It is anticipated that the company will continue to utilize its shares as a means of compensating parties for services rendered.
Selling, general and administrative (“SG&A”) expenses consist primarily of personnel-related costs, legal costs, accounting costs and other professional, regulatory and administrative costs. The total SG&A expenses incurred during the three and nine month periods ended September 30, 2011 were $3,125,686 and $9,468,254 respectively. The costs for the quarter are $1,687,027 greater, and the nine-month figure is $3,431,190 more, than was incurred during the corresponding periods ended September 30, 2010. The largest single element of SG&A in each period is compensation costs that were paid through the issuance of the Company’s shares. The total at September 30, 2011 was $4,541,393 including $1,620,875 which arose in the third quarter. During the nine month period ended September 30, 2010 these compensation costs were $3,314,609 with only $301,589 having been incurred in the final three months. It is anticipated that the company will continue to utilize its shares as a means of compensating parties for services rendered. Professional fees, which include legal, audit and consulting fees related to accounting, legal and financial advisory services are the second most significant element of SG&A and they continue to rise as a result of additional audit and legal services required in connection with the Company’s statutory financial reporting and current legal proceedings. (See Part II – Item 1 “Legal Proceedings “).
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