4px;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;0.99 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;
&lt;/div&gt;&lt;div style="text-indent:0pt;display:block;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&lt;br /&gt;
&lt;br /&gt;
The total fair value of options vested during the six months ended June 30, 2011 and 2010 was $110,035 and $60,000, respectively.&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;table border="0" cellspacing="0" cellpadding="0" width="100%"  style="text-align:left;" &gt;&lt;tr valign="top" &gt;&lt;td style="width:18pt;" &gt;&lt;div style="text-indent:0pt;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;c) 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td&gt;&lt;div style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Restricted Stock Unit Awards&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;There were 15,000 restricted stock units granted under the 2010 Equity Compensation Program during the six months ended June 30, 2011.&amp;#160;&amp;#160;These grants vest over a three year period contingent on continued employment or service during the vesting period.&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;There were no grants during the six months ended June 30, 2010.&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;The Company's results of operations for the three months ended June 30, 2011 and 2010 include stock-based compensation expense for restricted stock unit grants totaling $2,488 and $11,613, respectively.&amp;#160;&amp;#160;Such amounts have been included in the accompanying Consolidated Statements of Operations within cost of goods sold in the amount of $0 ($1,335 for 2010), and selling, general and administrative expenses in the amount of $2,488 ($10,278 for 2010).&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="text-indent:0pt;margin-left:0pt;margin-right:0pt;" &gt;&lt;div&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;The Company&amp;#8217;s results of operations for the six months ended June 30, 2011 and 2010 include stock-based compensation expense for restricted stock unit grants totaling $3,763 and $20,553, respectively.&amp;#160;&amp;#160;Such amounts have been included in the accompanying Consolidated Statements of Operations within cost of goods sold in the amount of $0 ($2,670 for 2010), and selling, general and administrative expenses in the amount of $3,763 ($17,883 for 2010). 
&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;
&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;div style="text-align:justify;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&lt;br /&gt;
A summary of the Company&amp;#8217;s non-vested restricted stock units at June 30, 2011 is presented below:&lt;br /&gt;
&lt;br /&gt;

&lt;/font&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;&lt;div style="text-align:left;" &gt;&lt;table cellspacing="0" cellpadding="0" width="100%" &gt;&lt;tr&gt;&lt;td valign="bottom" width="64%"  style="border-left:medium none;padding-bottom:2px;border-top:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;border-top:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="16%" colspan="2"  style="border-bottom:black 2px solid;border-top:medium none;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Restricted 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Stock Units 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;border-top:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:2px;border-top:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="16%" colspan="2"  style="border-bottom:black 2px solid;border-top:medium none;" &gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Weighted-Average 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;Grant-Date 
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-align:center;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160;Fair Value 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:2px;border-top:medium none;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="64%"  style="text-align:left;border-left:medium none;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Non-vested - January 1, 2011 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;6,998 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;3.59 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ffffff;" &gt;&lt;td valign="bottom" width="64%"  style="text-align:left;border-left:medium none;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Granted 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;15,000 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;0.97 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="64%"  style="text-align:left;border-left:medium none;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Vested 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;(4,998 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;) 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;4.00 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ffffff;" &gt;&lt;td valign="bottom" width="64%"  style="text-align:left;border-left:medium none;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Forfeited 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#8212; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#8212; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color:#ccffcc;" &gt;&lt;td valign="bottom" width="64%"  style="border-bottom:4px;text-align:left;border-left:medium none;" &gt;&lt;div style="text-align:left;text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;Non-vested &amp;#8211; June&amp;#160;&amp;#160;30, 2011 
&lt;/font&gt;
&lt;/div&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:4px;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="border-bottom:4px;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;17,000 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="padding-bottom:4px;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%"  style="border-bottom:4px;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;$ 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="15%"  style="border-bottom:4px;text-align:right;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;1.16 
&lt;/font&gt;
&lt;/td&gt;&lt;td valign="bottom" width="1%" nowrap="nowrap"  style="text-align:left;padding-bottom:4px;border-right:medium none;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;&amp;#160; 
&lt;/font&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;
&lt;/div&gt;</us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock>
<us-gaap:StockholdersEquityNoteDisclosureTextBlock contextRef="Context_6ME_30-Jun-2011">&lt;div&gt;&lt;div style="text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;text-align:left;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;font-weight:bold;" &gt;NOTE 3- STOCKHOLDERS&amp;#8217; EQUITY
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160;
&lt;/div&gt;&lt;div style="text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;For the six months ended June 30, 2011, the Company issued 124,669 common shares to the PPGI 401k plan as a match to employee contributions for 2010 and 4,628 shares of common stock were issued on the vesting of employee stock grants, net of shares tendered to cover withholding taxes.
&lt;/font&gt;
&lt;/div&gt;&lt;div style="text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;text-align:justify;" &gt;&amp;#160;
&lt;/div&gt;&lt;div style="text-indent:0pt;display:block;margin-left:0pt;margin-right:0pt;text-align:justify;" &gt;&lt;font style="display:inline;font-family:times new roman;font-size:10pt;" &gt;In addition, 20,000 common shares were issued for proceeds of $19,000 in connection with the exercise of stock options during the six month period.
&lt;/font&gt;
&lt;/div&gt;&lt;br /&gt;
&lt;/div&gt;</us-gaap:StockholdersEquityNoteDisclosureTextBlock>

<phpg:WeightedAverageNumberOfCommonShareOutstandingBasicAndDiluted contextRef="Context_3ME_30-Jun-2011" unitRef="Shares" decimals="0">11697353</phpg:WeightedAverageNumberOfCommonShareOutstandingBasicAndDiluted>
<phpg:WeightedAverageNumberOfCommonShareOutstandingBasicAndDiluted contextRef="Context_6ME_30-Jun-2011" unitRef="Shares" decimals="0">11622483</phpg:WeightedAverageNumberOfCommonShareOutstandingBasicAndDiluted>
<phpg:WeightedAverageNumberOfCommonShareOutstandingBasicAndDiluted contextRef="Context_3ME_30-Jun-2010" unitRef="Shares" decimals="0">11556729</phpg:WeightedAverageNumberOfCommonShareOutstandingBasicAndDiluted>
<phpg:WeightedAverageNumberOfCommonShareOutstandingBasicAndDiluted contextRef="Context_6ME_30-Jun-2010" unitRef="Shares" decimals="0">11494929</phpg:WeightedAverageNumberOfCommonShareOutstandingBasicAndDiluted>
<us-gaap:GainLossOnDispositionOfOtherAssets contextRef="Context_3ME_30-Jun-2011" unitRef="USD" decimals="0">0</us-gaap:GainLossOnDispositionOfOtherAssets>
<us-gaap:GainLossOnDispositionOfOtherAssets contextRef="Context_3ME_30-Jun-2010" unitRef="USD" decimals="0">0</us-gaap:GainLossOnDispositionOfOtherAssets>
</xbrli:xbrl>
